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The proprietor of a transportation company was sentenced to two weeks' imprisonment, suspended for two years, in addition to a fine of $5,000 at the Shatin Magistrates' Courts today (March 6) for failing to take out an insurance policy for his employee as required by the Employees' Compensation Ordinance. The prosecution was launched by the Labour Department.
The Principal Magistrate pointed out that a fine alone would not reflect the seriousness of the case and hoped that the conviction would send out a strong message to all employers that they have absolute responsibility to take out an insurance policy for their employees. Employers are criminally liable for their failure to take out a compensation insurance policy for employees under the Employees' Compensation Ordinance, and it is a serious offence.
The Labour Department welcomes the judgment. This is the first case this year in which an employer was sentenced to imprisonment for not taking out an insurance policy for his employee.
The case involved a fatal accident that occurred at a roadside in Tai Po on May 7 last year, in which a worker, working between the tailgate and the body chassis of a truck, was crushed to death. It was found that the proprietor had failed to secure an insurance policy for the worker and the Labour Department launched the prosecution.
Section 40(1) of the Employees' Compensation Ordinance stipulates that employers are required to take out insurance policies for all their employees to cover their liabilities both under the Ordinance and common law for injuries at work.
"Employers failing to secure insurance cover for their employees commit an offence. In addition, they are liable to pay a surcharge to the Employees Compensation Assistance Fund Board. The Labour Department does not tolerate such offences and spares no efforts in prosecuting employers who defy the law," a spokesperson for the Labour Department said.
The Labour Department stresses that employers should take out employees' compensation insurance policies for their employees to ensure that employees injured at work can receive employees' compensation. The Labour Department will continue to safeguard the statutory employment rights and benefits of all workers in Hong Kong. The spokesperson urged all workers who suspect that their employers have not taken out insurance cover for them to promptly report the matter to the Labour Department, assist in investigation and give evidence to protect their statutory rights and benefits.
To enhance the awareness and knowledge of their employment rights and benefits, the department will continue to hold various promotional and educational activities.
Ends/Friday, March 6, 2015
Issued at HKT 17:58
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