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An employer, Richard Tse Kin-sun, was today (September 1) jailed for two months for failing to take out an insurance policy for an employee as required by the Employees' Compensation Ordinance.
In December, 2004, the Labour Department found that the employer failed to secure an insurance policy for an employee. In December, 2005, he was prosecuted under section 40(1) and was fined $10,000 and sentenced to two months¡¦ imprisonment, suspended for two years.
The Labour Department conducted a follow-up inspection after the sentence in December, 2005, and found that the employer had still not secured an insurance policy for the employee.
The department launched another prosecution, again under section 40(1) of the ordinance. The employer pleaded guilty at Eastern Magistrates' Courts today.
Section 40(1) of the ordinance stipulates that employers are required to take out insurance policies for all of their employees to cover their liabilities both under the Ordinance and at common law for injuries at work.
Employers failing to secure insurance cover for their employees commit an offence and are liable to a maximum fine of $100,000 and imprisonment for one year. In addition, they are liable to pay a surcharge to the Employees Compensation Assistance Fund Board.
Ends/Friday, September 1, 2006
Issued at HKT 18:46
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