Two employers fined for wage offences
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          Yau Luen Cleaning Co Limited and Howell Engineering Limited were fined $23,500 and $32,000 respectively at the Kwun Tong Magistrates' Courts today (September 7) for offences under the Employment Ordinance. The prosecutions were launched by the Labour Department.

Yau Luen Cleaning Co Limited failed to pay wages to two employees within seven days of the expiry of the wage period. It also failed to grant a statutory holiday to the two employees. In addition, the employer did not comply with the provisions of the Employees' Compensation Ordinance to secure insurance policies for these employees.

Howell Engineering Limited failed to pay wages to an employee within seven days of the expiry of the wage period. The amount of wages involved was about $61,200. In addition to paying the fines, the employer was ordered to clear the outstanding wages via court.

According to Section 23 of the Employment Ordinance, wages due upon expiry of the last day of the wage period must be paid as soon as practicable, but not later than seven days.

Any employer who fails to do so wilfully and without reasonable excuse is liable to a maximum fine of $350,000 and imprisonment for three years.

Moreover, under the Employment Ordinance, all employees, irrespective of their length of service, are entitled to 12 statutory holidays a year.

According to Section 39 of the ordinance, if an employee is required to work on a statutory holiday, his employer must arrange an alternative holiday within the 60 days before or after the statutory holiday.

Any employer who fails to grant statutory holidays is liable to a maximum fine of $50,000.

On the other hand, section 40 of the Employees' Compensation 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.

The Labour Department urged employees who are owed wages or being deprived of statutory rights to call its complaint hotline, 2815 2200 immediately.

Ends/Thursday, September 7, 2006
Issued at HKT 18:21

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