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The director of Vacation Travel Company Limited, Mr Yeung Tak-shing, Marco, was sentenced in the Kwun Tong Magistrates' Court today (March 16) to four months jail, suspended for two years, for wage offences under the Employment Ordinance. The prosecution was taken out by the Labour Department.
Mr Yeung failed to pay wages to six employees within seven days of the termination of employment. The amount of wages involved was about $110,000. In addition to the imprisonment sentence, the employer was ordered to clear the outstanding wages within six months.
Commenting on the case, the Permanent Secretary for Economic Development and Labour, Mr Matthew Cheung Kin-chung, said today this was the seventh time that a jail sentence had been imposed on an employer or a company director for wage offences.
"We welcome the custodial sentence as this will deter unscrupulous employers from defaulting on wage payments. It also sends a strong message that company directors have a personal responsibility to ensure that wages are paid to employees in accordance with the Employment Ordinance.
"The Labour Department will keep up its efforts to tackle wage offences to protect the interests of workers," he said.
The Vacation Travel Company Limited ceased operation in January last year. The Labour Department took out the prosecution in respect of six workers who came forward as prosecution witnesses for their wage arrears. The department prosecuted Mr Yeung as evidence indicated that the wage offences were committed with his consent or connivance.
"The Labour Department will not tolerate any malpractice and will do everything within its power to bring the law-defying employers and company directors to justice," Mr Cheung said.
Section 64B of the Employment Ordinance stipulates that where any wage payment offence committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, the director, manager, secretary or other similar officer shall be guilty of the like offence.
According to Section 25 of the Employment Ordinance, wages due upon termination of employment shall be paid as soon as practicable, but not later than seven days.
Any employer or company director who fails to do so wilfully and without reasonable excuse is liable to a maximum fine of $350,000 and imprisonment for three years.
"The Labour Department is determined to carry out enforcement action under the ordinance. In 2006, 785 summonses for wage offences were convicted, representing an increase of 33.7% over the previous year. Employers and company directors should not try to defy the law," Mr Cheung said.
"An employee should protect one's own interests and come forward as a prosecution witness if the employer and company director defaults on wage payments. We will not hesitate to prosecute the employer and company director concerned if there is sufficient evidence and if the worker is willing to testify in court," he said.
Mr Cheung urged employees who were owed wages to immediately report to the Labour Department's complaint hotline on 2815 2200.
Ends/Friday, March 16, 2007
Issued at HKT 19:06
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