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Armed Forces Security (H.K.) Limited was fined a total of $88,000 at the Kwun Tong Magistrates' Courts today (March 29) for committing offences on wage and annual leave payments under the Employment Ordinance. The prosecution was taken out by the Labour Department.
The employer was fined $76,000 for failing to pay wages to five employees within seven days of the expiry of the wage period and the termination of employment as required by the ordinance. The amount of wages involved was about $60,000.
In addition, the employer was fined $12,000 for failing to grant seven days annual leave to one of the employees within seven days of the expiry of the wage period and the termination of employment as well as failing to pay annual leave payment to two of the employees, as required by the Employment Ordinance.
According to Section 23 and 25 of the Employment Ordinance, wages due upon expiry of the last day of the wage period and upon termination of employment shall 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.
According to Section 41AA of the Employment Ordinance, an employee is entitled to annual leave with pay after having been employed under a continuous contract for every 12 months. An employee shall take the paid annual leave to which he is entitled within the following period of 12 months.
Section 41D of the same Ordinance also stipulates that an employee should be paid his/her annual leave pay as soon as practicable, and in any case not later than seven days after the day of termination.
Any employer who fails to grant the annual leave or make the annual leave payment without a reasonable excuse is liable to prosecution and, upon conviction, to a maximum fine of $50,000.
The Labour Department urged employees who are owed wages to call its complaint hotline on 2815 2200 immediately.
Ends/Thursday, March 29, 2007
Issued at HKT 19:10
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