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An employer, Mr Lo Chi-ming, was fined $13,000 at the Kwun Tong Magistrates' Courts today (August 16) for failing to take out an insurance policy for an employee as required by the Employees' Compensation Ordinance.
Lo employed a courier in June, 2006, working for Tohkai Express Service Company. On January 19 this year, while working for the defendant, the courier was seriously injured in a traffic accident and subsequently died.
On January 25, the defendant reported the accident to the Labour Department but said that the insurance policy covering the courier had expired on the day of the accident.
Section 40(1) of the ordinance stipulates that employers are required to take out insurance policies for 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. They are also liable to pay a surcharge to the Employees Compensation Assistance Fund Board.
Ends/Thursday, August 16, 2007
Issued at HKT 17:47
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