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A partner of a food shop was fined $10,000 at the Fanling Magistrates' Courts today (April 7) for failing to take out an insurance policy for employees as required by the Employees' Compensation Ordinance. The prosecution was taken out by the Labour Department.
The offence was detected by the Labour Department during an inspection to the food shop on January 5. It was found that the employer failed to secure insurance policies for five employees.
Section 40(1) of the ordinance stipulates that employers are required to take out insurance policies for all 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 on summary conviction 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 which imposes a levy on premium paid on employees' compensation insurance policies.
Employees are urged to call the complaint hotline of the department's Labour Inspection Division on 2815 2200 if they suspect that their employers have not taken out insurance cover for them. All complaints will be handled in strict confidence.
Ends/Tuesday, April 7, 2009
Issued at HKT 18:16
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