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LCQ21: Wage default
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     Following is a question by the Hon Leung Kwok-hung and a written reply by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, in the Legislative Council today (June 18):

Question :

     It has been reported that some former employees of We Channel, a web radio station (the station) formerly known as the Hong Kong New Power Media Limited (New Power), complained to the Labour Department (LD) on the 3rd of this month that the station had defaulted on payments for their wages of more than $20,000. They also alleged that at the end of August last year, the operator of the station, who was the President of the Parents' Association of Hong Kong (PAHK) cum President of the Federation of Parent-Teacher Associations of Yau, Tsim and Mongkok Districts Limited, had arranged them to work for the Police and Citizens Music Concert organized by the Hong Kong Retired Police Officers Betterment Association (RPOBA), but had not paid them the wages for such work. In this connection, will the Government inform this Council:

(1) whether the Government provided any funding to PAHK and RPOBA in the past five years; if it did, of the projects it funded and the amounts of the funding involved;

(2) of the number of persons who complained to LD in this month about the aforesaid station defaulting on wage payments; how LD has followed up such complaints, and whether it will help such persons to file claims with the Labour Tribunal for arrears of wages;

(3) whether LD received any complaint in the past five years about New Power, PAHK or RPOBA defaulting on wage payments; if it did, of the details;

(4) whether LD handles complaints about arrears of wages in different ways based on the backgrounds of the employers concerned; if it does, of the reasons for that;

(5) whether it will step up efforts to clamp down on employers repeatedly defaulting on wage payments, so as to protect the interests of employees; if it will, of the details; if not, the reasons for that; and

(6) whether it will consider raising the penalties for defaults on wage payments (e.g. raising the maximum length of imprisonment), so as to increase the deterrent effect for the protection of employees' interests; if it will, of the implementation time; if not, the reasons for that, and whether the Government is condoning unscrupulous employers defaulting on wage payments?

Reply:

President,

     My reply to the question of the Hon Leung Kwok-hung is set out below:

(1) The Hong Kong Police Force (HKPF) provides subsidy from the Police Welfare Fund (PWF) to the four HKPF-recognised retiree associations, namely the Hong Kong Police Old Comrades' Association, the Royal Hong Kong Police Association, the Hong Kong Police Old Comrades' Association (Canada) and the HK Marine Police Retirees' Association.

     The Hong Kong Retired Police Officers Betterment Association is neither recognised by the HKPF nor subsidised by the PWF.

     We are also not aware of any Government funding that has been provided to the Parents' Association of Hong Kong.

(2) In early June 2014, the Labour Relations Division (LRD) of Labour Department (LD) received an employment claim from five claimants against the organisation mentioned in this question. The claim involved disputes on whether wages were owed. A conciliation meeting has been arranged for the claimants and the party being claimed with a view to assisting them to understand their respective obligations and rights under the Employment Ordinance (EO) and the employment contracts. Through exploring the crux of the problem and direct dialogue, we will render assistance to both parties to identify a mutually acceptable settlement. If the parties fail to reach any settlement through conciliation we will, depending on the amount claimed and the number of claimants of the case, refer the claimants to the Labour Tribunal or the Minor Employment Claims Adjudication Board for adjudication.  

(3) In the past five years, LD received two complaints against the Hong Kong New Power Media Limited (New Power) for wages offences. LD had duly followed up on these complaints. No irregularity was detected in one of the cases while prosecution had been taken out in the other case. Two convicted summonses were successfully secured against New Power for wage offences.

(4) LD handles each and every wage complaint according to the same procedure. We will follow up and investigate all complaints received promptly. On receipt of an employment claim, LRD will offer conciliation service to the employee and employer concerned with a view to helping both parties resolve their dispute and fulfil their statutory and contractual obligations, irrespective of the background of the employee and the employer concerned. If LD detects any suspected wage offences under EO on the part of employers in the course of handling the employment claims, the concerned employees will be invited to provide further information and to act as prosecution witnesses. As and when there is sufficient evidence, LD will take out prosecution against those employers who wilfully defy the law.

(5) To clamp down on employers evading their wage liabilities, LD will continue to widely publicise its complaint hotline (tel: 2815 2200) to encourage prompt reporting of breaches of EO so that speedy action can be taken. LD has also hired former police officers as contract investigation officers to reinforce its capacity in intelligence gathering and evidence collection. At the same time, labour inspectors will conduct inspections to workplaces of various industries to uncover suspected offences under EO. LD will also strengthen its enforcement against wage offences through enforcement campaigns targeting at offence-prone trades and establishments to further protect employees' statutory entitlements. If the employer is a limited company, its director or responsible person may also be prosecuted together with the limited company should there be sufficient evidence, so as to enhance the effectiveness of combating wage offences.

(6) Any employer, company director or responsible person who commits wage offences under EO is liable to a maximum fine of $350,000 and imprisonment for three years. Such penalty is considered to be effective in deterring wage offenders. At present, the Government has no plan to introduce heavier penalty on wage offences. To protect employees' statutory entitlements, LD will continue its multi-pronged strategy to strengthen its publicity and public education effort; to take out stringent enforcement action; and to adopt preventive measures to clamp down on employers evading their wage liabilities.

Ends/Wednesday, June 18, 2014
Issued at HKT 14:54

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