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Employer fined $13,000 for not paying wages and sickness allowance
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    Instant Travel Service Limited was fined $13,000 at the Kowloon City Magistrates' Courts today (February 15) for wage payment and sickness allowance offences under the Employment Ordinance. The prosecution was launched by the Labour Department.

     The employer did not pay wages to an employee within seven days after the termination of employment as required by the ordinance. He also failed to pay sickness allowance to the employee on the normal pay day.

     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. Under Section 33, sickness allowance shall be paid on the normal pay day. This allowance is a sum equivalent to four-fifths of the normal wages which the employee would have earned if he had worked on the sickness days.

     Any employer who fails to pay wages wilfully and without reasonable excuse is liable to a maximum fine of $200,000 and imprisonment for one year. And any employer who fails to pay sickness allowance without reasonable excuse is liable to a maximum fine of $50,000.

Ends/Wednesday, February 15, 2006
Issued at HKT 17:21

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