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A director of Deluxe Way International Investment Limited trading as Hoover Palace Restaurant was sentenced to two months' jail, suspended for three years, for wage offences under the Employment Ordinance at Tsuen Wan Magistrates' Courts today (January 20). The prosecution was launched by the Labour Department.
A spokesman for the Labour Department welcomed the judgment, adding that it would send a strong message to directors or responsible persons of limited companies that they had personal responsibility to ensure that wages were paid to employees in accordance with the Employment Ordinance.
"This is the first case this year that a jail sentence has been imposed on a director or responsible person of a limited company for committing wage offences. It shows that the courts are attaching more importance to such offences. Employers should not defy the law," he said.
Hoover Palace Restaurant ceased business on May 1, 2007. The company failed to pay wages of April and May 2007, totalling $45,848.1, to four employees within seven days after the termination of employment in accordance with the Employment Ordinance.
The employees subsequently lodged wage claims with the Labour Tribunal. The tribunal awarded in the employees' favour but the company failed to comply with the award to make payment.
According to Section 25 of the Employment Ordinance, wages due upon termination of employment must 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.
In addition, Section 64B of the ordinance stipulates that where any wage payment offence committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate, the director, manager, secretary or other similar officer shall be guilty of a like offence. Offenders are liable to prosecution and, upon conviction, to a maximum penalty of a fine of $350,000 and imprisonment for three years.
"The Labour Department does not tolerate wage offences and spares no effort in prosecuting employers and directors or responsible persons of limited companies who defy the law," the spokesman said.
Employees who are owed wages should call the Labour Department's complaint hotline, 2815 2200, immediately.
Ends/Tuesday, January 20, 2009
Issued at HKT 18:01
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