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Pioneer Sea & Air Limited was fined $10,000 at the Kowloon City Magistrates' Courts recently for failing to take out insurance policies for its employees as required by the Employees' Compensation Ordinance.
The offences were detected during an inspection by the Labour Department in October last year. The employer was found failing to secure insurance policies for five employees. The employer was subsequently summonsed under section 40(1) of the Employees' Compensation Ordinance by the Labour Department.
Section 40(1) of the Ordinance stipulates that employers are required to take out insurance policies for all of 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.
Ends/Tuesday, February 28, 2006
Issued at HKT 18:02
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