*******************************************************
The maximum penalty for wage offences under the Employment Ordinance will be raised tomorrow (March 30), with the fine rising from $200,000 to $350,000 and imprisonment from one year to three years.
The Permanent Secretary for Economic Development and Labour (Labour), Mr Matthew Cheung Kin-chung said that the increase would send a clear message to employers that wage defaults were a serious offence.
"Employers have the statutory responsibility to pay wages on time. According to Section 23, 24 and 25 of the Employment Ordinance, wages due upon expiry of the last day of the wage period and upon completion or 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 commits an offence," Mr Cheung said.
"The Labour Department takes a serious view of wage defaults. In addition to raising the maximum penalty of wage offences, we will continue with our inspection and vigorous enforcement. Should there be sufficient evidence, we will prosecute the offender. Employers should not defy the law," he continued.
As a result of the Labour Department's rigorous enforcement against offending employers in recent years, the number of convicted summonses on wage offences rose from 139 in 2002 to 587 last year - registering an increase of more than 320%. In the first two months of this year, 96 convicted summonses have been secured.
Mr Cheung urged employees who were owed wages to immediately report to the Labour Department's complaint hotline on 2815 2200.
Ends/Wednesday, March 29, 2006
Issued at HKT 11:31
NNNN