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W.L.Y. Enterprises Limited was fined $10,000 at the Shatin Magistrates' Courts today (June 30) 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 May last year. The employer was found failing to secure insurance policies for three employees. Thus, the Labour Department launched prosecution against the employer.
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.
Employees are urged to call the complaint hotline of the department's Labour Inspection Division on 2815 2200 if they suspect that their employers have not taken out insurance cover for them. All complaints will be handled in strict confidence.
Ends/Friday, June 30, 2006
Issued at HKT 18:26
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