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Mak Chi-ming trading as Lik Wang International Sofa Company was fined $35,000 at the Shatin Magistrates' Courts today (November 24) for failing to clear compensation to an employee who was injured at work.
In April, 2005, an employee, working as a sales representative for the defendant, sustained neck injury in a work accident. Subsequently, the Labour Department found that the defendant failed to secure an insurance policy for the employee. A prosecution was launched and the defendant was convicted and was fined $6,000 in November, 2005.
In January this year, the defendant had failed to clear the employee's compensation after a certificate of review of compensation assessment was issued. The employer was again prosecuted by the department.
The Employees' Compensation Ordinance (ECO) 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 do so commit an offence and are liable on summary conviction to a maximum fine of $100,000 and imprisonment for one year.
The ECO also says that an employer should pay the injured employee the outstanding compensation within 21 days after the date of issue of a certificate of review of compensation assessment. If the employer fails to do it, he is liable to pay 5% of the outstanding compensation as surcharge; and if the employer still fails to pay within three months after the expiry of the payment period, he is liable to pay 10% of the aggregate amount of the outstanding compensation and the surcharge already incurred.
Employers failing to clear the employee's compensation, without reasonable excuse, as required by the ECO are liable to a maximum fine of $100,000 for each offence.
Ends/Friday, November 24, 2006
Issued at HKT 18:25
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