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A director of Climax Management Company Limited was sentenced at Kowloon City Magistrates' Courts today (January 5) to two months' jail, suspended for 18 months, for wage offences under the Employment Ordinance. He was also ordered to clear the outstanding wages via the court. The prosecution was launched by the Labour Department.
A spokesman for the Labour Department said that the judgement would send a strong message to directors or responsible persons of limited companies that they had to ensure that wages were paid to employees in accordance with the Employment Ordinance. "This is the first time this year that jail sentences have been imposed on employers and directors or responsible persons of limited companies for committing wage offences. It shows that the courts are attaching more importance to such offences. Employers should not defy the law," the spokesman said.
The company failed to pay wages of about $256,000 to an employee within seven days after the expiry of the wage period and termination of employment as required by the ordinance. The director was convicted for his consent, connivance or neglect in the wage offences.
According to Section 23 and 25 of the Employment Ordinance, wages due upon expiry of wage period or upon termination of employment shall be paid as soon as practicable, but not later than seven days thereafter. Any employer who fails to do so wilfully and without reasonable excuse commits an offence. In addition, Section 64B of the ordinance stipulates that where any wage 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/Wednesday, January 5, 2011
Issued at HKT 16:41
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