Hong Kong firm, director fined $120,000 for wage-related breach

Company 'wilfully and without reasonable excuse contravened' the rules

Hong Kong firm, director fined $120,000 for wage-related breach

A court in Hong Kong has issued a $120,000 fine against an organisation and its director for a wage-related breach worth more than half a million Hong Kong dollars.

Yin Wan Plumbing Limited and its director were fined for failing to pay the wages of six employees within seven days after the expiry of the wage periods, according to a press release from the Hong Kong government.

The breach reached a total of $559,000.

According to the release, the company "wilfully and without reasonable excuse contravened" a requirement under Hong Kong's Employment Ordinance. Its director was prosecuted for his consent, connivance, or neglect in the offence.

Both the company and its director pleaded guilty at the Easter Magistrates' Courts on Friday.

Hong Kong's Employment Ordinance

A spokesperson from the Labour Department (LD) said the ruling against Yin Wan Plumbing and its director will disseminate a strong message that employers need to pay wages to employees within the statutory time limit stipulated in the Employment Ordinance.

"The LD will not tolerate these offences and will spare no effort in enforcing the law and safeguarding employees' statutory rights," the spokesperson said.

Hong Kong's Employment Ordinance mandates employers to pay all termination payments "as soon as practicable and in any case not later than seven days after the date of termination or expiry of contract."

"An employer who wilfully and without reasonable excuse fails to pay termination payments when they become due is liable to prosecution and, upon conviction, to a fine of $350,000 and to imprisonment for three years," Hong Kong's Employment Ordinance read.

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