Software firm, director fined failing to pay wages on time

A software firm and its director has been fined $241,000 for violating the Employment Ordinance (EO) after they failed to pay employees their wages on time. 

Seven employees failed to receive their wages, totalling about $300,000, within seven days after the expiry of the wage periods and termination of their employment contracts, according to a bulletin from the Hong Kong government.

One employee also didn't receive from the company the $90,000 sum awarded by the Labour Tribunal (LT) within 14 days after the date set by the court.

The Labour Department (LD) commenced legal action against the firm and its director for contravening the Employment Ordinance.

As stipulated in the ordinance, employers shall pay all termination payments, except for severance payment, to the employee "as soon as practicable and in any case not later than seven days after the date of termination or expiry of contract."

The director concerned was prosecuted and convicted for his consent, connivance, or neglect in the offences made by the company, according to the bulletin.

Both the company and the director pleaded guilty at the Kowloon City Magistrates' Courts on Monday and were each fined $120,500. They are also ordered to pay an outstanding sum of about $357,000 via the court to the employees concerned.

Zero tolerance for wage breaches

The case is a "strong message" to employers when it comes to paying their staff on time, according to a spokesperson from the Labour Department.

"The ruling will disseminate a strong message to all employers, directors, and responsible officers of companies that they have to pay employees' wages within the time limit stipulated in the EO and awarded sums as ordered by the LT or the Minor Employment Claims Adjudication Board," the spokesperson said in a media release.

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