Penalties to include maximum fine of HK$350,000 and 3 years' imprisonment

Employers who fail to pay salaries willfully and without reasonable cause will be prosecuted, under the newly amended Employment (Amendment) Bill 2009.

The Legislative Council passed the bill Wednesday. It is scheduled to become law during the second half of this year.

The amendment covers money owing, either wages or other entitlements, as determined by the Labour Tribunal (LT), or the Minor Employment Claims Adjudication Board (MECAB).

Any employer, who willfully and without reasonable cause fails to pay the sum within 14 days of the due date, will faces a fine of up to HK$350,000 and imprisonment for up to three years.

"The bill is very complicated; it is a major policy breakthrough," said Matthew Cheung Kin-chung, Secretary for Labour and Welfare.

He stressed that the bill is intended as a deterrent to irresponsible employers who deliberately fail to comply with civil judgments of the LT or the MECAB.

At present, employees need to enter into lengthy procedures through various departments to claim unpaid salaries. Some companies also use different tactics to delay payments. Some change their company names or appoint new boards. Therefore, former employees are left to carry the burden of seeking redress after LT or the MECAB rulings. "Due to time, money and energy it may need, they are finally not able to get their due reward and get even," Cheung added.

In view of this, a legislator from the Hong Kong Confederation of Trade Unions Lee Cheuk-yan sees the bill as a crucial step to deter irresponsible employers from delaying payment of workers' earnings. During the debate, most lawmakers voiced support for the bill. Commercial sector legislator Jeffrey Lam Kin-fung urged the administration to take account of employers' difficulties. He said employers should be given the chance to explain any delays before facing legal action.

Another lawmaker from the catering sector, Tommy Cheung Yu-yan, despite voting in favor of the bill, advised the administration to enforce the law cautiously and to remind employers of the relevant amendment.

However, lawmaker Ronny Tong Ka-wah from the Civic Party criticized the bill, saying it provides too many exemptions which will be to the advantage of employers.

Secretary Cheung said the bill includes procedures to distinguish whether employers deliberately fail to comply with the rulings of the LT or the MECAB. The bill also helps speed up the progress of legal procedures which should be beneficial to employers and employees alike, he added.

The Hong Kong Construction Association welcomes the bill but suggested that it is necessary to establish basic rules and guidelines to avoid potential misinterpretation and misunderstanding by the general public and, more importantly, to send appropriate notice to unscrupulous employers of their potential liabilities.

China Daily

(HK Edition 04/29/2010 page1)