Home>News Center>China

Bosses jailed for wage defaults for debtors
By Chen Hong (China Daily)
Updated: 2006-01-14 05:28

SHENZHEN: Eight company executives in this southern city of South China's Guangdong Province have been jailed for up to one month for failing to pay suppliers and workers.

It is the first time on the Chinese mainland that defaulters have been subject to criminal prosecutions.

In the absence of any specific laws, the local public security bureau charged them with fraud and related economic offences.

Ma Hongbing, an official from the Ministry of Labour and Social Security, said the practice could be followed in the rest of the country to better protect labourers' rights, according to a report by the Southern Metropolis News.

The National People's Congress the country's supreme legislature is studying whether to list the crime of payment defaults as an offence in the country's Criminal Law, Ma was quoted as saying.

The eight executives, including two people from Hong Kong, were convicted at an open trial on Thursday.

According to the Shenzhen Public Security Bureau, the accused withheld many details from investigators and frequently changed company names to try to avoid detection.

In total, they failed to pay more than 41 million yuan (US$5.06 million) to at least 350 suppliers, and more than 7 million yuan (US$863.131) to 1,200 workers.

Another 30 companies were named and received public condemnation during the same hearing. Bosses were requested to go to the local labour departments to resolve the problems within 30 days, or face civil prosecution.

"The event rang alarm bells for all bosses who default on wages, and it has shown the local government will deal a heavy blow to them," Jin Yongquan, a senior lawyer at Jin & Partners, told China Daily.

However, without clear legal stipulations for default, the workers' benefits can hardly be protected to the full, he added.

Wage defaulting is increasing ahead of the Chinese Lunar New Year which falls on January 29 with large groups of migrant labourers trying to get their wages before heading home for family reunions.

In Shenzhen, about 1,300 companies were fined a total of 47.6 million yuan (US$5.87 million) for defaulting wages last year, according to local labour department figures. Workers got back 290 million yuan (US$35.8 million) with help from labour departments.

'Chun Yun' will begin tomorrow
Railway transport peak to come
Snow fun
  Today's Top News     Top China News

Four Chinese among haj stampede fatalities; 362 died



EU 'made wrong decision on Chinese shoe industry



UN praises China for combating pollution



Al Qaeda No.2 may have been killed: US media



US House group to discuss China cooperation



Car sales and output top 5.7 million


  Four Chinese among haj stampede fatalities; 362 died
  UN praises China for combating pollution
  Ticket scam targets spring break uni students
  Sailor saved after 39-hour stay under Yangtze
  China cenbank sets mid-point yuan rate at 8.0698
  China, India sign energy agreement
  Go to Another Section  
  Story Tools  
  News Talk  
  It is time to prepare for Beijing - 2008  
Manufacturers, Exporters, Wholesalers - Global trade starts here.