Director convicted over pay dispute

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The company failed to pay holiday pay to an employee as required by the employment ordinance (EO) and failed to pay the employee annual leave pay within seven days after the termination of employment.

The labour ordinance states that failing to pay someone annual leave or holiday pay makes the employer “liable to prosecution and, upon conviction, to a fine of $50,000”.

The company also failed to pay the employee a sum of about $111,000 within 14 days after the Labour Tribunal (LT) award had been issued. The director was convicted for his consent, connivance or neglect in offence related to the award.

The two defendants pleaded guilty in the Eastern Magistrates’ Courts. The company was fined $47,200 while the director was fined a further $20,000 in the matter. The defendants were ordered to clear the outstanding amount of about $111,000 to the employee via the court.

“The ruling helps disseminate a strong message to all employers that they have to pay employment entitlements and LT awarded sums to employees within the time limit in accordance with the EO,” a spokesperson for the Labour Department said in a statement.

“We do not tolerate the above offences and will continue to make dedicated efforts in enforcing the EO and safeguarding employees’ statutory rights.”

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