Company director sentenced to suspended imprisonment for default of wages and payment in lieu of notice

     A director of Tsang's Engineering (Hong Kong) Limited was prosecuted by the Labour Department (LD) for failing to pay employees wages and payment in lieu of notice under the Employment Ordinance (EO). The director pleaded guilty at Kowloon City Magistrates' Courts on June 17 and was sentenced to one month's imprisonment suspended for 18 months today (July 2).

     The company failed to pay wages to two employees and payment in lieu of notice to one employee, totalling about $106,000, within seven days after the expiry of wage period or the date of termination of employment. The director concerned was prosecuted and convicted for his consent, connivance or neglect in the above offences.

     "The judgment would disseminate a strong message to all directors and responsible officers of bodies corporate that they have personal liability to ensure payment of wages and payment in lieu of notice to employees within the time limit in accordance with the EO. The LD will not tolerate these offences and will spare no effort in enforcing the law and safeguarding employees' statutory rights," a spokesman for the LD said.