Employer fined for non-payment of periodical payments in accordance with Employees’ Compensation Ordinance

     The Labour Department launched prosecution against an employer for failing to pay periodical payments in accordance with the requirements of the Employees' Compensation Ordinance (ECO). The employer earlier pleaded guilty at Shatin Magistrates' Courts and was fined $60,000 today (May 25).

     A floorboard worker sustained multiple burn injuries while working on May 15, 2015. The employer failed to pay periodical payments to the employee on the normal paydays or within seven days thereafter as required by the ECO.

     Section 10(10) of the ECO stipulates that during a period of temporary incapacity, the employer shall pay the injured employee periodical payments at the rate of four-fifths of the difference between the employee's monthly earnings at the time of the accident and his or her monthly earnings during the period of temporary incapacity.

     The periodical payments are payable on the injured employee's normal paydays. An employer who, without reasonable excuse, fails to pay within seven days after the due day commits an offence and is liable on conviction to a fine of $100,000.