Employer fined for violation of Employees’ Compensation Ordinance

     The Labour Department (LD) launched a prosecution against an employer for failing to pay periodical payments in accordance with the requirement of the Employees' Compensation Ordinance (ECO) for an employee who suffered injuries at work. The employer pleaded guilty at Eastern Magistrates' Courts today (December 11) and was fined a total of $54,000.

     A blacksmith fell from height and sustained multiple injuries while working on January 22, 2017. His employer failed to pay periodical payments to him 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.

     "The ruling helps disseminate a strong message to all employers that they have to pay periodical payments to employees within the statutory time limit stipulated in the ECO," a spokesman for the LD said.
 
     "The LD will not tolerate these offences and will continue to make dedicated efforts in enforcing the law and safeguarding employees' statutory rights," the spokesman added.