bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Tougher penalties proposed for bosses who fail to pay their workers  include a maximum of three years in jail and fines of up to $350,000.

The proposals were announced yesterday by the government, its latest response to the public outcry over employers' treatment of staff.

The maximum punishment at present is $200,000 and a year in jail.

The proposal would bring the penalties for non-payment of wages into line with those for hiring illegal workers.

Matthew Cheung Kin-chung,  the permanent secretary for economic development and labour, said the government was pushing for stiffer penalties 'because of grave community concern over wage offences and abuse of the insolvency fund'.

'We thought it would send a very strong message to the community that it doesn't pay to not pay wages to employees,' he said.

The proposal received backing yesterday from the board that oversees the Protection of Wages on Insolvency Fund, from which workers can claim back-pay if their employer has gone bankrupt.

Directors of some companies in the catering industry have been accused of abusing the fund recently by shutting their businesses and declaring they do not have money to pay their workers, then opening for business soon afterwards under another name and often in the bankrupt restaurant's premises.

Recent restaurant closures have left hundreds of workers without pay.

Ho Sai-chu, chairman of the insolvency fund board, said he supported the proposal because it would deter bosses from committing the offence.

'I think businesspeople would be afraid of being jailed,' he said.

But labour activists said more needed to be done. They want restaurant owners to put in bank guarantees before opening their businesses.

This would provide funds to pay workers if the company fell behind on paying salaries.

Another option was imposing this requirement only on restaurateurs with a history of going to the insolvency fund.

Legislator Chan Yuen-han, of  the Federation of Trade Unions, said she agreed harsher penalties were needed,  but that they should  be coupled with bank guarantees.

'The situation has become quite ridiculous and there are many ways in which employers have been able to avoid jail,' she said.

Mr Cheung said officials would study the bank guarantee proposal, but would first work on increasing the penalties for wage offenders. He plans to take the proposal to the Labour Advisory Board, which reviews labour policies, before sending it to the Legislative Council's manpower panel in October.

Mr Ho said the number of businesses going bankrupt and leaving workers without pay had declined recently because of the improving economy.

About 5,800 workers applied for assistance from the fund in the first half of this year, a drop of 19 per cent from the same period last year, when 7,100 people sought help.



Bosses who don't pay wages face three years' jail, big fine