Insurance firm charged graduates for instant promotions, union says

University graduates have skipped the ranks and instantly became managers, with an insurance firm accused of charging its employees monthly fees for their desired job titles.

This was among the increasing number of complaints from insurance agents in the city about their employment contracts, a union said.

The Hong Kong Insurance Practitioners' General Union received 13 complaints against the firm in Sheung Wan, which offered new recruits job titles of their choice with the firm, on the condition that they paid a monthly fee. The higher the position, the higher the price was.

The complainants, whose original positions ranged from entry-level financial consultants to managers, were forced to buy a job title from all ranks - from a wealth manager for a monthly HK$2,000 up to regional director for as much as HK$10,000. The union said some employees had left their jobs, regarding the firm with suspicion, but some remained.

'Senior job titles give high credibility to potential clients. They are a boost to the chances of reaching deals,' Andy Fung Chi-yuen, vice-president of the union, said. 'It's unacceptable that the prestigious regional director title can be bought by someone who has no experience.'

He said the firm breached no apparent rules, but its practice 'greatly damaged the industry's reputation'.