Employer fined HK$79,000 for contravening Employees’ Compensation Ordinance

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4th August 2022 – (Hong Kong) Hung Lee Crane Transportation Limited was prosecuted by the Labour Department (LD) for violation of the requirements under the Employees’ Compensation Ordinance (ECO). The company was convicted at Kowloon City Magistrates’ Courts today and was fined HK$79,000.

A crane driver employed by the company fell from a tailboard of a truck to the ground and sustained a back injury while working on 30th November, 2019. His company failed to pay periodical payments to him during the injured employee’s period of temporary incapacity on normal paydays or within seven days thereafter as required by the ECO, the amount of which should have been at the rate of four-fifths of the difference between the employee’s monthly earnings at the time of the accident and his monthly earnings during the period of temporary incapacity. Moreover, the company also failed to take out an employees’ compensation insurance policy for the employee.

 “The ruling helps disseminate a strong message to all employers that they have to pay periodical payments to injured employees within the statutory time limit stipulated in the ECO and are required to take out insurance policies for all their employees to cover their liabilities both under the ECO and common law for injuries at work,” an LD spokesman 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.

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