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The Employment Ordinance provides that an employer must pay wages within 7 days of the date they become due or within 7 days of the termination of employment. An employer who willfully and without reasonable excuse fails to make such payments within this period commits a criminal offence, which upon conviction, can lead to a fine up to HK$350,000 and possible imprisonment for 3 years. In our experience, rarely does the threat of criminal sanctions force an employer to make the payments that are due and owing. In practice, the unpaid individual must still be proactive and seek to recover the monies they are owed via the Labour Department or the Labour Tribunal. Once proceedings are issued, the Labour Department may notify the employer of the potential criminal sanctions or even take the first steps in bringing a criminal prosecution against the directors or other responsible persons of the company. Practically, individuals who have not been paid by their employers or former employers should be prepared to take positive action to recover these monies via the Labour Department and/or Labour Tribunal. To assist them in their case, individuals, especially those who work irregular hours or receive commission only salaries, should keep proper record of their hours of work and the payments they have received. OLN’s Employment team regularly advises clients on all aspects of employment law and provides strategic support to assist clients in achieving their aims in a speedy and cost effective manner. |