• Insights

Online retailer slapped with fine for late payment of wages 

Hong Kong
An online luxury retail company was fined HKD 145,000 by a court in Hong Kong for failing to pay the wages of eleven of its employees on time.

This was a prosecution brought by the Labour Department against the Hong Kong employer for late payment of wages amounting to HKD 690,000. The company pleaded guilty to the offence of failing to make timely payment of its employees’ wages.   

Under Hong Kong law, an employer is required to pay its employees’ wages as soon as they become due and, in any case, not later than seven days following the end of the wage period. A breach of this rule attracts both criminal and civil liability. 

Following the prosecution, the Labour Department warned employers that it will not tolerate late payment of wages to employees and will spare no effort in enforcing the law and safeguarding employees’ statutory rights. The prosecution serves to remind all employers of the importance of making timely wage payments to their employees. 

In this case, the Labour Department only prosecuted the company. The Court’s fine of HKD 145,000 was at the lower end of the scale, as an employer which wilfully and without reasonable excuse contravenes this rule is liable to a maximum fine of HKD 350,000 and imprisonment of up to three years. Where an offence is proven to have been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the company, that individual can also be held personally liable and be imprisoned for the late payment of wages. 

Message for employers

It is important that employers and all officers of an employing entity understand their liability for making payments to employees on time and the legal consequences of any breach of their obligations. 

Jezamine Fewins
Partner - Hong Kong
Lewis Silkin (Hong Kong)
Joanne Chan
Associate - Hong Kong
Lewis Silkin (Hong Kong)