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TUESDAY, MARCH 15, 1994

EMPLOYEES MUST BE INSURED

*

OF

THE LABOUR DEPARTMENT TODAY (TUESDAY) REMINDED ALL EMPLOYERS THE REQUIREMENT TO TAKE OUT INSURANCE POLICIES FOR THEIR EMPLOYEES UNDER: THE EMPLOYEES' COMPENSATION ORDINANCE OR THEY WELL FACE HEAVY PENALTIES.

THE ADVICE FOLLOWED RECENT CASES AT THE SHA TIN MAGISTRACY IN WHICH THREE ESTABLISHMENTS WERE EACH FINED $10,000 FOR FAILING TO TAKE OUT INSURANCE POLICIES FOR THEIR EMPLOYEES.

DURING ROUTINE INSPECTIONS, LABOUR INSPECTORS FOUND THAT THE DOMINA HAIR DESIGN AT CITY ONE, SHA TIN, AND THE SHUN LUEN ENGINEERING COMPANY AT FO TAN HAD NOT TAKEN OUT INSURANCE FOR THREE EMPLOYEES ONE EMPLOYEE RESPECTIVELY.

AND

THE OTHER OFFENCE WAS DETECTED AFTER AN EMPLOYEE OF A CANTEEN AT FO TAN WAS INJURED DURING A FIRE.

IN

BY

SECTION 40(1) OF THE ORDINANCE STIPULATES THAT NO EMPLOYER SHALL EMPLOY ANY EMPLOYER IN ANY EMPLOYMENT UNLESS THERE IS FORCE IN RELATION TO SUCH EMPLOYEE A POLICY OF INSURANCE ISSUED AN INSURER FOR THE FULL AMOUNT OF THE LIABILITY OF EMPLOYER UNDER THE ORDINANCE AND INDEPENDENTLY OF THE ORDINANCE ANY INJURY TO SUCH EMPLOYEE BY ACCIDENT ARISING OUT OF AND IN COURSE OF HIS EMPLOYMENT.

THE

FOR

THE

"IN OTHER WORDS, ALL EMPLOYERS ARE REQUIRED TO TAKE OUT INSURANCE POLICIES TO COVER THEIR FULL LIABILITIES UNDER THE EMPLOYEES' COMPENSATION ORDINANCE AND COMMON LAW, SENIOR LABOUR OFFICER (LABOUR INSPECTION), MR CHAN KWOK-KUEN, SAID.

"I

MR CHAN SAID AN INSURED EMPLOYER IS REQUIRED TO DISPLAY, IN A CONSPICUOUS PLACE OF THE WORKPLACE, A NOTICE SHOWING THE NAME OF

THE EMPLOYER AND THE NAME OF THE INSURER.

"OTHER DETAILS SHOULD INCLUDE THE POLICY NUMBER, THE DATE OF ISSUE OF THE POLICY, THE COMMENCEMENT AND EXPIRY DATES OF THE INSURANCE PERIOD, AS WELL AS THE NUMBER OF EMPLOYEES INSURED," HR ADDED.

MR

CHAN STRESSED THAT LABOUR INSPECTORS WERE DETERMINED ΤΟ PROTECT WORKERS' RIGHTS AND BENEFITS.

"THEY WILL NOT HESITATE TO TAKE OUT PROSECUTION AGAINST BLATANT OFFENDERS, HE SAID.

H

LAST YEAR, A TOTAL OF 331 CONVICTIONS WERE RECORDED FOR OFFENCES OF FAILURE TO TAKE OUT POLICY OF INSURANCE FOR EMPLOYEES.

THE MAXIMUM PENALTY, ON SUMMARY CONVICTION, IS A FINE OF $20,000 AND IMPRISONMENT FOR ONE YEAR.

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