Q3. What will be the consequences if an employer fails to pay wages on time?
A3. An employer should pay wages to an employee when they become due and not later than 7 days from the end of the wage period.
An employer who fails to pay wages to an employee within 7 days after they become due is liable to prosecution and, upon conviction, to a fine of HK$200,000 and to imprisonment for one year.
If an employer fails to pay wages to the employee within 7 days from the day when the wages become due, he is required to pay interest on the outstanding amount of wages to the employee.
If wages are not paid within one month from the due date of payment, an employee may deem his contract of employment to have been terminated by his employer without notice. Under such circumstances, the employer is required to pay wages in lieu of notice in addition to other statutory and contractual benefits to the employee.
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