In the first nine months of this year, the number of employers' convictions for failure to take out employees' compensation insurance policies or failure to produce the policies for inspection reached 701, the Labour Department says.

During the period, 46,960 workplace inspections were conducted to enforce the law.

Senior Labour Officer for Labour Inspection Ip Yee-cheung said today apart from routine checkups, the department had two special inspection campaigns this year to check if employers have taken out employee insurance policies.

From April to June, one targeted the personal-services trade, which operates on a smaller scale, such as beauty salons, hair salons and foot massage shops. The other, from July to August, targeted private tutorial schools during their peak months.

The campaigns covered 4,489 target establishments and 163 employers were found to have contravened the law, Mr Ip said, adding they will be prosecuted.

He reminded employers to take out employees' compensation insurance policies for their employees, including full-time, part-time and casual staff.

Failure to take out insurance can net $100,000 fine

Under the Employees' Compensation Ordinance, an employer is liable to pay compensation if an employee sustains an injury or dies in an accident arising out of and in the course of his employment, or suffers incapacity arising from prescribed occupational illnesses. It also requires employers to take out insurance policies to cover their liabilities under the ordinance and the common law.

Employers failing to take out insurance cover for their employees will face prosecution will be subject to a $100,000 fine and two years' jail.

Mr Ip advised employees to call the hotline, 2815 2200, if they suspect their employers have not taken out insurance cover for them. All complaints will be handled in strict confidence.