The maximum penalty for wage offences under the Employment Ordinance will be raised on March 30 to a $350,000 fine and three year's jail, from $200,000 and one year's jail.

Permanent Secretary for Economic Development & Labour Matthew Cheung said the increase gives employers a clear message: Wage defaults are a serious offence.

Employers have the statutory responsibility to pay wages on time. According to Sections 23, 24 and 25 of the Employment Ordinance, wages due upon expiry of the last day of the wage period and upon completion or termination of employment must be paid as soon as practicable, but not later than seven days. Any employer who fails to do so wilfully and without reasonable excuse commits an offence.

Mr Cheung stressed the Labour Department takes a serious view of wage defaults. In addition to raising the maximum penalty of wage offences, inspection and vigorous enforcement will continue. Should there be sufficient evidence, offenders will be prosecuted.

As a result of the department's rigorous enforcement, the number of convicted summonses on wage offences rose from 139 in 2002 to 587 last year - registering an increase of more than 320%. In the first two months of this year, 96 convicted summonses have been secured.

Employees who are owed wages should immediately report  this to the department's complaint hotline, 2815 2200.