A suspended jail sentence has been imposed for the first time on a director of an insolvent company for wage offences. Restaurant operator Chan Wing-fai was sentenced to one month in jail, suspended for two years, at Kowloon City Magistracy today, after being convicted of wage offences under the Employment Ordinance. He was also ordered to pay outstanding wages.

Chan is a company director of Wealth Rainbow Enterprises, which operated and closed three restaurants, To Yuen, Sheung Hei and Sun Hei, consecutively at the same premises from August 2003 to April 2004, without clearing wages and termination payments to employees.

Permanent Secretary for Economic Development & Labour Matthew Cheung welcomed the sentence, saying it will deter unscrupulous employers from defaulting on wage payments. He said it sends a strong message that it is a company director's personal responsibility to ensure wages are paid to employees in accordance with the Employment Ordinance.

"The Labour Department will keep up its efforts to tackle wage offences to protect the interests of workers," Mr Cheung said.

"An employee should protect one's own interests and come forward as a witness if the employer and company director defaults on wage payments. We will not hesitate to take prosecution action if there is sufficient evidence and the worker is willing to testify in court."