The Labour Department reminds employment agencies to comply with the law after the conviction of the licensee of Wing Shun Employment Agency for overcharging a job seeker.

The employment agency concerned charged the job seeker $1,250 as a placement fee.

The licensee was fined $3,000 and ordered by the Eastern Magistrates Courts to refund the payment received to the job seeker.

According to the Employment Ordinance and the Employment Agency Regulations, employment agency operators are not allowed to charge any reward, payment or other advantage in respect of expenses from a job seeker directly or indirectly in connection with having obtained, obtaining or seeking to obtain employment for him, except a commission of not more than 10% of his first month's salary after a successful placement.

The maximum penalty for overcharging a job seeker is $50,000.

The Employment Ordinance also stipulates that the Commissioner for Labour may refuse to issue or renew, or may revoke a licence if the employment agency operator has contravened any provision of Part XII of the ordinance or the Employment Agency Regulations, or if the operator has been convicted of an offence involving membership of a triad society, fraud, dishonesty or extortion, or if for any other reason, he is not considered a fit and proper person to operate an employment agency.

In 2004, the department revoked eight employment agency licences. Two of them were revoked upon conviction of the licensees for overcharging job seekers.