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Employment agency fined $16k for attempting to overcharge FDH

18 March 2024

 

Overcharging jobseekers is prohibited by law & the Code of Practice for EAs 

Two staff members of an employment agency were fined a total of $16,000 at Eastern Court today, after being found guilty of attempting to overcharge a foreign domestic helper.

According to a press statement issued by the Labour Department, accused were the licensee and an associate of the licensee of Saiko Hong agency, located in Sheung Wan.

They were prosecuted after an FDH complained in September 2022 about being charged an excessive commission by the two, in violation of both the Employment Ordinance and the Crimes Ordinance.

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An investigation reportedly showed that the two accused did attempt to overcharge the FDH, so the Labour Department decided to prosecute. However, no mention was made of the amount involved.  

Under the Employment Ordinance, a licensee of an employment agency, his/her associate, or a person purporting to act in such capacities, is not allowed to collect more than 10 per cent of jobseeker’s first monthly salary.

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The maximum penalty for overcharging a job seeker, or operating an unlicensed employment agency, is a fine of $350,000 and imprisonment for three years.

The LD warns all employment agencies to fully comply with the law as well as the Code of Practice for EAs at all times to avoid prosecution and/or revocation of their licence.

PINDUTIN ITO

Any agency-related inquiries or complaints about malpractices of EAs may be directed to the Employment Agencies Administration by calling 2115 3667, e-mailing ea-ee@labour.gov.hk, or visiting its office at Unit 906, 9/F, One Mong Kok Road Commercial Centre, 1 Mong Kok Road, Kowloon.

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