Employment agency loses licence over bid to overcharge FDH

Job hunters at a job fair: it is illegal to charge them more than 10% of their first monthly salary

A failed attempt to charge a foreign domestic helper excessive fees resulted in an employment agency being stripped of its licence by the Labour Department.

 A press release issued by the Department yesterday, November 25, identified the agency as Saiko Hong in Sheung Wan.

The licence revocation followed the conviction on March 18 of the agency’s licensee, as well as an associate, on a charge of attempting to overcharge an FDH, which is a violation of both the Employment Ordinance and the Crimes Ordinance.

The two were fined a total of $16,000 at Eastern Magistrate’s Court as penalty.

Basahin ang detalye!

Labour decided to prosecute the two after investigating a complaint filed by an FDH against Sai Hong in September 2022, and finding sufficient evidence to support a charge.

Under the Employment Ordinance, an agency’s licensee,  his/her associate or a person purporting to act in such capacities, is not allowed to collect from a job seeker any fees or charges other than the prescribed commission, which is an amount not exceeding 10 per cent of the first month's salary of the job seeker upon successful placement.

Failure to abide by the Ordinance, as well as the Code of Practice for EAs at all times may lead to prosecution, and/or revocation of the agency’s licence.

The maximum penalty for operating without a licence or overcharging a job applicant is a fine of $350,000 and imprisonment of three years.

Also under the EO, the Commissioner for Labour (the Commissioner) may revoke an agency’s licence when there are reasonable grounds to believe that the licensee or an individual employed by the licensee, has contravened any provision of Part XII of the EO or any regulation made under section 62 of the EO.

The Commissioner may also refuse to issue or renew a licence, on the same ground.

Anyone who is charged more than the legally stipulated amount, or wants to report a suspected violation by an agency, may contact the Employment Agencies Administration at telephone number 2115 3667; email: ea-ee@labour.gov.hk; or report directly to Unit 906, 9/F, One Mong Kok Road Commercial Centre, 1 Mong Kok Road, Kowloon).

The Department reminded operators of employment agencies to always comply with the law and the requirements of the CoP at all times, when conducting their business.

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