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Former California Fitness director fined for failing to pay Hong Kong staff

Wong Ping-kuen admitted he defaulted on HK$1.14 million in salary payments last year despite attempt to save the chain

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California Fitness shut shop in July 2016 after encountering financial problems. Photo: Sam Tsang

A former director of shuttered gym chain California Fitness’ parent company was fined HK$202,000 by a Hong Kong court on Tuesday after he admitted defaulting on HK$1.14 million in salary payments to staff last year.

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Wong Ping-kuen, 56, was also ordered to pay outstanding wages of HK$379,000.

He pleaded guilty to 101 summonses of failing to pay wages by the due date, an offence punishable by a HK$350,000 fine and three years in prison.

Eastern Court heard JV Fitness wilfully and without reasonable excuse failed to pay wages totalling HK$1.14 million on time to 99 employees.

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Deputy magistrate Arthur Lam Hei-wei said the courts had a responsibility to safeguard employee benefits.

But he decided against imposing a prison sentence after hearing that Wong had never committed wage-related offences in his 37 years of running a renovation business and was unlikely to reoffend as he would never again operate a business he was not familiar with.

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