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December 9, 2015

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HR boss jailed for not paying workers

THE owner of a human resources company was sentenced to one-and-a-half years in jail yesterday for failing to pay the salaries of 146 employees.

Qiao Jianwen, 47, was the owner of Shanghai Chengchen Human Resources Service Co, which had been cooperating with Pepsi for seven years. He was known to pay his employees on time.

But earlier this year, Qiao needed money to buy a house, for which, he used funds from the company. Trouble started when he needed cash to run the company. In his desperation, he borrowed from loan sharks at high interest rates, and his debts mounted.

On May 15 this year, Pepsi put in around 600,000 yuan (US$93,472) into the company’s account as April wages and social security for the workers. Instead of paying his employees, Qiao used the money to clear his debts.

With Qiao now unable to pay the workers, they filed a complaint with the district human resources and social security bureau. After investigation, the bureau ordered Qiao to pay back the wages within three days, which he wasn’t able to do.

On September 8, Qiao surrendered to police and the following month his house was seized. In court, Qiao appealed for a shorter jail term so that he could raise the money and pay off the dues. But the Minhang District People’s Court was having none of it and sentenced Qiao to a year-and-a-half in jail and a fine of 50,000 yuan.

Most of Qiao’s workers are migrants. With Spring festival approaching, the bureau used money from its funds to pay the wages. It plans to retrieve the money by auctioning off Qiao’s property.



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