0003230
G.F. 323
CONFIDENTIAL
concerning the place at which or the manner in which wages may be paid. Section 17 protects an employee's complete freedom over the manner in which he disposes of his earnings. Section 18 pormits an employer to establish shops and stores for the convenience of his employees but protects an employee from being compelled to make use of them. Section 19 restricts the deductions which may be made by an employer from the wages of his employee. Sections 20 to 22 give effect to those provisions of Convention number 95 which require that an onployee should be appropriately informed in an easily understandable manner of the wages he receives before employment, at any subsequent time when paid wages, and at any other ti se when items making up his wages are changed. Employees must also be informed of the nature and reason for any deductions from wages.
An obligation is placed on the employer to provide such information in writing at the written request of the employee. Section 23 requires any class of employer to keep adequate records of wages if required by the Commissioner of Labour. Section 24 empowers the Commissioner of Labour to specify forms or records required for the purposes of the ordinance. Section 25 authorizes the Commissioner of Labour to require employers to make returns to him.
5.
The third major part concerns employment agencies. Section 26 maintains the existing prohibition on any operation undertaken with the object of obtaining or supplying the labour of persons who do not spontaneously offer their services to an employer direct or to a registered employment agency. Section 27 allows any person to advertise the existence of vacancies for employment. The Commissioner of Labour may make, under section 28 certuin regulations to control the activities of registered employment agencies. These regulations can set out the procedure for registration and the conditions under which registration may be granted or withdrawn. l'alpractices by employment agencies are known and it is intended, for example, to prohibit registration fees on the mere understanding that the agency will endeavour to obtain erployment with no guarantee of doing so and no provision for refund if it fails. Section 26 is so phrased that it covers agencies making placements for employment both in Hong Kong and overseas. In consequence, some provisions of the Contracts for Overseas Employment Ordinance, listed in the Second Schedule, can be repealed.
6.
The remaining provisions of the draft bill deal with offences and penalties and miscellaneous matters.
7.
The bill should promote better relationships between labour and management and narrow the field of possible causes of disputes. It is likely to encourage the greater use of written terms and conditions of employment. It may also result in the adoption of contracts of service based on a week as the normal contractual period. It will make it necessary for employers to pay careful attention to the maintenance and preservation of accurate records of service of employees. Good employers should find no difficulties in complying with the provisions of the bill because they embody practices followed by enlightened managenent. It is the firm belief of all officers of the Labour Department that the bill should greatly reduce the number of problems with which they are called upon to deal and which arise over contracts of services and wages.
8.
Members will be invited to endorse in principle the proposals incorporated in the provisions of the attached draft of the Employment Bill.
enclosure.
26th February 1968
REL/LEG/POLII
CONFIDENTIAL