CONFIDENTIAL

XCC(73)73

- 2 -

機密

3

Broadly speaking, these proposals may now be regarded as having been agreed by the employers' associations and the Labour Advisory Board, though the Chinese Manufacturers' Association refrained from commenting on whether the scheme should apply 'across the board', be restricted to the industrial sector or should exclude small employers. However, the remaining three associations favoured application across the board, although the Employers Federation of Hong Kong suggested a phased programme which would initially limit the application of the scheme to the industrial sector and subsequently extend it to all employers as soon as possible thereafter.

4

The Labour Advisory Board agreed with the proposals set out in paragraph 2 above. Members unanimously advised that the Scheme should be applied 'across the board' but that the rate of one-third of a month's pay for every year of continuous service should apply only to monthly paid workers and that daily or piece rated workers should receive ten days pay for every year of continuous service.

5

It would now appear that there is sufficient support for the proposed scheme, and sufficient agreement on the form that it should take, to enable work to commence immediately on the preparation of the necessary legislation. It is proposed therefore that a Bill should now be prepared and published, and the views of the general public sought. It is suggested that this should be done by publishing the Bill in the Gazette two months in advance of its introduction into the Legislative Council. The proposals would be widely publicised during this period and public reactions could then be assessed.

6

(a)

(b)

(c)

Honourable Members will be asked to advise whether:

a Bill should now be prepared as soon as possible to provide for a severance pay scheme along the lines set out in paragraph 2 above;

the scheme should apply 'across the board' to all employees who benefit from the provisions of the Employment Ordinance, in accordance with the advice of the Labour Advisory Board and the Employers' Associations;

the rate of severance pay for daily or piece-rated

workers should be ten days pay for every year of

continuous employment subject to the other conditions listed at paragraph 2 above; and

CONFIDENTIAL

機密

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