(7
For discussion
RESTRICTED
on 27th February 1979
27th
Feb
XCR(79)52
Copy No.33 of 80
HKK do!!
MC
MEMORANDUM FOR EXECUTIVE COUNCIL Gere.
EMPLOYMENT (AMENDMENT) (NO 2) BILLI 1979
ви
Miso Witho
For
态
ریال سقانه
проду
IND
Annexed for the consideration of Honourable Member the Employment (Amendment) (No 2) Bill 1979 which seeks to:
(a) extend the application of the Employment Ordinance (Chapter 57) to a higher wage earning class of non-manual workers by raising the existing wage ceiling from $2,000 to $5,000 per month; and
(b) provide that, for the purposes of calculating severance payments only, the wages of non- manual workers will be limited to $3,000 per month or actual wages per month, whichever is the less.
€ MAR 1979
520/3
See @ NKK
1980
23411
Background
2
Up to 1968, employer and employee relationships in Hong Kong were regulated by the Employers and Servants Ordinance which applied to all contracts of service where the cash remuneration did not exceed $700 per month. In 1968 the Employment Ordinance was enacted and the Employers and Servants Ordinance was repealed. Among other changes, the wage ceiling for manual workers was removed, thus giving protection to all manual workers irrespective of their monthly earnings and also enabling Hong Kong to comply with the provisions of International Labour Convention No 95 concerning the protection of wages. However, a wage ceiling for non-manual workers remained; on the basis that wages had doubled since 1953 and that there was a need to restore protection to non-manual workers at about the same level generally applicable in 1953, a wage ceiling of $1,500 per month was fixed. In April 1974 this wage ceiling was further raised to $2,000 per month for similar reasons.
3
Since 1974 money wages have again risen, mainly because of cost of living adjustments. A number of non-manual workers who were previously entitled to the protection and benefits of the Ordinance have now become excluded from its coverage. In the interests of equity a review of the wage ceiling commenced in the latter part of 1977. It is now estimated that the increase in wages between July 1973 (up to which month the basis of calculation for the 1974 revision of wage ceiling was made) and June 1978 was about 54%. Based on
G.S. 84
RESTRICTED