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MEMORANDUM FOR EXECUTIVE COUNCIL
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EMPLOYMENT AMENOMAT) 079
Annexed for the consideration of Honourable Members is the Employment (Amendment) Bill 1979 which seeks to amend the paid annual leave provisions in the Employment Ordinance (Chapter 57) with a view to clarifying the Government's original intentions and preventing evasion of those provisions.
Background
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Under Part VIIIA of the Employment Ordinance, which came into operation on 1st January 1978, all employees covered by the Ordinance are entitled to 7 days' annual leave with pay for each period of 12 months employment under a continuous contract. This paid leave has to be granted by the employer within the period of 12 months following that period of employment.
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These provisions have now been in operation for over a year, and the Commissioner for Labour has carried out a review of
their operation. Overall, the paid annual leave scheme has worked well; employees in general have welcomed its introduction and most employers have readily complied with the spirit of the law. How- ever, a few employers have attempted to evade their obligations. A number of disputes have arisen and the Labour Relations Service of the Labour Department has had to concilliate and explain to the parties concerned what the law intended and how it should be complied with.
Proposed amendments
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Based on the experience of the Labour Relations Service, the following minor amendments are proposed:
(a)
To replace section 41A (4) so as to ensure that any "statutory holiday/alternative holiday/ substituted holiday" falling within the 7 consecutive days of annual leave will be granted separately (Clause 2(b)). This will mean that failure of the employer to grant an employees the further substituted holiday
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