JOINT ASSOCIATIONS COMMITTEE ON EMPLOYER/EMPLOYEE RELATIONS

The Hon Commissioner for Labour,

Labour Department,

Lee Gardens,

Hysan Avenue,

Hong Kong

Dear Sir,

The Green Paper

Appendix II

4 April 1978.

Help Those Least

Able to Help Themselves

The Joint Associations Committee have considered the

proposals covering "Sickness, Injury & Death Benefit Scheme" set out in Chapter 8 of the above Green Paper.

In general we feel that there is insufficient detail contained in the paper on which to make detailed comment, but have nevertheless come to some conclusions which are set out below.

1) We are sympathetic to the principle that there

should be financial protection against sickness and death for all workers.

2) We are opposed to a voluntary scheme. We believe that this is against insurance principles and will tend tg attract only those persons most likely to benefit.

3) We also think that a voluntary scheme would be complicated and consequently very expensive to administer.

4) Consideration may be made to the possibility of

introducing additional sickness benefits into the Employment Ordinance, covering the proposals made in the Green Paper. Cost would be for the employer.

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5) Also consideration to a death in employment scheme

(other than accident) a scheme which allows the family of a worker who dies under the age of 65 to be paid, say, one month's salary for each year under 65, e.g. if he died at 35, his family would receive 30 months' salary.

6) We do not at this juncture support a provident fund

scheme without a very careful actuarial study. A very serious problem would be: how members of a provident fund scheme still in employment be awarded if at all should China invoke the 1997 treaty date.

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