Employment ❘ 137
Employees' Rights and Benefits
The Employment Ordinance provides for various employment-related benefits and entitlements to employees. Over and above the statutory requirements, employers and employees are free to negotiate the terms and conditions of employment.
Labour Conditions
In general, children under 15 are prohibited by law to take up employment. However, under strict rules, children aged between 13 and 14 may work in non- industrial establishments, while young people in the 15-17 age group may work in industrial establishments, subject to regulations governing their working hours.
Labour inspectors conduct workplace inspections to ensure employers' compliance with laws safeguarding the rights and benefits of workers, and that employers possess employees' compensation insurance. Labour inspectors also check employees' proof of identity and work with the Police and the Immigration Department to combat illegal employment. During the year, 193 operations were carried out jointly by the three departments.
Enforcement Against Wage Offences
The Labour Department takes strong enforcement action against employers who fail to pay wages due to their employees. It also takes steps to prevent wage defaults. The department secured convictions for 876 summonses relating to wage offences during the year. Two company management staff and two employers were jailed or given suspended sentences, and one company management staff and two employers were ordered to perform community service as a result of wage defaults.
In addition, employers who wilfully and without reasonable excuse, fail to pay. their employees the wages, or some other entitlements, awarded by the Labour Tribunal or Minor Employment Claims Adjudication Board are liable to criminal prosecution under the Employment Ordinance.
In 2011, the department secured convictions for 35 summonses relating to default of awards made by the Labour Tribunal or Minor Employment Claims. Adjudication Board.
Protection of Wages on Insolvency Fund
The Protection of Wages on Insolvency Fund provides ex gratia payment to employees who are owed wages and other termination benefits by insolvent employers. Its funds come mainly from an annual levy of $450 imposed on business registration certificates. The fund covers arrears of wages not exceeding $36,000 accrued during a period of four months preceding the applicant's last day of service; wages in lieu of notice of termination of employment of up to $22,500 or one month's wages, whichever is less; and severance payment of up to $50,000 plus 50 per cent of any entitlement in excess of $50,000. The maximum amount of ex gratia payment per eligible worker is $278,500.