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WEDNESDAY, DECEMBER 4, 1985
+AS A RESULT, THE DEPOSIT PROVIDED NO PROTECTION FOR POLICY HOLDERS WHEN THE INSURER CONCERNED SUBSEQUENTLY BECAME INSOLVENT, + SIR JOHN SAID.
HE SAID THE BILL SOUGHT TO AMEND THE ORDINANCE BY ADDING A NEW SECTION TO PROVIDE THAT IF THE INSURANCE AUTHORITY REQUIRED AN INSURER TO MAKE A BANK DEPOSIT IN THE NAME OF THE INSURANCE AUTHORITY. TO BE HELD IN TRUST FOR THE INSURER PURSUANT TO A NOTICE ISSUED UNDER THE ORDINANCE, ANY CHARGE OF WHATEVER NATURE CREATED OVER THAT DEPOSIT SHOULD BE VOID AGAINST ALL PERSONS.
+ANY DEPOSIT MADE IS THUS PRESERVED AS A POTENTIAL SOURCE OF EXTRA PROTECTION FOR POLICY HOLDERS, SIR JOHN SAID.
IN ORDER TO HOLD THE INSURANCE AUTHORITY ACCOUNTABLE FOR ITS TRUSTEESHIP OF ANY DEPOSITS HELD BY WAY OF NOTICE UNDER THE ORDINANCE, SIR JOHN PROPOSED THAT THE INSURANCE AUTHORITY SHOULD PREPARE PROPER ANNUAL ACCOUNTS OF ALL DEPOSITS REFERRED TO IN THE NEW SECTION AND SUBMIT A STATEMENT OF THOSE ACCOUNTS TO THE DIRECTOR OF AUDIT FOR HIS EXAMINATION.
EX-GRATIA PAYMENT PROPOSED FOR DISMISSED WORKERS
*****
A BILL REQUIRING AN EMPLOYER TO MAKE, IN CERTAIN CIRCUMSTANCES, A LONG SERVICE PAYMENT TO AN EMPLOYEE WHOSE CONTRACT OF EMPLOYMENT IS TERMINATED BY DISMISSAL WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
SPEAKING AT THE SECOND READING OF THE EMPLOYMENT (AMENDMENT) BILL 1985, THE SECRETARY FOR EDUCATION AND MANPOWER, THE HON NEIL HENDERSON, SAID EMPLOYEES DISMISSED BY REASONS OF REDUNDANCY HAD BEEN ELIGIBLE FOR A SEVERANCE PAYMENT FROM THEIR EMPLOYERS SINCE 1974.
IN THE CASE OF EMPLOYEES WHOSE CONTRACT OF EMPLOYMENT WAS TERMINATED UNDER OTHER CIRCUMSTANCES, HE SAID, THE EMPLOYMENT ORDINANCE MERELY REQUIRED THE SERVICE OF AN AGREED OR STATUTORY PERIOD OF NOTICE OR THE PAYMENT BY THE EMPLOYER OF WAGES IN LIEU OF SUCH NOTICE.
+THE DISPARITY IN THE TREATMENT OF A DISMISSED EMPLOYEE HAS BEEN OFTEN CRITICISED AS UNFAIR, AND ESPECIALLY UNFAIR TO AGE ING EMPLOYEES DISMISSED THROUGH NO FAULT OF THEIR OWN AND WHO HAVE SERVED THE SAME EMPLOYER FOR SEVERAL DECADES.
+MANY OLDER EMPLOYEES AFTER DISMISSAL FIND IT ESPECIALLY DIFFICULT TO SECURE ALTERNATIVE EMPLOYMENT, IN PARTICULAR MANUAL WORKERS, HE SAID.
MR HENDERSON