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WEDNESDAY, JULY 1, 1987
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CAUTION URGED ON INSOLVENCY FUND
ANY ESTIMATES OF BOTH INCOME AND EXPENDITURE OF THE PROTECTION OF WAGES ON INSOLVENCY FUND MUST BE TREATED WITH SOME CAUTION, ALTHOUGH ITS FINANCIAL POSITION IS HEALTHY DURING ITS TWO YEARS OF OPERATION, THE HON HO SAI-CHU SAID IN THE
COUNCIL TODAY (WEDNESDAY).
LEGISLATIVE
SPEAKING AGAINST THE PROPOSAL PUT FORWARD BY THE HON SZETO WAH AT COMMITTEE STAGE TO EXTEND THE FUND TO COVER ONE MONTH'S WAGES IN LIEU OF NOTICE, MR HO SAID THIS WAS IN VIEW OF THE LIMITED EXPERIENCE TO DATE OF THE OPERATION OF THE FUND AND THE NEED TO ENSURI THAT ADEQUATE RESERVE MIGHT BE ACCUMULATED TO MEET OTHER POSSIBLE EXTENSIONS IN ITS SCOPE AND ANY UNFORESEEN DEMANDS ON THE FUND'S RESOURCES IN THE FUTURE.
HE ALSO SAID THE PROVISION FOR A LIMIT OF SEVEN DAYS' KAGES WAS CONSISTENT WITH THE MINIMUM PERIOD OF NOTICE AS STIPULATED IN
THE EMPLOYMENT ORDINANCE AND THAT WAS ALREADY APPLICABLE TO MORE THAN 60 PER CENT OF THE WORKERS IN HONG KONG.
HE SAID ALTHOUGH THE MAJORITY OF THE EMPLOYER REPRESENTATIVES ON THE LABOUR ADVISORY BOARD WERE IN FAVOUR OF EXTENDING THE SCOPE OF THE FUND TO COVER SEVEN DAYS' WAGES IN LUIE OF NOTICE, THEY KERE NOT IN FAVOUR OF ANY FURTHER EXTENSION ON THE GROUND THAT THIS WENT BEYOND THE INTENTION OF THE ORIGINAL PROVISIONS OF THE ORDINANCE WHICH LIMITED ANY EX-GRATIA PAYMENT TO AN AMOUNT EQUIVALENT ΤΟ FOUR MONTHS' WAGES OR $8,000, WHICHEVER WAS THE LESSER.
"I WISH ΤΟ STRESS THAT IT NEVER WAS THE INTENTION THAT WORKERS BE PAID IN FULL OUT OF THE FUND ALL THAT MAY BE DUE TO THEM ON THE INSOLVENCY OF THEIR EMPLOYERS.
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"AT ANY RATE, AS THE MATTER IS TO BE YEAR'S TIME, I FEEL WE SHOULD WAIT UNTIL FURTHER EXTENSION IS JUSTIFIED, HE ADDED.
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SUBJECT TO A REVIEW IN A THEN TO SEE WHETHER A
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