WEDNESDAY, OCTOBER 23,1991
BILL TO FURTHER IMPROVE LONG SERVICE PAYMENT SCHEME I INTRODUCED
THE EMPLOYMENT (AMENDMENT} (LONG SERVICE PAYMENT} BILL 1991, WHICH SEEKS TO FURTHER IMPROVE THE LONG SERVIUR PAYMENT SCHEME BY REDUCING THE DIFFERENTIAL TREATMENT BASED ON AGE, WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
THE SCHEME, WHICH WAS FIRST INTRODUCED IN 1985 AND AMENDED IN 1988, PROVIDED FOR A LUMP SUM PAYMENT TO AN EMPLOYEE WHOSE CONTRACT OF EMPLOYMENT HAD BEEN TERMINATED AFTER WORKING WITH AN EMPLOYER FOR A NUMBER OF YEARS.
THE SECRETARY FOR BILL PROPOSED THE
MOVING THE SECOND READING OF THE BILL, EDUCATION AND MANPOWER, MR JOHN CHAN, SAID THR EXISTING DIFFERENTIAL RATES OF PAYMENT BASED ON AGE SHOULD BE REMOVED OVER A TWO-YEAR PERIOD.
DURING THE FIRST YEAR AFTER THE COMMENCEMENT OF THE BILL, AN EMPLOYEE AGED BELOW 36 WOULD BECOME ENTITLED TO 75 PER CENT OF THE PAYMENT. FROM THE SECOND YEAR ONWARDS, ALL ELIGIBLE EMPLOYEES WOULD BE ENTITLED TO FULL PAYMENT IRRESPECTIVE OF THEIR AGE.
SECONDLY, WE PROPOSE THAT THE QUALIFYING SERVICE FOR THOSE EMPLOYEFS AGED BELOW 45 SHOULD BE REDUCED TO FIVE YEARS SO THAT, IN EFFECT, THE QUALIFYING SERVICE WILL BECOME STANDARDISED TO FIVE YEARS IRRESPECTIVE OF AN PMPLOYEE'S AGE.
"HOWEVER, AN EMPLOYEE WHO DOES NOT HAVE THE QUALIFYING SERVICE UNDER THE EXISTING SCHEME BUT BECOMES QUALIFIED UNDER THIS BILL WILL ONLY BE ENTITLED TO A PERCENTAGE OF LONG SERVICE PAYMENT, DEPENDING ON HIS LENGTH OF SERVICE, HE SAID.
FOR EXAMPLE, MR CHAN SAID AN EMPLOYRE AGED 40 OR BELOW WOULD BE ENTITLED TO 50 PER CENT OF THE PAYMENT 1F HE HAD FIVE YEARS' SERVICE, HIS ENTITLEMENT WOULD BE INCREASED TO 60 PER CENT IF HE HAD SIX YEARS' SERVICE.
HIS PERCENTAGE OF ENTITLEMENT WOULD KEEP ON INCREASING AS HIS LENGTH OF SERVICE INCREASES UNTIL HE WAS ENTITLED TO FULL PAYMENT WHEN HE HAD CLOCKED UP 10 YEARS' SERVICE.
NOTING THAT THE PROPOSAL WOULD ENABLE YOUNGER EMPLOYEES TO BECOMR ENTITLED TO LONG SERVICE PAYMENT EARLIER, MR CHAN SAID EMPLOYEES AGED 45 OR ABOVE WOULD NOT BE AFFECTED.
"ALTHOUGH THERE MAY STILL BE A DIFFERENCE IN THE AMOUNT OF LONG SERVICE PAYMENT RECEIVABLE BY TWO EMPLOYEES OF THE SAME LENGTH OF SERVICE BUT OF DIFFERENT AGES, THE DIFFERENCE WILL BE VERY MUCH REDUCED AS COMPAREN WITH THAT UNDER THE EXISTING PROVISIONS," HE POINTED OUT.
NOTING THAT THE VIEWS OF EMPLOYERS AND EMPLOYERS DIFFERED ON THE WAYS TO IMPROVE THE SCHEME, MR CHAN SAID PROPOSALS IN THE BILL HAD BEEN REACHED AFTER EXTENSIVE CONSULTATION WITH THE LABOUR ADVISORY BOARD.
/"THE SCHEME