XN000022-1988-07-11 — Page 4

MONDAY, JULY 11, 1988

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LAB ENDORSES WIDE RANGE OF LEGISLATION IMPROVEMENTS

THE LABOUR ADVISORY BOARD MET TODAY WIDE RANGE OF LABOUR MATTERS.

(MONDAY) TO CONSIDER ......A

MEMBERS WERE FIRST BRIEFED ON THE CONSULTATIVE DOCUMENTS ON PRUDENTIAL REGULATION OF RETIREMENT SCHEMES BY THE DEPUTY SECRETARY FOR MONETARY AFFAIRS, MR STEPHEN IP.

THEY WERE TOLD THAT THE PAPER WAS AIMED AT ENSURING THAT. IF EMPLOYERS SET UP RETIREMENT SCHEMES, THE SCHEMES SHOULD BB OPERATED ACCORDING TO CERTAIN STANDARDS OF PRUDENCE AND ACCOUNTABILITY FOR THE PROTECTION OF BENEFICIARIES.

IN THE DISCUSSIONS THAT FOLLOWED, VIEWS ON THE DEFINITION. OR RETIREMENT SCHEMES, DISCLOSURE OF PROVISIONS OF THE SCHEMES. TO EMPLOYEE BENEFICIARIES, TRANSFERABILITY OF FUNDS, AND THE ESTABLISHMENT OF A MANAGEMENT COMMITTEE WITH EMPLOYERS' AND EMPLOYERS' PARTICIPATION WERE EXPRESSED.

THE BOARD CHAIRMAN, MR TONY HAMMOND, UNDERTOOK TO PASS MEMBERS' OPINIONS TO THE GOVERNMENT FOR CONSIDERATION.

THE BOARD THEN SUPPORTED A PROPOSAL TO REMOVE THE DISTINCTION BETWEEN MANUAL AND NON-MANUAL EMPLOYEES UPON THE ABOLITION OF THE WAGE CEILING UNDER THE EMPLOYMENT ORDINANCE.

WITH THE REMOVAL OF THE DISTINCTION, ALL EMPLOYEES, IRRESPECTIVE OF THEIR EARNINGS AND NATURE OF WORK, WILL BE SUBJECT PROTECTION UNDER THE EMPLOYMENT ORDINANCE.

ΤΟ

HOWEVER, FOR THE PURPOSE OF CALCULATING SEVERANCE PAYMENT AND LONG SERVICE PAYMENT, THE EXISTING WAGE LIMIT OF $11,500 A MONTH WILL STILL APPLY TO ALL EMPLOYEES. THIS LIMIT WILL BE REVISED FROM TIME

TO TIME TO TAKE INTO ACCOUNT OF WAGE MOVEMENTS.

MEMBERS NEXT STUDIED THREE MINOR AMENDMENTS TO THE EMPLOYMENT

ORDINANCE.

FIRST, ON THE PROPOSAL TO REDUCE THE QUALIFYING SERVICE A FEMALE EMPLOYER MUST WORK BEFORE SIE CAN SERVE MATERNITY LEAVE, MEMBERS' VIEWS WERE DIVIDED.

PERIOD OF NOTICE FOR

EMPLOYEE MEMBERS WERE GENERALLY IN FAVOUR OF THE WHILE SOME EMPLOYER MEMBERS CONSIDERED THE PRESENT REQUIREMENT WEEKS REASONABLE. AFTER DISCUSSIONS, IT WAS DECIDED THAT CONSIDERATION WOULD BE GIVEN TO THE ISSUE.

PROPOSAL OF 26

FURTHER

/AS REGARDS