XN000022-1990-01-10 — Page 3

WEDNESDAY, JANUARY 10, 1990

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BILL INTENDED TO GIVE PROTECTION FOR ALL EMPLOYEES

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AS THE WAGE LEVEL DISTINCTION. BETWEEN MANUAL AND NON-MANUAL EMPLOYEES HAS BECOME OUTDATED UNDER THE EXISTING PROVISION OF THE EMPLOYMENT ORDINANCE, ACTION IS BEING TAKEN TO REMOVE THIS DISTINCTION SO THAT ALL EMPLOYERS WOULD IN FUTURE BE PROTECTED BY THE ORDINANCE.

THE SECRETARY FOR EDUCATION AND MANPOWER, THE HON

K.Y. YEUNG, TOLD THE LEGISLATIVE COUNCIL THIS TODAY (WEDNESDAY) WHEN MOVING THE SECOND READING OF THE EMPLOYMENT (AMENDMENT) BILL 1989.

MR YEUNG EXPLAINED THAT THE EMPLOYMENT ORDINANCE AT PRESENT COVERED ALL MANUAL EMPLOYEES REGARDLESS OF WAGE LEVELS AND NON-MANUAL EMPLOYEES WHOSE MONTHLY WAGES DID NOT EXCEED A WAGE CEILING OF $11,500.

HOWEVER, HE POINTED OUT THAT REMOVING THE DISTINCTION BETWEEN MANUAL AND NON-MANUAL EMPLOYEES WOULD HAVE THE EFFECT OF INCREASING EMPLOYERS' LONG SERVICE PAYMENT AND SEVERANCE PAYMENT LIABILITIES TOWARDS NON-MANUAL WORKERS WHO WERE PAID ABOVE THE CURRENT WAGE CEILING.

"THIS IS UNACCEPTABLE TO EMPLOYERS GENERALLY, ON THE GROUNDS THAT EMPLOYEES WHOSE MONTHLY WAGES EXCEED THE CURRENT WAGE CEILING ARE USUALLY AND ADEQUATELY PROTECTED BY CONTRACTS OF EMPLOYMENT THAT PROVIDE FOR RETIREMENT BENEFITS.

THE

"ACCORDINGLY, THE BILL PROPOSES THAT WAGES IN CEILING SHOULD NOT BE TAKEN INTO ACCOUNT 1N LONG SERVICE PAYMENTS AND SEVERANCE PAYMENTS, HE SAID.

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EXCESS OF THE CALCULATION OF

MR YEUNG ADDED THAT THE BILL ALSO PROPOSED

LIFT THE WAGE CEILING FROM $11,500 TO $15,000, IN LINE WITH WAGE MOVEMENTS SINCE MAY 1987, WHEN THE CURRENT CEILING HAD BEEN FIXED.

ON THE QUESTION OF PROTECTION TOWARDS EMPLOYEES WHO WERE ON CONTINUOUS CONTRACTS OF EMPLOYMENT, MR YEUNG SAID: "AT THE PRESENT TIME AN EMPLOYEE WITH A CONTINUOUS CONTRACT OF EMPLOYMENT

IS DEFINED AS ONE WHO HAS BEEN EMPLOYED FOR FOUR CONSECUTIVE WEEKS, WITHIN WHICH HE HAS BEEN WORKING FOR NOT LESS THAN THREE DAYS A WEEK AND NOT LESS THAN SIX HOURS A DAY.

"THIS RIGID DEFINITION HAS HAD THE EFFECT OF EXCLUDING FROM THE PROTECTION OF THE ORDINANCE MANY PART-TIME EMPLOYEES WHO ARE IN FACT BEING EMPLOYED ON A REGULAR BASIS, SUCH AS HALF-DAY SCHOOL TEACHERS AND PART-TIME WORKERS IN FAST-FOOD SHOPS.

OF CONTINUOUS WORKED FOR CONSECUTIVE

"THE BILL SEEKS TO REVISE THE DEFINITION CONTRACTS OF EMPLOYMENT TO COVER ALL EMPLOYEES WHO HAVE NOT LESS THAN 18 HOURS A WEEK WITHIN A PERIOD OF FOUR WEEKS, SO THAT REGULAR PART-TIME EMPLOYEES WOULD ALSO BE PROTECTED BY THE ORDINANCE.

/MR YEUNG