XN000022-1991-04-15 — Page 2

MONDAY, APRIL 15, 1991

LAB AGREES TO LIFT RESTRICTIONS ON EMPLOYMENT AGENCIES

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THE LABOUR ADVISORY BOARD TODAY (MONDAY) AGREED TO A PROPOSAL TO REMOVE CURRENT RESTRICTIONS ON CHARGES TO EMPLOYERS FOR SERVICES RENDERED BY EMPLOYMENT AGENCIES.

AT ITS MEETING TODAY, MEMBERS OF THE BOARD ACCEPTED THAT THE RESTRICTIONS WERE INCOMPATIBLE WITH THE MODE OF OPERATION OF MODERN EMPLOYMENT AGENCIES.

SINCE THE EMPLOYMENT ORDINANCE WAS AMENDED IN JUNE LAST YEAR TO REMOVE THE WAGE CEILING OF NON-MANUAL LABOUR COVERED BY THE ORDINANCE, MANAGEMENT CONSULTANTS AND HEAD-HUNTING FIRMS HANDLING RECRUITMENTS OF SENIOR STAFF HAVE HAD то OBTAIN EMPLOYMENT AGENCY REQUIREMENTS GOVERNING THEIR

LICENCES AND TO COMPLY WITH THE LEGAL OPERATION.

IT IS A COMMON PRACTICE FOR THESE EMPLOYMENT AGENCIES TO RECOVER FROM EMPLOYERS BEFORE PROCURING AN EMPLOYEE THE AGREED EXPENSES AND OTHER PAYMENTS INCURRED IN CARRYING OUT SUCH ASSIGNMENTS AS ADVERTISING AND TRADE TEST, AND ΤΟ CHARGE PROFESSIONAL FEES AT DIFFERENT STAGES OF THE RECRUITMENT PROCESS.

HOWEVER, THE

THIS TRADE PRACTICE 18 ACCEPTABLE TO EMPLOYERS. EMPLOYMENT ORDINANCE ONLY ALLOWS AN EMPLOYMENT AGENCY ΤΟ CHARGE AN EMPLOYER NOT MORE THAN $35 ON FIRST REGISTRATION, AND $20 ON RENEWAL OF SUCH REGISTRATION, PLUS A COMMISSION UPON SUCCESSFUL PROCUREMENT OF AN EMPLOYEE.

ARE

OPERATIONAL EXPERIENCE SHOWS THAT EMPLOYERS

WELL CAPABLE OF NEGOTIATING A FAIR DEAL WITH EMPLOYMENT AGENCIES IN THIS HIGHLY COMPETITIVE TRADE.

REFERRING TO A SUGGESTION BY EMPLOYEES' REPRESENTATIVES TO UPGRADE THE STATUS OF THE LAB, THE CHAIRMAN OF THE BOARD, MR DARWIN CHEN, WHO IS ALSO THE COMMISSIONER FOR LABOUR, SAID THE GOVERNMENT DID NOT INTEND TO INTRODUCE ANY CHANGES AT PRESENT TO THE COMPOSITION OF THE BOARD WHOSE CURRENT MEMBERS WERE APPOINTED ONLY AT THE BEGINNING OF THIS YEAR.

MR CHEN ADDED THAT THE GOVERNMENT PLANNED TO REVIEW BOTH THE COMPOSITION AND THE TERMS OF REFERENCE OF THE LAB AFTER THE CURRENT BOARD HAD BEEN IN SESSION FOR ABOUT A YEAR.

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