XN000022-1993-12-03 — Page 10

FRIDAY, DECEMBER 3, 1993

ENQUIRIES CAN BE MADE AT

THE TRADE

COMMODITIES

STRATEGIC

SECTION, DEPARTMENT TOWER, 700 NATHAN

TRADE DEPARTMENT, FIFTH FLOOR, ROAD, MONG KOK, KOWLOON OR ON TEL 398 5580 OR 398 5572.

THE DEPARTMENT WILL ALSO INFORM AMENDED SCHEDULES BY CIRCULAR.

0

TRADERS

OF DETAILS OF THE

EMPLOYMENT (AMENDMENT) (NO.2) BILL 1993 GAZETTED

THE EMPLOYMENT (AMENDMENT) (NO.2) BILL 1993, WHICH SET OUT PROPOSALS TO IMPROVE AN EMPLOYEE'S ENTITLEMENT TO SEVERANCE PAYMENT AND LONG SERVICE PAYMENT, WAS GAZETTED TODAY (FRIDAY).

NOTING THAT THE AMENDMENT BILL HAS RECENTLY BEEN ENDORSED BY THE GOVERNOR IN COUNCIL, AN ASSISTANT COMMISSIONER FOR LABOUR, MR ALFRED CHAN, SAID ONE OF THE PROPOSALS WAS TO REMOVE THE CEILING OF 12 MONTHS' WAGES IN THE CALCULATION OF THESE TWO TYPES OF PAYMENT.

AT PRESENT, AN EMPLOYEE'S ENTITLEMENT ΤΟ SEVERANCE PAYMENT AND LONG SERVICE PAYMENT IS CALCULATED AT THE RATE OF TWO-THIRDS OF A MONTH'S WAGES FOR EACH YEAR OF HIS SERVICE.

THE MAXIMUM CEILING OF HIS ENTITLEMENT IS THE TOTAL AMOUNT OF WAGES HE EARNED DURING THE PERIOD OF 12 MONTHS IMMEDIATELY PRECEDING THE DATE OF DISMISSAL, OR THE SUM OF $180,000, WHICHEVER IS THE LESS.

"THIS ARRANGEMENT HAS THE EFFECT OF LIMITING THE SERVICE OF AN EMPLOYEE TO 18 YEARS," MR CHAN SAID.

RECKONABLE

AS A MOVE TO ADDRESS THE GRIEVANCES OF LONG SERVING EMPLOYEES FOR BEING UNABLE TO EARN SUCH PAYMENTS BEYOND 18 YEARS OF SERVICE, MR CHAN SAID THE CEILING OF 12 MONTHS' WAGES SHOULD BE REMOVED, BUT THE MAXIMUM PAYMENT OF $180,000 BE RETAINED.

HE ADDED THAT THE MAXIMUM PAYMENT WOULD PERIODICALLY.

BE REVIEWED

IN ORDER TO CUSHION FINANCIAL IMPACTS ON EMPLOYERS, IT WAS ALSO PROPOSED THAT ONE-HALF OF AN EMPLOYEE'S SERVICE OVER AND ABOVE 18 YEARS ACCRUED BEFORE THE AMENDMENT COMES INTO OPERATION WILL BE RECOGNISED IN CALCULATING THE PAYMENTS.

IN ANOTHER PROPOSED AMENDMENT TO THE EMPLOYMENT ORDINANCE (EO), MR CHAN SAID THE LABOUR DEPARTMENT PROPOSED THAT LATE PAYMENT OF MATERNITY LEAVE PAY SHOULD BE AN OFFENCE LIABLE TO A MAXIMUM FINE OF $10,000 UPON CONVICTION,

MR CHAN SAID SECTION 12(1) OF EO PROVIDED THAT A FEMALE EMPLOYEE WHO HAD BEEN EMPLOYED BY THE SAME EMPLOYER UNDER A CONTINUOUS CONTRACT FOR A PERIOD OF NOT LESS THAN 26 WEEKS SHOULD BE ENTITLED ΤΟ MATERNITY LEAVE.

"HOWEVER, THE LAW IS SILENT ON HOW TO COUNT THE 26 WEEKS ALTHOUGH IT IS ONLY LOGICAL THAT IT SHOULD BE COUNTED BACKWARDS FROM THE EXPECTED DATE OF COMMENCEMENT OF MATERNITY LEAVE.

/THEREFORE, WE

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