XN000022-1995-07-12 — Page 39

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Second, on the percentage reduction in the amount of LSP for employees under 45 years old and with less than 10 years of service, the LAB is against removing it right away as proposed, but has agreed to discuss this matter further. A review is underway and we will be seeking LAB's advice later in the year.

Third, on the proposal to grant LSP to those employees who resign after working for 10 years, the Board has rejected it, on the ground that it goes clearly against fundamental principle of the LSP scheme, which is to provide long-serving employees with financial protection in the event of dismissal, instead of providing employees with compensation upon resignation.

The LAB's consensus regarding each of the above proposals represents a fair balance between the interests of both employers and employees. As such, the Government will support Committee Stage Amendments.

I turn now to the important No 3 Bill. Paid maternity leave for pregnant female employees was first introduced together with employment protection under the Employment Ordinance in 1981. Like the Long Service Payment Scheme, further improvements were made to the relevant provisions in the ensuing years following the broad consensus reached between employer representatives and employees at the LAB. For this reason, the Administration again consulted the LAB on these proposals.

It has long been the Government's intention to improve the package of measures on maternity protection to bring them in line with the relevant International Labour Conventions. To this end, we have recently completed a comprehensive review on all the existing provisions for maternity protection, which include the qualifying service for unpaid maternity leave and for employment protection, arrangements regarding duration of maternity leave and penal damages for wrongful termination of pregnant employees. We have just consulted the LAB last month on a series of recommendations to improve them.

It was in the context of that consultation to these proposals that we sought the LAB's advice on the proposal to give full-pay maternity protection leave to pregnant female employees. The LAB agreed that the rate of maternity leave pay should be increased from two-thirds to four-fifths of the female employees' wages, instead of full-pay, after taking into account the interests of employees, the financial impact on employers, and practices in neighbouring countries. The Administration will support Committee Stage Amendment to the Bill which conforms with the advice reached by LAB.

Thank you.

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End/Wednesday, July 12, 1995