XN000022-1995-07-27 — Page 29

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Mr Chairman, the Official Members will oppose this amendment, and I urge Members to do likewise.

Mr Chairman,

I move the amendment to sub-clause (1) of clause 6, the addition of sub-clause (1A) to clause 6, the amendments to sub-clause (2), (3) and (6) of clause 6 as set out under my name in the paper circulated to Members.

To clarify our policy intention that it shall be a requirement for all employers and self-employed persons to secure a retirement scheme for their employees or themselves respectively both on and after the appointed day, I am moving an amendment to clause 6(1), and consequential amendments to clauses 6(2) and 6(3).

In response to Members' views that the word "irrevocable" was too restrictive in clause 6(1), I am moving an amendment to delete it.

Members will be aware that Schedule 1 of the Bill as drafted now exempts from the MPF a relevant employee who has been employed under a contract of employment for a continuous period of 30 days. Some Members have suggested that this period should be extended, because the probation period of many jobs often exceeds the first 30 days, or employees may work for 30 days, then give 30 days notice. I agree that the 30 day exemption period can be changed to 60 days. An appropriate amendment will be moved later on to Schedule 1. New clause 6(1A) will provide that if the employee remains in the job longer than 60 days, the employer will have to backdate

in contributions for the entire period, whereas the employee would only pay

respect of the last 30 days. I am also moving related consequential amendments to clauses 6(1) and 6(6).

Three other technical amendments are also being moved in respect of clauses 6(2) and 6(3) to link the contribution amount to the minimum and/or maximum income levels as stated in the Schedules.

Mr Chairman,

I move the amendment to sub clause (7) of clause 6 be amended as set out under my name in the paper circulated to Members.