XN000022-1996-06-28 — Page 10

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provides an additional adjudication channel for payments for employees' compensation claims involving incapacity of an employee for not more than three days by allowing such payments to be recovered as a civil debt in the Small Claims Tribunal, rather than exclusively in the District Court.

Introducing the bills, a government spokesman said the proposals sought to give effect to the results of the reviews the Administration had recently conducted on sickness allowance and compensation for work-related injuries.

"This is in line with the Government's commitment to improve employees' benefits in a way commensurate with the pace of Hong Kong's social and economic development."

The spokesman said the proposals under both Bills had been endorsed by the Labour Advisory Board.

Explaining the proposals regarding sickness allowance, the spokesman said the Administration recently conducted a review, having regard to the International Labour Convention No 130 Medical Care and Sickness Benefits Convention 1969, the sickness benefit provisions of neighbouring countries, and the findings of surveys on the incidence of sick leave taken by employees.

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Under the existing Employment Ordinance, an employee working under a continuous contract for a period of one month or more immediately preceding a sickness day is entitled to the payment of sickness allowance by the employer.

The daily rate of sickness allowance is equal to two-thirds of the wages which the employee would have earned had he been working on the sickness day and no sickness allowance is payable if the sick leave lasts for less than four consecutive days.

"It was concluded that the daily rate of sickness allowance should be increased from two-thirds to four-fifths of an employee's wages, whilst maintaining the existing minimum qualifying requirement of four consecutive sickness days.", the spokesman said.

He pointed out that the rate of sickness allowance was last increased from half pay to two-thirds of wages in 1977, and had since remained at that level.

"The Labour Department would at a later stage conduct a comprehensive review of the other provisions on sickness allowance under the Employment Ordinance, including the qualifying period of sick leave and other related issues," he added,

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