XN000022-1997-03-04 — Page 2

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Legislative proposals to strengthen employment protection

The Government has proposed a package of legislative measures to strengthen protection of employees against unreasonable termination of employment or variation of the terms of employment contracts and to give effect to a review of Hong Kong's labour relations system.

The opportunity has also been taken to clarify the statutory entitlement of employees on fixed-term contracts to long service payments under the Employment Ordinance.

The proposals are contained in the Employment (Amendment) (No. 2) Bill 1997, Labour Relations (Amendment) Bill 1997 and Trade Unions (Amendment) (No. 2) Bill 1997 which will be gazetted this Friday (March 7) and introduced into the Legislative Council on March 19.

Speaking at a press conference today (Tuesday), Deputy Secretary for Education and Manpower, Mr Matthew Cheung Kin-chung explained that these proposals aimed at improving the labour relations system, as well as employees' rights and benefits. The proposals had all been endorsed earlier by the Labour Advisory Board.

According to Mr Cheung, the Employment (Amendment) (No. 2) Bill aimed at preventing unscrupulous employers from evading or reducing their liabilities to pay severance payment (SP) and long service payment (LSP) by terminating the employment of employees, or varying the terms of employment contracts, without valid reasons.

"The most common practices adopted by unscrupulous employers are to dismiss without cause an employee who is about to have five years of service in order to prevent him from qualifying for LSP, to vary an employment contract to become separate short-term contracts so that the employee can never attain the qualifying service, or to replace a contract of employment by a contract for services in order to exclude the employee from the coverage of the Employment Ordinance.

"The bill also seeks to enable employees who are dismissed on the ground of pregnancy, sick leave, exercise of trade union rights and giving evidence in proceedings for the enforcement of labour legislation-- dismissals prohibited by law (or unlawful dismissals)-- to lodge a civil claim against their employers for remedies. The remedies for such claims include reinstatement or re-engagement, pro-rata terminal payments and an award of compensation for an employee so dismissed," he said.