CONFIDENTIAL
Severance Pay Bill
19. "Approximately 25% of all disputes dealt with by Labour Relations Officers are concerned with terminal pay and benefits". (1971 Report). The position has changed little since. At the time of my current visit, a troublesome dispute at American Marine hinged on the refusal of the employer concerned to pay more than the bare minimum notice of dismissal to even long service workers whose contracts had recently been terminated.
20.
A draft Bill has now been prepared which provides, as agreca by Executive Council, for one-third of a month's pay for each year of service to be paid to a redundant worker, up to a maximum payment of 'wages earned during the period of 12 months immediately preceding the date of his dismissal by reason of redundancy'. This is an important advance. (It is perhaps unfortunate that the Labour Advisory Board recommendation, supported by the Department of Labour, for two-thirds of a month's pay, was modified since this is closer to payments voluntarily made by most good employers.")
21. With regard to the terms of the draft Bill, consideration might be given to the inclusion of provisions to deal with a case where an employee dies or is totally disabled (after he has been given notice) in circumstances which entitle him to payment of Workmen's Compensation. (Part II of the Third Schedule refers). A provision on the following lines might meet the case:-
"Where, on the cessation of any employee's employment, an employer pays to the employee or to a dependant (within the meaning of that term in the Workmen's Compensation Ordinance) any compensation under the Workmen's Compensation Ordinance on account of the death or permanent total incapacity of the employee the employer shall be exempt from liability to pay any severance allowance to or in respect of such employee.
Hours of Work and Overtime for Women and Young Persons
22. In 1950 an optimistic Commissioner of Labour, Hong Kong, declared that "it is an aim of policy of the Department to get the 48 hour week recognised as standard". (Annual Report of the Labour Department 1950). A quarter of a century later there is still some way to go.
1950
1959
Declaration of intent.
Reduction of maximum permitted hours of work of women and young persons to 10 per day with a weekly rest day as a first step towards an
8 hour day, plus a restriction on overtime to a maximum of 100 hours a year.
/Dec. 1967
The cost to employers of this maximum, as amended, is unlikely to exceed 1% of the wage bill, or add more than 25% to production costs.
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CONFIDENTIAL
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