TNAG-0872-FCO40-1082-Legislation-for-employment-in-Hong-Kong-1979 — Page 62

G.S. 84

XCR(79)52

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this percentage, the existing wage ceiling for non-manual workers should be raised from $2,000 to $3,080 per month in order to provide coverage again for those who have either become "disenfranchised" due to wage increases over this period or who are likely to be affected in the near future because of periodic wage adjustments.

Position of higher-paid non-manual workers

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The existence of a wage ceiling for non-manual workers under section 4 of the Ordinance has meant, in practice, the exclusion of those non-manual workers earning above this level from the protection and benefits of the Ordinance. While it may be argued that these workers are in jobs which offer as much if not more in terms of protection and benefits, or alternatively are educated and sophisticated enough to know how to protect themselves in contracts of employment, the fact remains that there are sectors of employment (especially in the traditional sector) where such workers receive neither protection nor benefits. This is inequitable.

Proposals

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Having regard to the situation outlined in paragraph 3 above, it is now proposed to:

(a) raise the monthly wage ceiling for non-manual

workers to $5,000 (clause 2 of the bill) which will then align the wage ceiling with that in the Workmen's Compensation Ordinance (Chapter 282);

and

(b) regard the monthly wages of non-manual workers,

for the purposes of calculating severance payments only, as limited to $3,000 or actual wages, whichever is the less (clause 3 of the bill). purpose of this limitation is to mitigate the legal liability of employers.

The

Consultation

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In September 1977 the Commissioner for Labour consulted the Labour Advisory Board (LAB) on this matter. Having considered various alternatives the LAB (which consists of equal numbers of representatives of employers and employees) advised that the wage ceiling should be removed but that the maximum monthly wages for the purposes of calculating severance payments should not exceed $3,000,

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