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G.S. 84
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XCR(79)52
employees in the higher income bracket are usually covered by some form of provident fund or gratuity scheme, their claim for severance payments would be offset by such schemes. The Commissioner for Labour therefore advises, and the Secretary for Social Services agrees, that it is not necessary on this occasion to revise upwards the limits of preferential payment currently stipulated in the Bankruptcy Ordinance and the Companies Ordinance.
10
The additional 5% coverage of wage earners indicates that the economic impact of the proposals would be small. In any case many of these employees are already believed to receive benefits more advantageous than the minimum standards laid down in the Employment Ordinance.
Financial and staffing implications
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The proposals do not involve any increase in staff for the Labour Department or the Labour Tribunal as the estimated small increase in the number of claims can be dealt with by existing staff. There are no additional financial implications.
Public relations aspects
12
It is estimated that public reaction towards these proposals should be generally favourable although some workers' organisations will probably criticise the retention of the wage ceiling for non- manual workers and some employers may, on the other hand, hold certain fears about raising the wage ceiling. The usual publicity attending any labour legislation will be given in the mass media and explanatory guides will also be published by the Labour Department.
Advice Sought
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Honourable Members will be asked to advise whether the Employment (Amendment) (No 2) Bill 1979, as annexed, should be introduced into the Legislative Council.
(The Secretary for Social Services (Mr E. P. HO), the Commissioner for Labour (Mr J. N. HENDERSON) and Crown Counsel (Mr G. M. WHEATLEY) will attend before the Council for the discussion of this item).
15th February 1979
(CR 6/3231/73)
COUNCIL CHAMBER
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