TNAG-0966-FCO40-1185-Legislation-for-employment-in-Hong-Kong-1980 — Page 2

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For discussion

on

rd December 1980

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LAST PAPER

XCR(80)305

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ME MORANDUM FOR EXECUTIVE COUNCIL

HK6210

Employment Ordinance (Chapter 57)

RECEIVED IN FEVER LOYMENT (AMENDMENT) BILL 1981

- 2 JAN 1981

RODISTAY

1. Muf

33

22 12

27

Do123/12.

2.01A0 3. PA

22112

ра

. J.

29.12

DEAMOQVell for the Congleration of Members is the Employment (AmendXB981 which seeks to:

(aque widnd-tie application of the Employment Ordinance (Chapter

57) to a higher wage earning class of non-manual employees by raising the existing wage ceiling from $3,500 to $6,000 per month (clauses 2 and 3 of the Bill);

(b) empower the Legislative Council to amend by resolution

the level of the wage ceiling for non-manual employees in the Employment Ordinance (clause 4 of the Bill).

Background

2

On 27th February 1979, after considering memorandum XCR(79)52 concerning the Employment (Amendment) (No 2) Bill 1979 which sought, inter alia, to raise the wage ceiling for non-manual employees in the Employment Ordinance, the Council advised and the Governor ordered that as an interim measure, pending consideration on the review of the Workmen's Compensation Ordinance in respect of the position of non-manual employees, the wage ceiling should be raised from $2,000 to $3,500 per month. The Employment (Amendment) (No 2) Ordinance 1979 subsequently came into operation on 27th April 1979.

Consultation

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Since then, the Hong Kong Institute of Personnel Management, the Hong Kong Management Association and the Hong Kong Productivity Centre have been consulted on the complete removal of the wage ceiling for non- manual employees in the Employment Ordinance. All of them opposed such a proposal on the grounds that it would -

(a) lead to some employers regarding the minimum standards prescribed in the Employment Ordinance as the maximum that need be offered to their employees, thus having the undesirable effect of setting standards generally below the current norm for higher paid executives, and could be more of a hindrance than a help to these executives in negotiating for better terms;

G.S. 84

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