TNAG-1519-FCO40-2080-Employment-in-Hong-Kong-1986 — Page 199

G.S. 84

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XCR (86) 1 Copy No

38

MEMORANDUM FOR EXECUTIVE COUNCIL

Labour Tribunal Ordinance

(Chapter 25)

LABOUR TRIBUNAL (AMENDMENT) BILL 1986

91.

Introduction

The purpose of this memorandum is to seek Members' approval to the introduction into the Legislative Council of a bill to amend the Labour Tribunal Ordinance (Chapter 25). The object of the Bill is

is to provide that the rate of interest in respect of claims and awards in the Labour Tribunal will follow the rate prescribed by the Chief Justice in respect of judgment debts in the District Court and to ensure that every award carries interest during the period between the date of the award and the date of registration of the same in the District Court.

Background

2

The present position is that the Chief Justice does not have power to prescribe the rate of interest on judgment debts in the Labour

Labour Tribunal. His power, in respect of awards in the Labour Tribunal, only extends to the rate of interest to be paid on the amount claimed for all or part of the period up to the date of the award (section 39(1)). Until an award is

registered in the District Court in accordance with section 38, no interest will run unless the Tribunal prescribes a rate under section 39(3). Hence, if no order is made under section 39(3), a successful claimant is not entitled to interest on the judgment debt for the period between the date of the award and the date of registration under section 38.

The Bill1

3

The amendments proposed in Clause 2(a) and (b) of the Bill are to ensure that the same rate of interest automatically applies to claims and awards and that it accrues during the period between the date of the award and the date of registration.

4

Clause 2(c) provides for the rate of interest to be the rate fixed by the Chief Justice by notice in the Gazette under the District Court Ordinance.

HKK 20,

RECEIVED IN REGISTRY

09 JAN1986

DESK OFFICER

INDEX

TUSHISTRY

Action Taken

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