CONFIDENTIAL
or discussion
on 29 April 1986
XCC (86)79 Copy No
MEMORANDUM FOR EXECUTIVE COUNCIL
Employment Ordinance (Chapter 57)
Z
EMPLOYMENT AGENCY (AMENDMENT) REGULATIONS 1986
Introduction
164
The purpose of this memorandum is to seek approval for an amendment to the Employment Agency Regulations raising the fee for issue or renewal of a licence to operate an employment agency from $300 to $400.
Background
2
Under section 51 (1) of the Employment Ordinance (Chapter 57), no person may operate, manage or assist in the management of an employment agency unless he is the holder, or an employee of the holder, of a licence or certificate of exemption is sued by the Commissioner for Labour in respect of that agency.
Under section 53, the Commissioner may withdraw or withhold a licence if he is satisfied either that the name of the agency is so similar to the name of another employment agency as to be likely to deceive the public, or that the agency is being,
is being, or will be, used for unlawful or immoral purposes; or that the operator is not a fit or proper person to run an employment agency. This licensing system wa s introduced in 1974 to prevent malpractices which had occurred when a number of agencies had been set up to obtain fees from job-seekers without any real intention or means of placing applicants in employment.
3
Section 62 of the Ordinance provides that the Governor in Council may by regulation set the level of fee to be charged for the issue renewal of a licence, which is renewable annually. The fee was originally set at $100 in 1974 and was raised to $300 in November 1982. A further increase is now considered desirable.
4
The cost at present of administering the licensing system is of the order of $425,000 per annum. There are at present 263 licensed employment agencies and to recover administrative costs in full it would be necessary to charge an annual licence fee of at least $1,600. A policy of full recovery of administrative costs is considered inappropriate because most employment agencies are
small businesses or
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RECEIVED IN REGISTRY
3 C APR 1986
ER
INUGX
PA
REGISTRY
Action Taken
CONFIDENTIAL
No comments yet.
Private notes are available after approval.