TNAG-1857-FCO40-2632-Legislative-Council-of-Hong-Kong-memoranda-and-minutes-of-me-1989 — Page 100

HONG KONG

LEGISLATIVE 香港立法局———————————一九八九年七月十二日

COUNCIL

12 July 1989

48

BETTING DUTY (AMENDMENT) BILL 1989

Resumption of debate on Second Reading which was moved on 28 June 1989

Question on Second Reading proposed, put and agreed to.

Bill read the Second time.

Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).

PROTECTION OF WAGES ON INSOLVENCY (AMENDMENT) BILL

1989

Resumption of debate on Second Reading which was moved on 21 June 1989

Question on Second Reading proposed.

MR. CHUNG: Sir, I have first to declare that I am the chairman of the Protection of Wages on Insolvency Fund Board, which is charged with, among other things, the duty of administering the fund established by the Protection of Wages on Insolvency Ordinance. The Ordinance provides for payments of wages in arrears and unpaid wages in lieu of notice from the fund to employees whose employers have become insolvent.

Financing of the fund is by way of a levy of $100 per annum on each Business Registration Certificate.

When the Ordinance came into effect in April 1985, it only provided for payment of wages in arrears on the insolvency of employers. Employees might seek payment from the fund of an amount up to four months' wages but not exceeding $8,000, as stipulated in the Bankruptcy and Companies Ordinance for preferential treatment of claims in cases of bankruptcy and liquidation.

In July 1987, the fund was extended to cover seven days' wages in lieu of notice or an amount not exceeding $2,000.

The purpose of the amendment Bill is to extend the scope of the fund to cover severance payments.