12 July 1989
一九八九年七月十二日
51
HONG KONG LEGISLATIVE COUNCIL
香港立法局
SECRETARY FOR EDUCATION AND MANPOWER: Sir, I would like to thank Mr. CHUNG Pui-lam and members of his ad hoc group for their support of the Bill.
I am glad that the proposal to extend the ambit of the Protection of Wages on Insolvency Fund to include severance payments has been well received. The fund will now protect three main elements of an employee's entitlement under the Employment Ordinance, namely, wages in arrears, wages in lieu of notice and severance payments.
As regards the amount of severance payments to be borne by the fund, Mr. TAM Yiu-chung has argued that the proposed figure of $4,000 should be raised to $8,000, at least in keeping with the preferential limit for severance payments made under existing insolvency legislation.
Sir, I would point out that the purpose of the Protection of Wages on Insolvency Fund is to provide quick relief to employees who have suddenly lost their employment. When the proposed figure of $4,000 for severance payments is taken together with wages owed in arrears and wages payable in lieu of notice, the immediate relief can be as high as $14,000. Seen in this light, and having regard to the resources of the fund, it would seem prudent in the first instance to set the limit for severance payments at $4,000 per employee. This view is generally shared by the board controlling the fund. We will, however, review the $4,000 limit after one year in the light of experience and the resources of the fund.
Question on the Second Reading of the Bill put and agreed to.
Bill read the Second time.
Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1).
4.23 pm
HIS EXCELLENCY THE PRESIDENT: Before we go on to the Committee stage and the debate, Members might like to take a short break.
5.01 pm
HIS EXCELLENCY THE PRESIDENT: Council now resumes.
:
No comments yet.
Private notes are available after approval.