ENG-1993 — Page 146

EMPLOYMENT

The division endeavours to promote harmonious labour-management relations in the private sector through a variety of activities such as promotional visits and talks to individual establishments, employers' associations and employees' trade unions; organising training courses, seminars and exhibitions; and publishing newsletters, information leaflets and pamphlets on a wide range of labour matters. Four territory-wide seminars on case studies of the Employment Ordinance and one seminar for contractors of the airport core programme were organised in 1993. These seminars attracted some 600 participants.

Two industry-wide committees, comprising representatives from employers' associa- tions, trade unions and the government, have been set up in the catering and construction industries to provide meeting points for relevant parties to discuss labour matters of mutual concern.

The Labour Tribunal

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The Labour Tribunal, which is part of the judiciary, provides a quick, inexpensive and informal method of adjudicating various types of disputes between employees and employers.

In 1993, the tribunal heard 4 029 cases involving employees as claimants, and a further 375 cases initiated by employers. More than $54 million was awarded by the presiding officers. Of these cases, 86 per cent were referred by the Labour Relations Division after unsuccessful conciliation attempts.

Protection of Wages on Insolvency Fund

The Protection of Wages on Insolvency Fund is financed by an annual levy of $250 on each business registration certificate. Employees who are owed wages and other termination benefits by their insolvent employers may apply to the fund for ex gratia payment. Previously, it covered wages not exceeding $8,000 accrued during a period of four months preceding the date of application, and seven days' wages in lieu of notice, up to $2,000. These two payment limits were revised in February and the respective levels were set at $18,000 and one month's wages, up to $6,000. The fund also covers an applicant's entitlement to severance payment, in full, up to $8,000 (which is the priority claim limit in a winding-up or bankruptcy), plus 50 per cent of his entitlement in excess of $8,000.

During the year, the fund received 7054 applications and paid out a total of $76.6 million to 6 137 applicants.

Finding Employment

The Employment Services Division provides free placement services to help employers recruit staff, and to assist job-seekers in finding suitable employment. Since 1992, employers wishing to employ foreign workers under the importation of labour schemes must notify the division of vacancies. This requirement ensures that local job-seekers have priority in filling the vacancies.

As a result of economic restructuring in recent years, there is a growing need for local workers to be re-trained so that they can obtain employment in another trade or more senior jobs in the same trade. In 1992, the government established an Employees Retraining Scheme which was financed by a $300 million government grant and a levy imposed on employers of imported workers. Under this scheme, a local employee undergoing re-training is paid a re-training allowance of up to $3,400 each month or

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