ENG-1995 — Page 151

EMPLOYMENT

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Occupational Retirement Schemes Ordinance and their employers, provided that the schemes can satisfy requirements which are consistent with the fundamentals of the MPF System. Also exempt from the ordinance are employees covered by statutory pension schemes and their employers, and so will domestic employees and self- employed hawkers in the initial stage.

A system of supervision will be developed to ensure that scheme members' contributions are kept in good hands and invested prudently. Only approved trustees will be allowed to operate registered schemes for the MPF System. A Mandatory Provident Fund Schemes Authority will be established to be responsible for all aspects of the MPF System, including its administration and regulation. To make good benefit losses due to any fraud and misfeasance, a Compensation Fund will be set up with an initial capital injection from the government. A Residual Provident Fund Scheme will be established to provide a last resort to those who cannot gain access to other registered schemes in the open market and where the authority cannot place them in any scheme.

The Chinese Government has been kept informed of all developments through the Sino-British Joint Liaison Group and the government has promised that further consultation with interested sectors of the community will be conducted when drawing up the relevant subsidiary legislation.

The government will continue to regulate voluntarily established occupational retirement schemes under the Occupational Retirement Schemes Ordinance. The ́two-year transitional period within which such schemes had to apply for registra- tion or exemption with the Registrar of Occupational Retirement Schemes expired on October 15, 1995. By year's end, 12 309 schemes had been registered and 1 069 schemes were exempted. All registered schemes must comply with the requirements and regulations of the ordinance.

Labour Administration and Services

The Labour Department, headed by the Commissioner for Labour, implements labour policies and enforces labour legislation. These objectives are achieved through the promotion of the safety, health and welfare of the working community. Harmonious labour relations and responsible trade unionism are promoted and employees' rights and benefits are safeguarded. Employment services and careers guidance are provided free.

Labour Conditions

Children aged under 15 years may not be employed in the industrial sector. Children aged 13 and 14 years may take up employment in non-industrial establishments, subject to the condition that they attend full-time schooling if they have not yet completed three years of secondary education and other provisions which are aimed at protecting their safety, health and welfare.

The Labour Inspectorate of the Labour Department monitors employers' com- pliance with requirements in the Employment Ordinance relating to the employment of women, young persons and children, payment of wages, annual leave and holidays, sickness allowance and maternity protection. The ordinance applies to local and foreign workers.