ENG-2001 — Page 178

EMPLOYMENT

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conventions are applied here. This compares favourably with most member states of the ILO in the Asia-Pacific region. The HKSAR continues to participate in the activities of the ILO. In 2001, representatives from the HKSAR participated in the 89th Session of the International Labour Conference as advisers to the delegation of the People's Republic of China. The HKSAR also participated in the 13th Asian Regional Meeting and other regional activities of the ILO, under the name 'Hong Kong, China'.

Employee Benefits

The Employment Ordinance provides for various employment-related benefits and entitlements for employees. On top of the statutory requirements, employers and employees are free to negotiate on the terms and conditions of their employment.

Since December 2000, all relevant employers have to enrol their employees in MPF schemes in accordance with the Mandatory Provident Fund (MPF) Schemes legislation. The participation rate of the relevant employers in MPF schemes, which are regulated by the Mandatory Provident Fund Scheme Authority (MPFA), reached 88 per cent at the end of the year.

Labour Conditions

The employment of children under 15 years of age is generally prohibited. Subject to stringent requirements, children aged 13 and 14 may be employed in non-industrial establishments. Young persons aged 15 to 17 may work in industrial establishments, subject to regulations governing their employment conditions. Specific provisions under labour legislation protect their safety, health and welfare.

Labour inspectors conduct rigorous workplace inspections to monitor employers' compliance with the various provisions of labour legislation to safeguard the statutory rights and benefits of local and imported workers, and to ensure that employers possess valid insurance policies covering their liabilities for work injuries of their employees. Labour inspectors also check employees' proof of identity to help combat illegal employment.

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 employment termination benefits by insolvent employers may apply to the fund for ex gratia payment.

The fund covers arrears of wages not exceeding $36,000 accrued during a period of four months preceding the applicant's last day of service; wages in lieu of notice for termination of employment up to $22,500 or one month's wages, whichever is less; and severance payment up to $50,000 plus 50 per cent of any entitlement in excess of $50,000. The fund paid out a total of $338.4 million to 13 314 applicants in 2001.

Employees' Compensation

In Hong Kong, the employees' compensation system adopts the no-fault principle whereby compensation is payable irrespective of whether the injury, the occupational disease or death was caused by the employee's fault. The Employees' Compensation Ordinance covers injuries or death caused by accidents arising out of and in the