ENG-2002 — Page 179

EMPLOYMENT

comprises 12 members. Six of them represent employers, and another six represent employees. The Commissioner for Labour, or the deputy, is the ex officio chairman. The board has set up five committees and one working group on special subjects which cover employees' compensation, employment services, occupational safety and health, labour relations, the implementation of international labour standards and the processing of applications for labour importation under the Supplementary Labour Scheme.

Protection of Wages on Insolvency Fund

The Protection of Wages on Insolvency Fund is financed by an annual levy of $600 on each business registration certificate with effect from May 2002. 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 $513.8 million to 20 157 applicants in 2002.

Employees Rights and 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 93.6 per cent by year-end.

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.

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 course of employment or by specified occupational diseases. An employer must be in

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