ENG-2003 — Page 180

EMPLOYMENT

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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. In 2003, out of 22 042 applications processed, the fund disbursed a total of $468.2 million to 19 794 applications.

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 Schemes Authority, reached 95.4 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 possession of a valid insurance policy to cover his liabilities under the ordinance and at common law.

The Employees' Compensation Division of the Labour Department, which administers the Employees' Compensation Ordinance, assists injured employees and family members of deceased employees to obtain compensation from their employers. It also administers a scheme to provide interest-free loans to those injured employees and family members of deceased employees who need financial assistance as a result of a work-related accident.

Payment of compensation under the Pneumoconiosis (Compensation) Ordinance is administered by the Pneumoconiosis Compensation Fund Board. Pneumoconiosis sufferers who were diagnosed before 1981 are not covered by the ordinance. They

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