ENG-2005 — Page 179

Employment | 145

Labour Conditions

The employment of children under the age of 15 is generally prohibited by law. 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 during workplace inspections and mount intelligence-led operations with the Police and the Immigration Department to clamp down on illegal employment activities. In 2005, 176 joint operations were mounted, up 69 per cent compared to 2004. A total of 538 illegal workers and 237 employers suspected of employing illegal workers were arrested in these operations. The department also widely publicised the complaint. hotline (2815 2200) to encourage reporting of illegal employment activities.

In April 2005, the Labour Department implemented a standard employment contract for contractors of government service contracts that rely heavily on the deployment of non-skilled workers to sign with their non-skilled employees. The standard employment contract, which sets out clearly the employment terms, helps safeguard the rights and benefits of non-skilled employees.

Stepping Up Enforcement Against Wage Offences

The Labour Department initiated amendments to the Employment Ordinance in December to raise the maximum penalty for wage offences to a fine of $350,000 and imprisonment for three years. The new penalty will take effect from March 30, 2006. Former experienced police officers were recruited during the year to strengthen the investigative work and collection of intelligence.

The department secured convictions for 587 summonses on wage offences in 2005, an all-time high and up 16.5 per cent over the 504 summonses in 2004. A company director and two other employers were jailed for wage defaults. the first sentence of imprisonment for such an offence. The department has also taken prompt action to detect wage offences through inspections of targeted workplaces. It has strengthened its educational and promotional efforts to remind employers of their statutory obligations to pay wages on time and educate employees on the right to lodge claims and the importance of serving as prosecution witnesses.

Employees' Compensation

In Hong Kong, the employees' compensation system adopts the no-fault principle whereby compensation is payable irrespective of whether the injury, Occupational disease or death was 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