ENG-2008 — Page 179

Employment | 131

In 2008, the fund received 6 448 applications for ex gratia payment, 33 per cent up on last year's 4 836 applications. During the year, the fund paid out $96 million to 4 911 applicants, and recorded a surplus of $371 million.

Employees' Rights and Benefits

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

Since December 2000, all employers have had to enrol their employees in Mandatory Provident Fund schemes, which are regulated by the Mandatory Provident Fund Schemes Authority. At the end of the year, 99.8 per cent of employers have joined the schemes.

Labour Conditions

The employment of children under 15 is generally prohibited by law. Subject to stringent rules, children aged 13 and 14 may be employed in non-industrial establishments. Young people aged between 15 and 17 may work in industrial establishments, subject to regulations governing their employment conditions. Specific provisions under labour legislation protect workers' safety, health and welfare.

Labour inspectors conduct rigorous inspections of workplaces to make sure employers are complying with the laws that safeguard the rights and benefits of workers, and that employers possess valid employees' compensation insurance policies. Labour inspectors also check employees' proof of identity during their visits. and work with the Police and the Immigration Department to combat illegal employment. During the year, 186 interdepartmental operations were carried out. The department also publicised widely its complaints hotline (2815 2200) to encourage people to report illegal employment activities.

Companies providing services to the Government under service contracts which rely heavily on the deployment of non-skilled workers are required to sign a standard employment contract with the workers. The contract helps safeguard the rights and benefits of the non-skilled workers.

Enforcement Against Wage Offences

In 2008, the Labour Department took vigorous enforcement action against employers who failed to pay wages due to their employees and adopted measures in preventing wage defaults. The department secured convictions for 958 summonses relating to wage offences. Three company responsible persons and one employer were jailed or given suspended sentences for wage defaults.

Employees' Compensation

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