ENG-2009 — Page 181

Employment | 129

About half of the employee unions are affiliated to four major labour organisations registered under the Societies Ordinance. They are the Hong Kong Federation of Trade Unions (179 unions), the Hong Kong and Kowloon Trades Union Council (34 unions), the Hong Kong Confederation of Trade Unions (79 unions), and the Federation of Hong Kong and Kowloon Labour Unions (68 unions).

Protection of Wages on Insolvency Fund

The Protection of Wages on Insolvency Fund provides ex gratia payment to employees who are owed wages and other termination benefits by insolvent employers. Its funds come mainly from an annual levy of $450 imposed on business registration certificates. 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 of termination of employment of up to $22,500 or one month's wages, whichever is less; and severance payment of up to $50,000 plus 50 per cent of any entitlement in excess of $50,000. The maximum amount of ex-gratia payment per eligible worker is $278,000.

In 2009, the fund received 7 260 applications for ex gratia payment, 13 per cent up on last year's 6 448 applications. During the year, the fund paid out $174 million to 6 717 applicants, and recorded a surplus of $259 million.

Employee Rights and Benefits

The Employment Ordinance provides for various employment-related benefits and entitlements to employees. Over and above the 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 2009, 99.9 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 comply 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, 217 interdepartmental operations were carried out.