ENG-2010 — Page 175

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 (180 unions), the Hong Kong and Kowloon Trades Union Council (33 unions), the Federation of Hong Kong and Kowloon Labour Unions (70 unions), and the Hong Kong Confederation of Trade Unions (79 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 2010, after the economy improved, the fund received 4 453 applications for ex gratia payment, a 39 per cent drop from last year's 7 260 applications. During the year, the fund paid out $99 million to 4 359 applicants, and recorded a surplus of $404 million.

Employees' 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 year's end, some 99 per cent of employers had joined the schemes.

Labour Conditions

Children under 15 are generally prohibited from employment by law. Subject to stringent rules, children aged 13 to 14 may be employed in non-industrial establishments. While young people aged 15 to 17 may work in industrial establishments, their employment is subject to regulations on their hours of work. Specific provisions under labour legislation protect workers' safety, health and welfare.

Labour Inspectors inspect workplaces to ensure employers' compliance with laws safeguarding the rights and benefits of workers, and that employers possess valid employees' compensation insurance. Labour inspectors also check employees' proof of identity during their inspections and work with the Police and the Immigration Department to combat illegal employment. During the year, 217 interdepartmental operations were carried out.