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Employment

Pneumoconiosis and/or mesothelioma sufferers are eligible for compensation under the Pneumoconiosis and Mesothelioma (Compensation) Ordinance administered by the Pneumoconiosis Compensation Fund Board. The fund is financed by a levy imposed on the construction and quarrying industries. Those diagnosed to have contracted pneumoconiosis before the ordinance became effective in 1981 may apply for ex gratia payments from the government under the Pneumoconiosis Ex Gratia Scheme.

Statutory Minimum Wage

The statutory minimum wage rate of $34.50 per hour, effective from May 2017, has been operating smoothly. The department publicises the Minimum Wage Ordinance widely and labour inspectors visit businesses to ensure employers' compliance with the law.

The Minimum Wage Commission is an independent statutory body established under the ordinance. Its main function is to review and recommend the statutory minimum wage rate to the Chief Executive in Council when required by the Chief Executive to do so. The commission submitted its latest recommendation report to the Chief Executive in Council in October.

Regulation of Employment Agencies

The department enforces Part XII of the Employment Ordinance, the Employment Agency Regulations and the Code of Practice for EAs through issuing licences, conducting inspections, investigating complaints and prosecuting offenders. In 2018, the department conducted 2,109 inspections of EAs, prosecuted 10 non-compliant EAs successfully, issued or renewed 3,079 EA licences, and revoked or refused to issue or renew 11 licences.

Working Hours Policy

In the absence of broad-based support, the government decided in 2018 not to pursue for the time being legislative proposals on contractual working hours and mandatory overtime compensation recommended by the Standard Working Hours Committee, and to focus on formulating working hours guidelines for 11 specified industries through the department's industry-based tripartite committees. The guidelines will suggest working hours arrangements, overtime compensation arrangements and good working hours management measures for employers' reference and adoption.

Retirement Protection

All employees, except those who are not required by law to join a local retirement scheme, receive retirement protection under the Mandatory Provident Fund (MPF) Schemes Ordinance, Occupational Retirement Schemes Ordinance or other statutory pension plans.

To preserve the accrued benefits of employers' mandatory contributions in employees' MPF accounts for retirement purposes, the government announced in October enhanced arrangements for abolishing the use of such accrued benefits to offset severance payment and long service payment. The government plans to introduce the enabling bill into the Legislative Council by 2020.

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