|
CHAPTER
6
EMPLOYEE
RIGHTS AND BENEFITS
The
Programme of Employee Rights and Benefits
(http://www.labour.gov.hk/text/eng/erb/index.htm)
6.1
The objective of the Employee Rights and Benefits Programme is
to improve and safeguard employee rights and benefits in an equitable
manner. Our aim is to progressively enhance employment standards
in a way which is commensurate with the pace of Hong Kong's economic
and social developments and to strike a reasonable balance between
the interests of employers and employees. We achieve this by:
- setting
and refining employment standards in consultation with the Labour
Advisory Board (LAB), the most established consultative forum
on labour matters;
- enforcing
compliance with statutory and contractual terms and conditions
of employment through inspection to workplaces and investigation
into suspected breaches of the statutory provisions and prosecution
of offenders;
- processing
employee compensation claims;
- maintaining
close partnership with statutory bodies set up for protecting
the rights and benefits of employees; and
- providing
customer-oriented information service to ensure that employees
and employers know their rights and obligations.
A
labour inspector enforcing the Immigration Ordinance by checking
an employee's proof of identity to deter illegal employment.
6.2
The principal legislation administered by this programme area
includes the Employees' Compensation Ordinance (ECO), the Pneumoconiosis
(Compensation) Ordinance (PCO), the Employment Ordinance (EO)
and its subsidiary Employment of Children Regulations and Employment
of Young Persons (Industry) Regulations, as well as Part IVB of
the Immigration Ordinance.
6.3
The ECO establishes a no-fault, non-contributory employee compensation
system under which individual employers are liable to pay compensation
for work-related injuries or fatalities. The ordinance requires
all employers to possess valid insurance policies to cover their
liabilities under the ordinance and at common law.
A
Concise Guide to the Employees' Compensation Ordinance.
6.4
The PCO provides compensation to persons who suffer from pneumoconiosis.
Compensation is paid from the Pneumoconiosis Compensation Fund,
which is administered by the Pneumoconiosis Compensation Fund
Board.
6.5
The EO is the main piece of legislation governing conditions of
employment in the non-government sector. The Employment of Children
Regulations made under the EO prohibit the employment of children
below the age of 15 in industrial undertakings and regulate the
employment of children aged 13 but under 15 in non-industrial
establishments. The Employment of Young Persons (Industry) Regulations
set out requirements on the working time arrangements for young
persons employed in the industrial sector and prohibit their employment
in dangerous trades.
6.6
The Labour Department also administers Part IVB of the Immigration
Ordinance to combat illegal employment in order to protect the
employment opportunities of local workers.
Our
Work and Achievements in 2003
Key
Indicators of Work
6.7
We stepped up our efforts to safeguard the rights and benefits
of employees through various activities in 2003. Some key indicators
of work of this programme area are shown in Figure
6.1.
Stepping
Up Enforcement Against Wage Offences
6.8
The
Labour Department takes a serious view on late payment and underpayment
of wages and has put in place effective arrangements to enforce
statutory provisions governing payment of wages. We conducted
territory-wide blitz operations and inspections to workplaces
such as construction sites, retail and catering establishments
to detect wage offences. Labour inspectors actively interviewed
employees during territory-wide routine inspections to combat
offences, and the Employment Claims Investigation Unit conducted
in-depth investigation into suspected wage offences under the
Employment Ordinance promptly. Prosecutions are taken out against
the employers once sufficient evidence is available.
A
labour inspector enforcing wage provisions at a catering establishment
to ensure employees receive their wages on time.
6.9
With
stepped-up enforcement action in 2003, the number of summonses
heard in respect of wage offences rose to 588, representing a
marked increase of 197 per cent over the 198 summonses in 2002.
As for summonses convicted, the number was 445 for 2003 as against
139 in 2002, an increase of 220 per cent.
Legislative
Proposals to Preserve and Improve Employee Benefits and their
Progress
6.10
In May 2003, the Occupational Deafness (Compensation) Ordinance
was amended to improve the benefits of employees under the Occupational
Deafness Compensation Scheme.
6.11
During the year, we continued with the drafting of the legislation
for implementing the proposal to recognise Chinese medicine under
the Employment Ordinance, Employees' Compensation Ordinance, Pneumoconiosis
(Compensation) Ordinance and the Pneumoconiosis Ex Gratia Scheme.
Vigorous
Enforcement Efforts
6.12
We have stepped up our enforcement efforts to ensure that the
statutory rights of employees under labour legislation are well
protected.
6.13
In 2003, labour inspectors carried out 156 919 workplace
inspections to different economic sectors, including 154
129 inspections to combat illegal employment. (Figure
6.2) We strengthened the collection and analysis of intelligence
on illegal employment activities, and organised more joint operations
with the Police and the Immigration Department to apprehend illegal
workers and their employers on the spot. We also publicised our
complaint hotline to facilitate members of the public to provide
intelligence on illegal employment activities. The new enforcement
mode led to more effective results. A record high of 490 suspected
illegal workers was detected in the year, representing an increase
of 43.7 per cent over the corresponding figure in 2002.
A
joint operation to combat illegal employment.
6.14
We mounted a territory-wide operation to retail establishments
in the year to enforce the compulsory requirement of taking out
employee compensation insurance policy under the Employees' Compensation
Ordinance. A total of 6 288 retail establishments
was inspected in the exercise. Employers failing to comply with
the statutory requirement were prosecuted.
A
labour inspector enforcing the Employees' Compensation Ordinance
to ensure employers possess valid insurance cover for their employees.
6.15
In the year, we continued to work closely with government departments
in monitoring their service contractors to ensure that low-skilled
employees of the contractors enjoyed their statutory rights and
benefits. A total of 513 inspections was conducted to the workplaces
of such workers and 2 064 workers were interviewed. Contractors
found to have breached labour legislation were prosecuted and
suspected breaches of contract terms were sent to concerned departments
for administrative sanctions wherever appropriate.
A
labour inspector interviewing employees of a public housing security
service contractor to understand their employment conditions.
6.16
To ensure compliance with the required conditions under the Supplementary
Labour Scheme, we investigated 53 complaints and cases on suspected
irregularities such as late payment and underpayment of wages.
Processing
Employee Compensation Cases
6.17
Under the current no-fault employee compensation system, compensation
is payable to injured employees or family members of deceased
employees for any work-related injuries or deaths. Claims for
compensation involving fatality are determined by the courts or
the Commissioner for Labour under the improved settlement mechanism
introduced in August 2000.
6.18
Information on employee compensation cases reported was contained
in Figures 6.3 and 6.4.
In 2003, we processed 32 355 non-fatal cases involving sick leave
exceeding three days which were reported in the year. These included
11 184 cases settled directly between employers and
employees. Compensation amounting to $7.57 million and $269 million
was payable respectively to the injured employees in minor cases
and in cases involving sick leave exceeding three days.
6.19
For the 49 649 employee compensation cases reported
in 2002, 47 220 non-fatal cases with sick leave exceeding three
days and 156 fatal cases were settled as at the end of 2003. A
sum of $804 million was payable as compensation to the injured
employees or family members of deceased employees. The number
of days lost was 1 281 501. (Figure
6.5)
6.20
The Loan Scheme for Employees Injured at Work and Dependants of
Deceased Employees provides temporary relief to victims of work
accidents. Under the scheme, an interest-free loan up to $15,000
in each case will be made to eligible applicants. In 2003, a total
loan of $416,046 was approved in 34 applications.
Information
and Advisory Services
Telephone
Enquiry Service
6.21
We
operate a round-the-clock Telephone Enquiry Service (TES) to handle
general enquiries on labour legislation and labour matters. Members
of the public can listen at any time to 80 topics of pre-recorded
messages in Cantonese, Putonghua or English on labour legislation
and services of the department. They can also obtain 93 forms
and printed messages in Chinese or English by fax. During office
hours, telephone enquiry officers are available to answer further
enquiries. In the year, this highly popular service handled 1
187 809 calls. (Figure 6.6)
Telephone
enquiry service officers providing one-stop enquiry service to the
public on labour ordinances and the services of the department.
Briefings
and Promotional Campaigns
6.22
In 2003, we arranged four briefings for the public sector and
55 briefings for imported workers to publicise the rights and
obligations of the parties concerned.
6.23
Extensive publicity campaigns were launched to warn against illegal
employment and to educate employers and employees about their
rights and obligations under the Employees' Compensation Ordinance
.
Promotional
leaflet against illegal employment.
Posters
and leaflets publicising the requirement on timely payment of
compensation by employers under the Employees' Compensation Ordinance.
"Introductory
Self-learning Programme on the Employees' Compensation Ordinance"
was launched in the Ming Pao to enhance public understanding of
the Ordinance.
Seminars
on the Employees' Compensation Ordinance were effective in enhancing
participants' understanding of the Ordinance and the procedures
in processing employees' compensation cases.
Partnership
with Statutory Bodies
6.24
We maintain close partnership with various statutory bodies to
administer the various schemes for the protection of the rights
and benefits of employees.
Protection
of Wages on Insolvency Fund Board
6.25
The Protection of Wages on Insolvency Ordinance (PWIO) provides
for the establishment of the Protection of Wages on Insolvency
Fund (the Fund) and its administration by a board. Under the PWIO,
employees who are owed wages, wages in lieu of notice and severance
payments by their insolvent employers may apply to the Fund within
six months after their last day of service for ex gratia payments.
6.26
We support the Protection of Wages on Insolvency Fund Board by
verifying applications and approving payments from the Fund. In
2003, we received 22 350 applications and processed
a record high of 22 042 applications, leading to
payments of $468.2 million. A breakdown of applications received
by economic sectors was shown in Figure
6.7. Although the Fund Board secured a government bridging
loan of $695 million in 2002, it was not necessary to draw down
the loan in the year.
6.27
The
department and the Fund Board take a serious view on possible
abuse of the Fund, particularly with employers dishonestly shifting
their liabilities on wage payments to the Fund. Stringent vetting
procedures are in place to process all applications. An "inter-departmental
task force" comprising representatives of the Labour Department,
Official Receiver's Office, Commercial Crime Bureau of the Police
Force and Legal Aid Department has been set up to further prevent
possible abuse.
Pneumoconiosis
Compensation Fund Board
6.28
The Pneumoconiosis Compensation Fund Board (PCFB) is established
under the Pneumoconiosis (Compensation) Ordinance (PCO) to provide
compensation to persons suffering from pneumoconiosis. The Board
is financed by a levy collected from the construction and quarrying
industries. Under the PCO, the Labour Department is responsible
for determining whether an applicant is entitled to compensation.
Eligible persons receive compensation in the form of monthly payments
from the PCFB. In 2003, the Board approved 2 089
applications, leading to payments of $171.3 million.
Employees
Compensation Assistance Fund Board
6.29
The Employees Compensation Assistance Fund Board (ECAFB) is set
up under the Employees Compensation Assistance Ordinance (ECAO).
The ECAFB is responsible for running the Employees Compensation
Assistance Scheme which provides payments to injured employees
who are unable to receive their entitlements for employment-related
injuries from their employers or insurers. The scheme also protects
employers in the event of the insurers underwriting their employees'
compensation insurance becoming insolvent. In 2003, the Board
approved 769 applications, leading to payments of $126.7 million.
Occupational
Deafness Compensation Board
6.30
The Occupational Deafness Compensation Board is established under
the Occupational Deafness (Compensation) Ordinance to provide
compensation and reimbursement of expenses incurred in purchasing,
repairing and replacing hearing assistive devices to those persons
who suffered from noise-induced deafness due to employment in
specified noisy occupations. In 2003, the Board received 213 applications
for compensation and approved 74 applications with a total compensation
payout at about $6.95 million. The Board also received 201 applications
in relation to the payment of expenses on hearing assistive devices
and approved 119 applications with a total approved amount of
about $0.72 million.
| Index |
Chapter 1 | Chapter
2 | Chapter 3 | Chapter
4 | Chapter 5 | Chapter
6 | Chapter 7 |
|
Figures and Charts |
|