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The Programme of Employee Rights and Benefits
(http://www.labour.gov.hk/eng/erb/content.htm)
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| 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;
- ensuring
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.
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| 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.
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| 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.
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A
Concise Guide to the Employees' Compensation Ordinance.
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| 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. |
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| 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.
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| 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.
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Our Work and Achievements in 2004
Key Indicators of Work
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| 6.7 |
We
stepped up our efforts to safeguard the rights and benefits
of employees through various activities in 2004. Some
key indicators of work of this programme area are shown
in Figure 6.1.
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Stepping Up Enforcement Against Wage Offences
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| 6.8 |
The
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 to detect wage offences. Labour inspectors
actively interviewed employees during territory-wide routine
inspections to combat wage offences, and the Employment
Claims Investigation Division 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.
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A
labour inspector explaining to an employee her statutory
rights and benefits. |
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| 6.9 |
With the department stepping up enforcement action in 2004,
the number of summonses heard in respect of wage offences
rose to 697, representing an increase of 18.5 per cent over
the figure of 588 summonses in 2003. As for summonses convicted,
the number was 504 for 2004 as against 445 in 2003, an increase
of 13.3 per cent. The highest fine recorded in a case in
2004 was $140,000, as compared with $50,000 in 2003. |
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| Legislative Proposals to Protect
and Improve Employee Benefits |
| 6.10 |
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.
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Vigorous Enforcement Against Illegal Employment
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| 6.11 |
We
have stepped up our enforcement efforts to ensure that
the statutory rights of employees under labour legislation
are well protected.
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| 6.12 |
In
2004, labour inspectors carried out 131 727
workplace inspections to different economic sectors, among
which 129 713 inspections also covered 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 telephone hotline
(2815 2200) 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 760 suspected illegal workers and 196
employers employing illegal workers were detected in the
year, representing an increase of 55 per cent and 128
per cent respectively over the corresponding figures in
2003.
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A
labour inspector and policemen questioning the person-in-charge
of a workplace where suspected illegal workers were
detected. |
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| 6.13 |
We conducted routine inspections and trade-targeted operations
to enforce the compulsory requirement of taking out employee
compensation insurance policy under the Employees' Compensation
Ordinance. In the year, a total of 61 111 establishments
of various economic sectors were inspected. Employers failing
to comply with the statutory requirement were prosecuted. |
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| 6.14 |
In
the year, we continued to work closely with government
departments in monitoring their service contractors to
ensure that non-skilled employees of the contractors enjoyed
their statutory rights and benefits. A total of 604 inspections
were conducted to the workplaces of such workers, up 17.7
per cent on 2003, and 1 963 workers were
interviewed. Contractors found to have breached labour
legislation were prosecuted. Offence records and suspected
breaches of contract terms were sent to concerned departments
for administrative sanctions wherever appropriate.
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| 6.15 |
To
ensure compliance with the required conditions under the
Supplementary Labour Scheme, we investigated 25 complaints
and cases on suspected irregularities such as allegations
on deprivation of statutory holidays, long working hours
and underpayment of wages of imported workers.
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Processing Employee Compensation Cases
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| 6.16 |
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.
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| 6.17 |
Information
on employee compensation cases reported is shown in Figures
6.3 and 6.4. We processed
33 969 non-fatal cases involving sick leave
exceeding three days which were reported in 2004. These
included 12 077 cases settled directly between
employers and employees. Compensation amounting to $7.72
million and $254 million was payable respectively to the
injured employees in minor cases and in cases involving
sick leave exceeding three days.
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| 6.18 |
For
the 44 346 employee compensation cases reported
in 2003, 41 859 non-fatal cases with sick
leave exceeding three days and 140 fatal cases were settled
as at the end of 2004. A sum of $694 million was payable
as compensation to the injured employees or family members
of deceased employees. The number of working days lost
was 1 116 741. (Figure
6.5)
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| 6.19 |
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 2004, a total loan of $164,600 was approved
in 13 applications.
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Processing SARS-related Claims
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| 6.20 |
As
at end-2004, the Labour Department received a total of
414 employees' compensation claims (including nine fatal
cases) relating to Severe Acute Respiratory Syndrome (SARS)
reported by employers under the Employees' Compensation
Ordinance. Since employees infected with SARS might have
other residual complications, they would be fit for assessment
by the Employees' Compensation Assessment Board only when
their medical conditions had stabilised. As at year-end,
the Labour Department arranged a total of 247 assessments
in respect of respiratory impairment. Since some of the
SARS employees had other complications and had received
treatment from other specialties, such as orthopaedic
and endocrine, the department also actively arranged assessments
by the relevant specialties. As a result of the department's
active follow-up action, the statutory compensation claims
in seven fatal cases and 76 non-fatal cases were resolved
upon the issue of certificates of compensation assessment
by the department as at year-end.
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Information and Advisory Services
Telephone Enquiry Service
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| 6.21 |
The
Telephone Enquiry Service handles general enquiries on
labour legislation and on services offered by the department.
Guided by an interactive voice processing system, callers
can listen to pre-recorded messages and obtain fax information
24 hours a day by making a selection from a wide range
of topics. The service is supplemented by telephone enquiry
officers handling more complicated enquiries during office
hours. The service handled 538 548 calls
from January to June in 2004. In July 2004, the service
was merged with the telephone enquiry service operated
by the Integrated Call Centre of the Efficiency Unit to
enhance the enquiry service. Since then, the department's
enquiry hotline 2717 1771 is handled by the
"1823 Citizen's Easy Link".
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Briefings and Promotional Campaigns
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| 6.22 |
In
2004, we arranged four briefings for the public sector
and 31 briefings for imported workers to publicise the
rights and obligations of the parties concerned.
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| 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.
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Promotional
leaflet against employment of illegal domestic helpers.
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Seminar
on the Employees' Compensation Ordinance to enhance
participants' understanding of the Ordinance and the
procedures in processing employees' compensation cases.
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| 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. |
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Protection of Wages on Insolvency Fund Board
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| 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.
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| 6.26 |
We
provide administrative support to the Protection of Wages
on Insolvency Fund Board by verifying applications and
approving payments from the Fund. In 2004, we received
13 631 applications, a substantial drop of
39 per cent as compared with 22 350 in 2003.
We processed a record high of 22 071 applications,
leading to payments of $381 million. A breakdown of applications
received by economic sectors was shown in Figure
6.6. The Fund Board secured a government bridging
loan of $695 million in 2002 and made the first drawdown
of $22 million in March 2004 in order to enable the Fund
to tide over its short-term cash flow problem. As the
economy continued to improve, the number of applications
decreased. The Fund turned from deficit to a surplus of
$49 million by the end of 2004.
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| 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 was set up in 2002 to further
prevent possible abuse.
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Pneumoconiosis Compensation Fund Board
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| 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. As at the end of 2004, 1
995 eligible persons were receiving compensation
in the form of monthly payments from the PCFB. In the
year, the Board made a total compensation payment of $165
million.
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Employees Compensation Assistance Fund Board
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| 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. In 2004, the Board approved 282 applications,
leading to payments of $132 million. With effect from
1 April 2004, the Employees Compensation Insurers Insolvency
Bureau established by the insurance industry has taken
over from the ECAFB the responsibility of meeting the
liabilities arising from employees' compensation insurance
policies in the event of the insolvency of the relevant
insurers.
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Occupational Deafness Compensation Board
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| 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 2004, the Board received 198 applications for compensation
and approved 52 applications with a total compensation payout
at about $5.9 million. The Board also received 467 applications
in relation to the payment of expenses on hearing assistive
devices and approved 488 applications which included applications
received in the previous year. The total approved amount
was about $2.1 million. |