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Report of the Commissioner for Labour 2000

Chapter 3 : Labour Legislation

3.1 The enforcement of labour legislation is one of the major responsibilities of the Labour Department. As at 31 December 2000, there were 12 sets of labour legislation being administered by the Labour Department. They are listed in Appendix I. Appendix II gives information on those labour legislation enacted in 2000.

Major Legislation Administered by the Labour Department Labour Relations

Employment Ordinance
3.2 The Employment Ordinance is the main piece of legislation governing conditions of employment in the non-government sector. Enacted in 1968, the ordinance has gradually been amended to become a comprehensive set of employment standards.

3.3 Among other things, the ordinance provides for the following benefits and protection:
* Wage protection
* Rest days
* Holidays with pay
* Paid annual leave
* Sickness allowance
* Maternity protection
* Severance payment
* Long service payment
* Termination of employment contract
* Protection against anti-union discrimination
* Employment protection

Labour Relations Ordinance
3.4 The Labour Relations Ordinance provides for the procedures of settling labour disputes in the non-government sector. Ordinary conciliation is the first step to take. Failing to settle the dispute, the Commissioner for Labour may appoint a special conciliation officer to undertake special conciliation. The Commissioner may, whether or not ordinary conciliation or special conciliation has been attempted, appoint a mediator or a board of mediation and refer the dispute to mediation. In the event that no settlement can be reached through ordinary conciliation or special conciliation, the Chief Executive in Council may refer the dispute to arbitration subject to the consent of both parties, or to a board of inquiry or take other actions as the circumstances of the dispute may warrant. Where a dispute is of such a nature or scale as to have a grave effect on the economy of Hong Kong or to endanger the lives of a substantial number of people, the Chief Executive in Council may make an order for a cooling-off period of not exceeding 30 days, which can be extended to a total of 60 days, during which all forms of industrial action and acts of discrimination against employees are banned.

Trade Unions Ordinance
3.5 The Trade Unions Ordinance makes provisions for the registration of trade unions. Any combination of persons the principal objects of which are, under its constitution, the regulating of relations between employees and employers, or between employees and employees, or between employers and employers is required to be registered under the ordinance. The ordinance also provides for other matters ancillary to the better administration of trade unions such as application of funds, making of rules, and rights and liabilities of trade unions.

Minor Employment Claims Adjudication Board Ordinance
3.6 The Minor Employment Claims Adjudication Board Ordinance establishes a machinery known as the Minor Employment Claims Adjudication Board within the Labour Department to adjudicate minor employment claims when settlement cannot be achieved through conciliation by the Labour Relations Division.

3.7 The Minor Employment Claims Adjudication Board Ordinance was amended on 25 June 1997 to expand the jurisdiction of the board. The amendment empowered the board to determine claims involving not more than 10 claimants for a sum not exceeding
$8,000 per claimant.

Safety And Health At Work
Occupational Safety and Health Ordinance and its Subsidiary Regulation

3.8 With few exceptions, the Occupational Safety and Health Ordinance protects employees' safety and health at work in practically all branches of economic activities, both industrial and non-industrial. It covers those working in offices, commercial premises, schools, hospitals, clinics, laboratories and other workplaces. It is basically an enabling legislation that empowers the Commissioner for Labour to make regulations prescribing standards for general working environment as well as specific safety and health aspects at work.

3.9 The Occupational Safety and Health Regulation made under the ordinance, sets down some basic requirements for accident prevention, fire precaution, workplace environment control, hygiene at workplaces, first aid and manual handling operations.

Factories and Industrial Undertakings Ordinance and its Subsidiary Regulations
3.10 The Factories and Industrial Undertakings Ordinance and its 29 sets of regulations are the principal legislation in Hong Kong regulating safety and health at work in industrial undertakings, which include factories, construction sites, cargo and container handling areas, as well as catering establishments.

3.11 New provisions were approved in 2000 to regulate the safe operation of load shifting machines, including training and certification of operators, and to strengthen control over the notification requirement of notifiable workplaces, construction sites, works in compressed air and asbestos works.

Boilers and Pressure Vessels Ordinance and its Subsidiary Regulations
3.12 The Boilers and Pressure Vessels Ordinance and its subsidiary regulations aim at regulating the standards and operation of equipment such as boilers, pressure vessels, including thermal oil heaters, steam receivers, steam containers, air receivers and pressurised cement tanks mounted on trucks or trailers. They require that such equipment must be registered with the Authority, i.e. the Commissioner for Labour, and examined initially and periodically by examiners appointed by the Authority.

Employment Services

Employment Agency Regulations
3.13 Part XII of the Employment Ordinance and the Employment Agency Regulations regulate the operation of employment agencies in Hong Kong and safeguard the interests of job-seekers, in particular against being overcharged, by way of licensing and inspection of employment agencies, investigation of complaints and prosecution of offenders.

Contracts for Employment Outside Hong Kong Ordinance
3.14 The Contracts for Employment Outside Hong Kong Ordinance safeguards the interests of local manual workers and those non-manual employees with monthly wages not exceeding $20,000 who are recruited to work outside Hong Kong by outside Hong Kong employers. The ordinance requires the two parties to enter into an employment contract, which should provide the employee involved with appropriate terms on protection and benefits and be attested by the Commissioner for Labour before the departure of the employee from Hong Kong.

Employee Rights And Benefits

Employees' Compensation Ordinance
3.15 The Employees' Compensation Ordinance 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 take out insurance to cover their liabilities, which may arise out of the ordinance or common law. The amount of compensation payable, subject to a maximum, is calculated with reference to the earnings, age and extent of loss of earning capacity of an injured employee. The ordinance covers all employees, irrespective of the nature of their employment and level of earnings. It also applies to work accidents that happen outside Hong Kong to employees who are required to attend to duty outside Hong Kong. The ordinance was amended during the year to improve the system of settling compensation claims for fatal cases.

Pneumoconiosis (Compensation) Ordinance
3.16 The Pneumoconiosis (Compensation) Ordinance provides compensation to persons who suffer from silicosis or asbestos-related diseases. Compensation is paid from the Pneumoconiosis Compensation Fund, which is administered by the Pneumoconiosis Compensation Fund Board. During the year, the ordinance was amended to reduce the rate of levy payable by the construction and quarry industries and to raise the maximum amount of funeral expenses.

Protection of Wages on Insolvency Ordinance
3.17 The Protection of Wages on Insolvency Ordinance provides for the establishment of the Protection of Wages on Insolvency Fund and its administration by a board. Under the ordinance, employees who are owed wages, wages in lieu of notice and severance payments by their insolvent employers may apply to the fund for ex gratia payments. The concerned applications should be made within six months after employees'last day of service.

3.18 The Protection of Wages on Insolvency Fund is financed by an annual levy of $250 on each business registration certificate. At present, the fund covers wages not exceeding $36,000 accrued during a period of four months preceding the last day of service; wages in lieu of notice for termination of up to $22,500 or one month's wages, whichever is less; and severance payment up to $50,000, plus 50 per cent of any excess entitlement under the Employment Ordinance.

Employment of Children Regulations
3.19 The Employment of Children Regulations made under the Employment Ordinance prohibit the employment of children below the age of 15 in any industrial undertakings and regulate the employment of children in non-industrial establishments.

Women and Young Persons (Industry) Regulations
(Amended as Employment of Young Persons (Industry) Regulations in April 2001)
3.20 The Women and Young Persons (Industry) Regulations, also made under the Employment Ordinance, set out various requirements concerning the working hours of young persons employed in the industrial sector and regulate their employment in dangerous trades.