Chapter 3 Labour Relations
www.labour.gov.hk/eng/labour/content.htm
3.1In Hong Kong, employer and employee relations are largely premised on the stipulations of labour laws, and the terms and conditions of employment agreed and entered into between the two parties. Employers and employees are free to form trade unions and participate in union activities. The objective of the Labour Relations Programme is to maintain and promote harmonious labour relations in establishments outside the government sector. We achieve this by:
- giving advice on matters relating to conditions of employment, requirements of relevant labour legislation, and good human resource management practices;
- providing voluntary conciliation service to help employers and employees resolve their employment claims and labour disputes;
- promoting understanding of labour laws and encouraging good human resource management practices;
- adjudicating minor employment claims speedily through the Minor Employment Claims Adjudication Board (MECAB); and
- registering trade unions and their rules, organising courses and conducting visits to trade unions to bring about sound and responsible trade union administration.
3.2The principal legislation administered by this programme area includes the Employment Ordinance (EO), the Minimum Wage Ordinance (MWO), the Labour Relations Ordinance (LRO), the Minor Employment Claims Adjudication Board Ordinance (MECABO) and the Trade Unions Ordinance (TUO).
3.3The EO sets the basic standard on the conditions of employment that establishments outside the government sector have to meet. The MWO establishes a Statutory Minimum Wage regime. The procedures for settling labour disputes in establishments outside the government sector are provided for in the LRO. The MECABO establishes the machinery known as the MECAB to adjudicate minor employment claims when settlement cannot be achieved by conciliation. For the regulation of trade unions, the TUO provides a statutory framework for trade union registration and administration.
Our Work and Achievements in 2021
Key Indicators of Work
3.4Some key indicators of work of the Labour Relations Programme Area are contained in Appendix 3.1.
Improvement to Employees’ Benefits
3.5The Government introduced the Employment (Amendment) Bill 2021 into the Legislative Council on 17 March 2021 to increase progressively the number of statutory holidays from 12 days to 17 days so that it would be on a par with the number of general holidays other than Sundays. The Bill was passed on 7 July 2021 to become the Employment (Amendment) Ordinance 2021. The first newly-added statutory holiday is the Birthday of the Buddha in May 2022.
3.6The Labour Department (LD) continued working at full steam on drafting legislation and formulating operational arrangements to abolish the practice of employers using their mandatory contributions under the Mandatory Provident Fund System and other retirement fund contributions to offset their employees’ severance payment and long service payment. The government subsidy scheme assisting the business sector to adapt to the policy change was refined to provide more targeted support for employers (especially micro, small and medium-sized enterprises).
Conciliation and Consultation Services
3.7Our conciliation and consultation services are conducive to maintaining harmonious industrial relations in Hong Kong. In 2021, we held 44 178 consultation meetings, and handled 11 064 claims and 48 labour disputes. Over 70% of cases with conciliation service rendered were settled in the year. (Appendices 3.2, 3.3, 3.4, 3.5, 3.6 and 3.7)
Strengthening Tripartite Cooperation
3.8The LD runs nine industry-based tripartite committees, covering catering, cement and concrete, construction, hotel and tourism, logistics, printing, property management, retail and theatre industries, to promote tripartite dialogue and collaboration at the industry level with a view to fostering harmonious labour relations among employers, employees and the Government. These tripartite committees provide effective forums for members to discuss issues of common concern to their industries. Employment-related matters such as good human resource management, labour relations and employment situation of the industries as well as workplace consultation were deliberated in the year.
The industry-based tripartite committees run by the Labour Department provide effective forums for members to discuss issues of common concern to their industries
Promotion of Good Employer-Employee Relations
3.9To enhance public understanding of the EO and to promote good human resource management culture, the LD organised various promotional activities and published free publications covering different themes for employers, employees, human resources professionals and the public. Relevant information was also disseminated through the LD’s homepage and the media. We also widely publicised messages about good human resource management as well as statutory employment rights and protection, including the progressive increase in the number of statutory holidays under the Employment (Amendment) Ordinance 2021, through the extensive network of employers’ associations and trade unions. Furthermore, to promote employee-oriented and progressive good human resource management practices, we continued the Good Employer Charter initiative, featuring the theme of “Family-friendly Good Employer”, to encourage employers to empathically consider the family role of their employees and suitably adopt family-friendly employment practices.
The Labour Department published free publications covering different themes to enhance public understanding of the Employment Ordinance and to promote good human resource management culture
The Labour Department continued implementing the Good Employer Charter. Selected cases of family-friendly employment practices adopted by signatory organisations were featured in the booklet/e-book titled “Tips on Good Human Resource Management and Family-friendly Employment Practices”
3.10The LD organised experience-sharing sessions and briefings and published newsletters for members of 18 human resources managers’ clubs established in different trades. We also published newspaper articles and comic strips, and placed advertisements in public transport network and periodic journals of major employers’ associations and labour organisations to promote good human resource management. In the year, we produced a new series of radio promotion soundtracks to broadcast messages on the EO and good human resource management. Besides, the new booklets / e-books “Tips on Good Human Resource Management and Family-friendly Employment Practices” and the revised leaflets “Family-friendly Workplace” were distributed through various channels with a view to encouraging employers to adopt good human resource management and family-friendly employment practices.
The Labour Department organised experience-sharing sessions and briefings for members of human resources managers’ clubs established in different trades
Adjudication of Minor Employment Claims
3.11The MECAB provides a speedy, informal and less costly adjudication service for members of the public. With effect from 17 September 2021, the jurisdiction of the MECAB in terms of the claim ceiling of each claimant was increased from $8,000 to $15,000, while retaining the maximum number of claimants per claim at 10.
3.12In 2021, the MECAB recorded 506 claims amounting to $2,484,969 and concluded 508 claims with a total award of $1,153,366.
Administration of Trade Unions
3.13The Registry of Trade Unions (RTU) is responsible for administering the TUO and the Trade Union Registration Regulations. Its major areas of work include registering trade unions and their rules, examining trade unions’ annual statements of accounts and any other returns required by the law to be furnished to the RTU, organising courses on trade union legislation and fundamental account management for trade unions, and conducting visits to trade unions to facilitate trade unions to manage union affairs in accordance with the law and their respective rules.
3.14In 2021, the RTU completed 183 registrations of new trade unions (comprising 180 trade unions and three trade union federations). As at end-2021, trade unions registered under the TUO totalled 1 542 (comprising 1 472 employee unions, 12 employers’ associations, 43 mixed organisations of employees and employers and 15 trade union federations). Please refer to the following webpage for the key trade union statistics: www.labour.gov.hk/eng/labour/content3.htm.
3.15In the year, the RTU examined 1 294 annual statements of accounts and conducted 353 visits to trade unions with a view to promoting sound and responsible trade union administration. The RTU organised three courses to enhance trade union officers’ understanding of union management and trade union bookkeeping.