POLS 7050 HKBU/MPA Exclusions from Minimum Wage Legislation

Exclusions from Exclusions from

Minimum Wage LegislationMinimum Wage Legislation

POLS 7050 Public AdministrationPOLS 7050 Public Administration

Team Members:Team Members:

Grace Leung Tse Wai 09410236Grace Leung Tse Wai 09410236

Phoebe LAU Siu Yin 09410295Phoebe LAU Siu Yin 09410295

Exclusions from Proposed Statutory Minimum Wage (SMW) Bill

• In HK, exclusion of domestic workers and student interns are suggested.

• Examples of other countriesDomestic workers (South Korea, Guangdong, Shenzhen)

Trainees (Australia, France, Japan, UK)

Young Workers (US, UK)

Fishermen (Taiwan,UK)

Professionals (US)

(A) Exclusion of All Live-in Domestic Workers (both foreign and local)

1. Distinctive working pattern

2. Enjoyment of in-kind benefits

3. Possible significant and far-reaching socio-economic ramifications

4. Fundamental erosion of the Foreign Domestic Helper Policy

Our Comments

Exclusion of Foreign Domestic Helpers (FDHs) Justified

Financial difficulties of Employers • $3580 vs $4800 (↑ 34%)

• may lead to large unemployment of FDHs

Induce social problems that harm harmony

Under protection from Minimum Allowable Wage

Good and Prevailing FDH Policy

Conditions of Employment and Stay• Practical difficulty in alternative lodging

Our Comments (Cont’d) Exclusion of Local Live-in Domestic Workers

gardeners, boat boys, post-natal care workers & live-in farmers

A group of vulnerable ought to be protected

No entitlements guaranteed that FDHs are entitled

Our Comments (Cont’d)

Different identities i.e. Nationality/ citizenship

Risky to classify local & foreign “live-in domestic workers” as same group

The Locals could attempt the judiciary review on the exclusion from SMW

• provide a bullet for FDHs to fight

Our recommendations• To include local live-in domestic workers but

allow conditional arrangements wage deduction on free lodging & food

• To exclude “Foreign Domestic Helpers” under the “Standard Employment Contract”

• To lobby the FDH employers’ unions and FDH unions to illustrate possible costs and outcomes, e.g.

financial burdens of employers

unemployment of FDHs

Our Recommendations (Cont’d)

• To restate the importance of Importation of Labour Policy and protection under the regular minimum allowable wage and its review mechanism

• To align with Race Discrimination Ordinance (Cap. 602) & Employment Ordinance (Cap. 57)

(B) Exclusion of Student Interns

Internship forming a compulsory or elective part of the requirement for the award of the academic qualifications in full-time locally-accredited programmes. The interns should be arranged or endorsed by specified local education institutions.

Our Comments

1. Importance of Internship programme

2. Hosting companies will offer less position if SMW is enacted

3. High cost to have “Blanket Exemptions”

Our Recommendations

1. To exempt students undertaking internship overseas programmes.

2. Students responsible to provide sufficient programme information (as a proof of compulsory part in achieving the award)

Special Arrangement for Vulnerable Group

B. Young Workers / Apprentices

C. Persons With Disability (PWD)

(A) Young Worker / Apprentices

For Young Worker…

In US, employers have to pay the SMW after 90 consecutive days of employment or when the employee reaches 20 years of age.

For Apprentice…

In France, apprentices are paid accordingly to their age and qualification.

Our Recommendations

1. Safeguarding their job opportunities

2. To recommend youth worker (say under 20) could have flexibility to receive less than SMW during the probationary period.

3. To recommend government service contract should be restricted tenders and priority should be given to social enterprises operated by NGOs.

(B) Persons With Disability1. NO DIFFERENCE from their able-bodied

counterparts.

2. Comparatively lower productive capability because of their disability.

3. How to safeguard their employment ? Excluded: France, Guangdong, Shenzhen and

South Korea.

Receive wages corresponding to a percentage of the SMW: Australia, Taiwan and US.

Receive SMW when one able to perform job duties: UK and Japan.

• In Hong Kong, Assessment Mechanism is suggested

Determine the rate of SMW

Initiated by the PWD and assessed by an approved assessor.

A probationary period (say 4 weeks) before the assessment is conducted.

Our Comments

Registration Card for PWDs as a proof of his/her disability status

Actual no. of PWDs subject to assessment is uncertain

Underestimate the cost of conducting assessment

Subject to one-off assessment

Our Recommendations

1. Re-assessment after certain period of time (say 1 year)

2. Establishment of appeal mechanism

3. Amend Disability Discrimination Ordinance (Cap. 487)

4. To support NGOs to operate social enterprises on a sustainable basis by awarding restricted tenders or introduction of tax concessions.

“The function of the Government is to secure conditions upon which its citizens are able to win by their own efforts all that is necessary to a full civic efficiency…The “right to work” and the right to a “living wage” are just as valid as the rights of person or property.”

- Leonard Hobhouse 1911.

Thank You!Thank You!

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