Chapter 3 Labour Relations

The Programme of Labour Relations

www.labour.gov.hk/eng/labour/content.htm

3.1	In Hong Kong, employer and employee relations are largely premised on the stipulations of various pieces 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.
3.2	The 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).
3.3	The 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 2019 Key Indicators of Work
3.4	Some key indicators of work of the Labour Relations Programme Area are contained in Figure 3.1.
Improvement to Employees’ Benefits
3.5	The Employment (Amendment) (No. 3) Ordinance 2018 took effect from 18 January 2019 to increase statutory paternity leave from three days to five days.
3.6	During the year, the Government completed the drafting of the Employment (Amendment) Bill 2019 which sought to extend statutory maternity leave from the current 10 weeks to 14 weeks. The bill was introduced into the Legislative Council (LegCo) on 8 January 2020 and was subsequently passed on 9 July 2020.
3.7	Regarding the abolition of the arrangement of “offsetting” severance payment and long service payment with the accrued benefits attributable to employers’ mandatory contributions under the Mandatory Provident Fund System, the Labour Department (LD) worked in full steam on the preparatory work, including thrashing out the implementation details of the supporting measures and commencing drafting of the enabling legislation, in collaboration with relevant bureaux and departments in the year with a view to coming up with the enabling bill for introduction into the LegCo.
Conciliation and Consultation Services
3.8	Our conciliation and consultation services are conducive to maintaining harmonious industrial relations in Hong Kong. In 2019, we held 65 343 consultation meetings, and handled 13 755 claims and 76 labour disputes. Over 70% of cases with conciliation service rendered were settled in the year. (Figures 3.2, 3.3, 3.4, 3.5, 3.6 and 3.7)
Strengthening Tripartite Cooperation
3.9	The 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 work arrangements in times of typhoons and rainstorms were deliberated in the year.
Industry-based tripartite committees run by the Labour Department providing effective forums for members to discuss issues of common concern to their industries
Promotion of Good Employer-Employee Relations
3.10	To 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. In the year, six roving exhibitions were organised over the territory. We also widely publicised messages about good human resource management as well as statutory employment rights and protection through the extensive network of employers’ associations and trade unions. Furthermore, to promote employee-oriented and progressive good human resource management practices, we launched the Good Employer Charter 2020 featuring the theme of “Family-friendly Good Employer”. Employers were encouraged to empathically consider the family role of their employees and suitably adopt family-friendly employment practices.
Free publications enhancing public understanding of the Employment Ordinance and promoting good human resource management culture
Kick-off ceremony of the Good Employer Charter 2020 to promote employee-oriented and progressive good human resource management practices
3.11	We organised a number of experience-sharing sessions and briefings and published newsletters regularly 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 trade union federations to promote culture on good human resource management and encourage employers to jointly cultivate a family-friendly working environment. In the year, we revised and extensively promoted the “Code of Practice in Times of Typhoons and Rainstorms” for employers and employees pursuant to the Government’s review of the handling of super typhoons. Employers and employees were advised to draw up as early as possible their work arrangements in times of adverse weather conditions for ensuring the safety of employees and smooth operation of establishments and maintaining good labour-management relations.
Regular experience-sharing sessions and briefings for members of human resources managers’ clubs established in different trades
Adjudication of Minor Employment Claims
3.12	The MECAB provides a speedy, informal and less costly adjudication service for members of the public. It is empowered to determine employment claims involving not more than 10 claimants for a sum not exceeding $8,000 per claimant.
3.13	In 2019, the MECAB recorded 561 claims amounting to $2,492,920 and concluded 570 claims with a total award of $1,380,184.
Administration of Trade Unions
3.14	The 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 account 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.
3.15	In 2019, 25 new trade unions were registered, making up a cumulative total of 928 trade unions (comprising 866 employee unions, 12 employers’ associations, 39 mixed organisations of employees and employers and 11 trade union federations) registered under the TUO. Please refer to the following webpage for the key trade union statistics: www.labour.gov.hk/eng/labour/content3.htm.
3.16	In the year, the RTU examined 629 annual statements of account and conducted 360 visits to trade unions with a view to promoting sound and responsible trade union administration. To facilitate trade union officers in acquiring knowledge of union legislation and management, the RTU organised four courses on trade union bookkeeping and trade union management and legislation.