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Proposed Suspensions of levy do more harm than good |
Mon, 08/04/2008 - 16:05 — wkf
27 July 2008
Amnesty International -- Hong Kong Section
Hong Kong Human Rights Monitor
1. On 16 July 2008, the Chief Executive Donald Tsang announced the Government’s intention to suspend the employee retraining levy for the next two years for new employment contracts to be concluded from 1 September 2008.
2. Upon its announcement, the livelihoods of Foreign Domestic Workers (‘FDWs’) were immediately put at risk. There were imminent fears that unscrupulous employers would terminate or delay the renewal of existing contracts so as to immediately benefit from the new policy. A number of FDWs have already been sacked for this reason according to one FDW group.
3. At the brink of triggering a wave of massive layoffs, the Secretary for Labour and Welfare, Mr. Matthew Cheung, defended his policy by stating that “if employers terminate contracts, they have to pay for the air ticket, one month's pay and wages for the helper's holidays.” The Government nevertheless insisted on implementing the said proposal, saying that it will “benefit more than 16,000 employers,” and announced on 21 July 2008, that the domestic helper levy suspension may start to take effect at the beginning of August this year in the hope that by moving the effectivity of the levy concession a month earlier, the risk of a massive layoff would be avoided. This concession by the government impliedly recognized that it had not foreseen many of the adverse consequences of its announcement for FDWs.
4. The proposed policy to suspend levy is part of the inflation relief package announced by Chief Executive in an attempt to alleviate the burden of the employers of FDWs. But this policy does not offer any relief for the employers who currently have effective contracts or any contract that take effect before the policy implementation date. It has unmasked the Government’s lack of concern for the FDWs as it has refused to admit that the ultimate burden of the levy it imposed in the first place did not fall on the employers, but on the shoulders and pockets of the FDWs. It is FDWs who have suffered the wage cut and the implementation of the levy.
5. The Government’s failure to consider insufficient detail how the policy would affect employers of FDWs is only part of the story. The Government does not realize that this proposal is not only superficial, but discriminatory as well. Neither other expatriates nor their employers are required to pay levy, nor the local employees and their employers. The Government must see that the FDWs are vital contributors to the progress and development of Hong Kong, and their contributions must be acknowledged and taken into consideration when it comes up with proposals to help the people of Hong Kong deal with inflation and its effects
6. We strongly urge the Government (Chief Executive) to reduce, from the date the levy is suspended, the amount of foreign domestic helper levy to zero with immediate effect for all contracts. It should also refund the portion of levy already paid but for the period after the date of suspension. With these measures in place, employers would cease to terminate existing contracts or to suspend new or renewal of contracts. Other necessary arrangements, administrative and legislative, have to be put in place as soon as possible for the refund.
7. We also urge the Government to compensate for any premature terminations of employment contracts affected by the announcement of the new proposal and to provide financial assistance to those FDWs who are facing a desperate financial situation as a result of the said proposal. In this regard, the Government should also amend the relevant law and policy, to at least suspend the "two-week rule", and to allow FDWs who were prematurely terminated, to stay in Hong Kong in search for new employers. The employers who prematurely terminated the FDWs contracts should pay in cash for the FDWs’ air tickets, so that unscrupulous employers who have already terminated their existing employment contracts would not benefit from the new proposal. This measure should also be taken as to avoid massive layoffs by employers who want to save the cost on air tickets. If the FDWs were unable to fully claim their entitlements from employers, the Government, in order to account for their haste and poorly thought-out policy, should take on the responsibility to compensate the amount thereof, and where appropriate, set up civil claims against the respective employers for the compensated amount.
8. The Secretary for Labour and Welfare Mr. Matthew Cheung should revise the policy immediately. Failing to do so, human rights organizations may have to consider asking for his resignation so as to be accountable for the loss of jobs or other employment benefits of the FDWs affected.
9. The lowering of the minimum allowable wage for the FDWs in 2003 has resulted in a similar wave of sacking of FDWs. The Government has not learned from such an experience and has again formulated policies that sacrifice the interests of FDWs.
10. It is appalling that the Government refuses and continues to fail to take into account the interests of migrant workers in the formulation of policies. The recent levy saga is yet another example of the general lack of cultural sensitivity and awareness of FDW interest that persists within the Government bureaucracy, especially in the Employment Bureau and the immigration autorities.
11. To prevent similar incidents from repeating, we strongly call for the Government to implement an effective and coherent scheme of a Race Equality Plan – one which would require the Government to assess the impact of proposed policies and monitor existing policies by reference to racial minorities groups - to guide its policy-making. The Government should seek the input from various racial minorities groups in order to reduce the current negligence, ignorance, prejudice and arrogance in Government, especially in formulation policies that might impact racial minorities. Racial Equality Plan should assist the Government in shaping policies that are beneficial to the public while ensuring that racial minorities' interests would not be overlooked or sacrificed.
12. Finally, we reiterate our strong demand for the outright abolition of the unjust foreign domestic helper levy and the two-week rule. We appeal to the public at large to support the rights of FDWs and stop the Government from further acting irresponsibly in choosing to or unwittingly sacrifice the interests of the FDWs and thereby doing further injustices to the FDWs.
Enquiries ：
Director, Hong Kong Human Rights Monitor: Law Yuk Kai（Tel：9788 3394 or 2811 4488）
locale_link:
http://www.amnesty.org.hk/chi/node/20053
Amnesty International -- Hong Kong Section
Hong Kong Human Rights Monitor
1. On 16 July 2008, the Chief Executive Donald Tsang announced the Government’s intention to suspend the employee retraining levy for the next two years for new employment contracts to be concluded from 1 September 2008.
2. Upon its announcement, the livelihoods of Foreign Domestic Workers (‘FDWs’) were immediately put at risk. There were imminent fears that unscrupulous employers would terminate or delay the renewal of existing contracts so as to immediately benefit from the new policy. A number of FDWs have already been sacked for this reason according to one FDW group.
3. At the brink of triggering a wave of massive layoffs, the Secretary for Labour and Welfare, Mr. Matthew Cheung, defended his policy by stating that “if employers terminate contracts, they have to pay for the air ticket, one month's pay and wages for the helper's holidays.” The Government nevertheless insisted on implementing the said proposal, saying that it will “benefit more than 16,000 employers,” and announced on 21 July 2008, that the domestic helper levy suspension may start to take effect at the beginning of August this year in the hope that by moving the effectivity of the levy concession a month earlier, the risk of a massive layoff would be avoided. This concession by the government impliedly recognized that it had not foreseen many of the adverse consequences of its announcement for FDWs.
4. The proposed policy to suspend levy is part of the inflation relief package announced by Chief Executive in an attempt to alleviate the burden of the employers of FDWs. But this policy does not offer any relief for the employers who currently have effective contracts or any contract that take effect before the policy implementation date. It has unmasked the Government’s lack of concern for the FDWs as it has refused to admit that the ultimate burden of the levy it imposed in the first place did not fall on the employers, but on the shoulders and pockets of the FDWs. It is FDWs who have suffered the wage cut and the implementation of the levy.
5. The Government’s failure to consider insufficient detail how the policy would affect employers of FDWs is only part of the story. The Government does not realize that this proposal is not only superficial, but discriminatory as well. Neither other expatriates nor their employers are required to pay levy, nor the local employees and their employers. The Government must see that the FDWs are vital contributors to the progress and development of Hong Kong, and their contributions must be acknowledged and taken into consideration when it comes up with proposals to help the people of Hong Kong deal with inflation and its effects
6. We strongly urge the Government (Chief Executive) to reduce, from the date the levy is suspended, the amount of foreign domestic helper levy to zero with immediate effect for all contracts. It should also refund the portion of levy already paid but for the period after the date of suspension. With these measures in place, employers would cease to terminate existing contracts or to suspend new or renewal of contracts. Other necessary arrangements, administrative and legislative, have to be put in place as soon as possible for the refund.
7. We also urge the Government to compensate for any premature terminations of employment contracts affected by the announcement of the new proposal and to provide financial assistance to those FDWs who are facing a desperate financial situation as a result of the said proposal. In this regard, the Government should also amend the relevant law and policy, to at least suspend the "two-week rule", and to allow FDWs who were prematurely terminated, to stay in Hong Kong in search for new employers. The employers who prematurely terminated the FDWs contracts should pay in cash for the FDWs’ air tickets, so that unscrupulous employers who have already terminated their existing employment contracts would not benefit from the new proposal. This measure should also be taken as to avoid massive layoffs by employers who want to save the cost on air tickets. If the FDWs were unable to fully claim their entitlements from employers, the Government, in order to account for their haste and poorly thought-out policy, should take on the responsibility to compensate the amount thereof, and where appropriate, set up civil claims against the respective employers for the compensated amount.
8. The Secretary for Labour and Welfare Mr. Matthew Cheung should revise the policy immediately. Failing to do so, human rights organizations may have to consider asking for his resignation so as to be accountable for the loss of jobs or other employment benefits of the FDWs affected.
9. The lowering of the minimum allowable wage for the FDWs in 2003 has resulted in a similar wave of sacking of FDWs. The Government has not learned from such an experience and has again formulated policies that sacrifice the interests of FDWs.
10. It is appalling that the Government refuses and continues to fail to take into account the interests of migrant workers in the formulation of policies. The recent levy saga is yet another example of the general lack of cultural sensitivity and awareness of FDW interest that persists within the Government bureaucracy, especially in the Employment Bureau and the immigration autorities.
11. To prevent similar incidents from repeating, we strongly call for the Government to implement an effective and coherent scheme of a Race Equality Plan – one which would require the Government to assess the impact of proposed policies and monitor existing policies by reference to racial minorities groups - to guide its policy-making. The Government should seek the input from various racial minorities groups in order to reduce the current negligence, ignorance, prejudice and arrogance in Government, especially in formulation policies that might impact racial minorities. Racial Equality Plan should assist the Government in shaping policies that are beneficial to the public while ensuring that racial minorities' interests would not be overlooked or sacrificed.
12. Finally, we reiterate our strong demand for the outright abolition of the unjust foreign domestic helper levy and the two-week rule. We appeal to the public at large to support the rights of FDWs and stop the Government from further acting irresponsibly in choosing to or unwittingly sacrifice the interests of the FDWs and thereby doing further injustices to the FDWs.
Enquiries ：
Director, Hong Kong Human Rights Monitor: Law Yuk Kai（Tel：9788 3394 or 2811 4488）
Created:04/08/2008