The Statutory Minimum Wage comes into force on 1 May 2011 and the initial Statutory Minimum Wage rate is $28 per hour. The Minimum Wage Ordinance establishes an SMW regime aimed at striking an appropriate balance between forestalling excessively low wages and minimizing the loss of low-paid jobs while sustaining Hong Kong’s economic growth and competitiveness. Neither the Minimum Wage Ordinance nor the Employment Ordinance prescribes that meal break and rest days should be paid. Whether meal break and rest days are with pay or otherwise are matters to be agreed between employers and employees.
SMW applies to all employees, whether they are full-time, part-time or casual employees, and ...view middle of the document...
Increasing operating cost together with the pressure from inflation causing a“ripple effect”. They may choose to transfer part of the costs to customers which would affect their business. Also, the willingness of hiring for summer jobs and no experience applicants would be reduced. In order to reduce expenditures, the employers may lay off staff, reduce their working hours or contract out the process. This may destroy the relationship among employers and employees and they may be even labeled as” unscrupulous employers”.
How about the employee? Are they satisfied after the rise in income? Oppositely, they feel more stressful with increasing workload and higher expectation from employers.
The life has not improved
Only meet their basic living needs
Cannot overtake the inflation
Cannot solve the disparities in wealth
Lack of confidence in the statutory wage
Lack of competitiveness
Poor may be difficult to find jobs
Apprenticeship ⋄ unemployed?!
A side effect
distorting social values
Cannot provide quality jobs to grass-roots
Problems of minimum wage
Unclear guidelines for meal breaks and rest days
Minimum wage law has not specific if salary should include meal breaks and rest days
Business/ employers tend to maximize profit
Employees are on the unprivileged side to fight for their salaries
Employees may not receive a significant increase in salaries
Cannot fulfill the aim of Minimum Wage
Lack of regular review of the law
No regular review mechanism for Minimum Wage
Ignore the effect of current factors/ situation
Cannot catch up with society’s need
Inflation can off set the increase in salary
Minimum Wage has no effect
Minimum Wage level need to be review
Exploitation of employees
Minimum wage increase the business cost of employers
To avoid the increase in salary cost
Cases of 假自僱 may increase
However, difficult to prosecute
E.g.: 2009-2010 : 317 complains, 24 cases prosecuted, 17 successed
Reduce of working hours?
Reduce of labour...