Two members of the Labour advisory Board said they were surprised to hear reports about plans to scrap the Mandatory Provident Fund's offset mechanism next year.
Sing Tao newspaper reported that the Chief Executive CY Leung may announce the termination of the mechanism in his policy address next year. The controversial system allows employers to use their MPF contributions to cover severance or long-service payments to their staff. It has long been criticised as being unfair to employees.
Speaking on an RTHK programme on Thursday, the two advisers to the government said they have not heard of any plans to axe the mechanism by next year.
An employee representative, Leung Chau-ting, said it is a good idea, but it should be done in phases. Leung said the chief executive had promised in 2012 to reduce the percentage of withdrawals allowed by an employer for the offset mechanism, and he ought now to keep his promise.
Another board member, Stanley Lau, who represents employers, said the move may drive up business costs. Lau said the government should review the system before canceling the mechanism hastily.
The Labour Secretary, Matthew Cheung, had earlier said that the government has no preferences on the issue at the moment.
Sing Tao newspaper reported that the Chief Executive CY Leung may announce the termination of the mechanism in his policy address next year. The controversial system allows employers to use their MPF contributions to cover severance or long-service payments to their staff. It has long been criticised as being unfair to employees.
Speaking on an RTHK programme on Thursday, the two advisers to the government said they have not heard of any plans to axe the mechanism by next year.
An employee representative, Leung Chau-ting, said it is a good idea, but it should be done in phases. Leung said the chief executive had promised in 2012 to reduce the percentage of withdrawals allowed by an employer for the offset mechanism, and he ought now to keep his promise.
Another board member, Stanley Lau, who represents employers, said the move may drive up business costs. Lau said the government should review the system before canceling the mechanism hastily.
The Labour Secretary, Matthew Cheung, had earlier said that the government has no preferences on the issue at the moment.
http://news.rthk.hk/rthk/en/component/k2/1211923-20150917.htm
