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LCQ 4: Underpayment and Overcharging of Foreign Domestic Helpers

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Following is a question by the Hon James Tien and a reply by the Secretary for Economic Development and Labour, Mr Stephen Ip, in the Legislative Council today (January 22):

Question:

Will the Government inform this Council whether it has:

(a) investigated cases in which employers paid their foreign domestic helpers (FDHs) less salaries than the minimum allowable wage; if it has, of the results;

(b) investigated cases in which employment agencies overcharged FDHs; if it has, of the results;

(c) any concrete plans to prohibit the above unlawful practices; if it has, of the results; if not, the reasons for that?

Reply:

Madam President,

(a) The Government is most concerned about underpayment of wages in respect of foreign domestic helpers (FDHs). The monthly salaries of the FDHs working in Hong Kong should not be less than the minimum allowable wage stipulated by the Government. However, it is difficult for the Government to proactively conduct household inspections as the workplaces of FDHs are private residences and well over 200,000 households are involved. We usually act on complaint and FDHs who are underpaid by their employers are encouraged to file their complaints with the Labour Department (LD). On receipt of their complaints, LD will immediately investigate whether the employers concerned have violated the Employment Ordinance. If there is sufficient evidence, LD will prosecute the concerned employers.

In 2002, LD handled 94 underpayment claims lodged by FDHs.

(b) The Government is very concerned about overcharging of commission by employment agencies. Under the Employment Agency Regulations, the commission which may be charged by an employment agency for each person (including FDHs) using its service should not exceed a sum equal to ten per cent of the first month's wages received by such person after he/she has been placed in employment. Any employment agency contravening the Regulations shall be liable to a maximum fine of $50,000. In addition, the Commissioner for Labour will revoke its licence.

On receipt of complaints on overcharging, LD will immediately conduct investigation. If there is sufficient evidence, LD will prosecute the employment agencies concerned.

In 2002, LD received 98 complaints lodged against employment agencies about overcharging of commission. In ten out of the 78 cases investigated, LD has instituted prosecution action. For the remaining cases, no prosecution has been taken out because there is insufficient evidence or the complaints are not substantiated.

(c) The Administration will not tolerate such malpractices as underpayment of wages by employers of FDHs and overcharging of commission by employment agencies. To step up efforts against these illegal practices, the Administration has taken a number of measures: -

(i) An inter-departmental task group comprising LD, Immigration Department and the Police has been set up to combat illegal practices such as underpayment of wages by FDH employers and overcharging of commission by employment agencies.

(ii) In conjunction with the migrant workers groups and non-government organisations providing support services to FDHs, we have put in place an intelligence system to facilitate the reporting of underpayment of wages by employers of FDHs. LD will conduct investigation immediately upon receipt of complaints and institute prosecution against the employers concerned.

(iii) Starting from January this year, if the Labour Tribunal rules that the employer of a FDH must pay the wages in arrears in a civil claim, it will notify LD of the case immediately so that LD can take follow up action regarding any possible criminal offences.

(iv) Regular inspections of employment agencies are conducted by LD officers to ensure compliance with the legislation. If the operators of employment agencies are convicted of exploiting FDHs or if it is found that they are not fit and proper to operate such agencies, the Commissioner for Labour will revoke their licences or refuse to issue them licences. In 2002, a total of eight employment agencies had their licences revoked or were refused issue of licences.

(v) We have launched publicity through broadcasting announcements of public interest on radio and television and distributing pamphlets and posters to remind employers to pay wages to FDHs in accordance with the law. We will continue to educate the employers that underpayment of wages is a serious offence. The LD will also work with the press to remind employers of the provisions for the payment of wages and the relevant penalty under the Employment Ordinance.

(vi) We will, through such channels as inspections, letters and talks, remind operators of employment agencies not to overcharge FDHs or abet employers in underpaying their FDHs.

(vii) Lastly, we will, through various means, e.g. distributing employment guides prepared in the languages used by FDHs, conducting talks, providing telephone enquiry services and liaising with the relevant consulates and FDH organisations, explain to FDHs their statutory entitlements and the complaint channels.

End/ Wednesday, January 22, 2003

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