Hong Kong passes long-awaited labour bill to scrap MPF offsetting mechanism, protecting workers’ pensions
- Move ends decade-long debate between bosses and unions, preventing employers from dipping into staff pensions to cover severance and long-service payments
- Three legislators from pro-business Liberal Party were among those who opposed bill
Hong Kong’s legislature has passed a long-awaited labour bill that will stop bosses from dipping into staff pensions to cover severance and long-service payments, ensuring the city’s workers have better retirement protection.
The Legislative Council on Thursday voted 72-5 to approve the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill that will abolish the so-called offsetting mechanism under the Mandatory Provident Fund (MPF), ending a decade-long debate between employers and workers’ unions over the issue.
“The passage of the bill … is a historic moment and an important milestone in improving the retirement protection of employees,” Secretary for Labour and Welfare Law Chi-kwong said on the sidelines of the Legco meeting.
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