The Minimum Wage Ordinance and Its Implications

The Minimum Wage Ordinance (“MWO”), a very controversial piece of legislation was passed by the Legislative Council on 17th July 2010 and gazetted on 23rd July 2010. On 31st August 2010, members of the Provisional Minimum Wage Commission (“the Commission”), comprising representatives of the business sector, employees, scholars and public officers announced that its members had reached a consensus on the initial minimum wage level to be recommended to the Chief Executive of the HKSAR Government. The Chief Executive will then put forward the relevant figures to the Legislative Council for approval. The Commission did not disclose the figures for the minimum wage level but there is speculation that the recommended hourly wage rate is about HKD 29. For the purpose of determining the initial minimum wage level, the Commission had considered various factors which include the need to maintain an appropriate balance between the objectives of forestalling excessive low wages and minimizing the loss of low-paid jobs; and to sustain Hong Kong’s economic growth and competitiveness. http://www.onc.hk/pub/oncfile/publication/employment/1009_EN_Minimum_Wage_Ordinance_and_Its_Implications.pdf
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