Although the Minimum Wage Ordinance has been in effect since May 1, many human resources (HR) practitioners continue to wrestle with grey areas. On the surface, the ordinance concerns apparently simple words, such as the provision for a pay of HK$28 per hour. However, there are some challenging areas for HR practitioners. They include the definitions of 'hours worked' and non-working hours which cover lunch, coffee and toilet breaks.
'Some employees arrive at the office before 9am and stay after the regular office hours,' says Steven Chung of Goldenway Investments Holdings' human resources, chief executive office. 'Other factors that affect the calculation of 'hours worked' include statutory benefits such as public holidays and leaves; the arrangement for work outside office hours such as overtime, on call, and standby; and work rendered outside the office, such as business travel,' Chung adds.
Katy Fok, director of human resources at upscale hotel The Mira in Tsim Sha Tsui, thinks record-keeping is the main challenge. 'The regular 'clock-in clock-out' system at the entrance is mainly for security purposes. To have a more accurate record of 'hours worked', we now ask staff to sign in and out at various work stations. This system is based on mutual trust,' she says.
The law has put hotels in a dilemma over the recruitment of international trainees. It is not reasonable to pay the trainees a regular salary. Overseas trainees will not be able to obtain a visa if they are paid a salary. 'We just have to put the programme on hold,' Fok says.
The ordinance also does not have any specific provision for overseas students who want to gain practical experience by working with companies in Hong Kong.
In the hotel-specific salary calculation, tips on bills are counted as wages. This has become a headache as hotels usually pay the tips in the middle of the following month but the law only gives employers a grace period of seven days after the end of the last month to pay the employees' full wages. Sometimes these tips, many paid with credit cards, make the difference in whether the salary of an employee reaches the minimum wage.
Chung and Fok were among the HR executives who attended the 'Minimum Wage Implications and Tips for HR Professionals' seminar organised by Kornerstone, Classified Post and Michael Page. Winnie Chiu, a partner at ONC Lawyers, was the speaker.