Keep Hong Kong MPF severance and long-service payments, pro-Beijing party for labour unions says
Federation of Trade Unions states concerns as government reportedly considering scrapping controversial part of city’s pension scheme
A pro-establishment political party representing labour unions has poured cold water on an alleged government proposal to scrap a controversial part of Hong Kong’s pension scheme by dropping severance requirements and replacing long-service payments.
The offsetting mechanism allows employers to settle severance and long- service payments using employees’ MPF savings.
Citing sources, Sing Tao Daily reported this week that the government believed long-service payments were similar to the MPF and was inclined to abolish them. The government was also said to be considering replacing severance pay with a type of unemployment insurance fund.
“This is something we cannot accept,” FTU president Lam Shuk-yee said on a local radio programme on Thursday, adding she had not previously heard about the possible changes after the meeting with Leung.
“Many employees feel [severance] is a form of compensation, not a type of unemployment insurance. [They think,] ‘I want to continue working, but you won’t let me.’ The nature isn’t the same.”