REDUNDANCY PAYMENTS FUND (AMENDMENT) BILL

Order for Second Reading read.

3.55 p.m.

The Minister for Labour (Mr Ong Pang Boon): Mr Govindasamy, Sir, I beg to move, "That the Bill be now read a Second time."

Members may recollect that my predecessor, in moving the Redundancy Payments Fund Bill in this House on 25th January, 1968, cited the following reasons in support of the Bill. I quote from Hansard, Vol. 26, No. 16, col. 1111:

`On becoming redundant, most of the employees will get a sizable sum of money as redundancy payments. Many of them are unaccustomed to handling substantial sums of money at any one time the basic aim of this legislation is to ensure that the money they receive is not used unwisely and in-judiciously, which will make them destitute in a short period and bring them and their families great distress.'

Over the past three years, nearly 18,000 base workers have been retrenched from the British bases. As a result of the careful husbanding of their redundancy payments, they have been protected from acute financial distress or personal hardship. Further, with the British withdrawal nearing completion, the nation as a whole has not experienced any serious social upheaval or economic dislocation which would have occurred if Government had not acted to safeguard the interest of the workers and their families. Yet the Act was criticised in some quarters and accusations were hurled to the effect that the redundancy payments belonging to the workers were taken away and used as revenue. Time has shown that Government action in enacting the law to safeguard redundancy payments has been correct and the sorry spectacle of workers being reduced to poverty after frittering away their hard-earned money has been avoided.

Whilst previously the Redundancy Payments Fund Act was applied only to redundant workers, it is the intention now to expand the coverage of the Act. The proposed amendment will enable all payments made to the employee on the termination of his services by reason of his employer ceasing to carry on business for whatever reason to be paid to the Redundancy Payments Fund. This would enable any payments made in respect of retirement benefits and other gratuities payable under the terms of a collective agreement or award on the winding up of the company, according to the Employment (Amendment) Bill which I introduced earlier, to be paid into the Redundancy Payments Fund instead of direct to the employee. In this way, the Fund can be used to conserve in the employee's best interest the money due to him on the termination of his services on account of his employer ceasing to carry on business for whatever reason and thus prevent such money from being unwisely dissipated.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Ong Pang Boon].

Bill considered in Committee.

[Mr N. Govindasamy in the Chair]

4.00 p.m.

Clause 1 ordered to stand part of the Bill.

Clause 2 -

Mr Ong Pang Boon: Mr Govindasamy, Sir, I seek your consent and the general assent of the Members present to dispense with notice in respect of a consequential amendment which I propose to move to this clause.

I have with me copies of the proposed amendment for distribution.

Typed copies of the amendment distributed to Members.

The Chairman: I give my consent. Is it the pleasure of Members that the motion be moved?

Hon. Members indicated assent.

Mr Ong Pang Boon: Sir, I beg to move,

In page 1, line 11, after "reason", to insert "or transferring the whole or part of his undertaking or property, as the case may be.".

Sir, this amendment is necessary in view of the amendment moved by the Member for Moulmein to the Employment (Amendment) Bill earlier this evening and passed by the House. It will provide for the payment into the Redundancy Payments Fund the retirement or other benefits provided under a collective agreement in instances where an employer transfers the whole or part of his undertaking or property.

Amendment agreed to.

Clause 2, as amended, ordered to stand part of the Bill.

Bill reported with an amendment; read a Third time and passed.