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(ii) The estate of such an officer will be paid, ex-gratia,
a sum equivalent to the salary (and gratuity in the case of an officer on agreement) payable at the time of his death in respect of his outstanding earned vacation leave balance provided there are no part- icular reasons for withholding such a concession (for example, the officer may be under notice of termination).
Such payment will not attract Salaries Tax or Estate Duty in Hong Kong.
19. GRATUITY/RESETTLEMENT GRANT * (officers on agreement only)
(*For teachers)
(i)
On complétion of the tour of service required by this Memorandum or if the officer's services are terminated under Section 16 of this hemorandum for reasons other than misconduct, the officer will receive a gratuity/ resettlement grant for the period of service, includ- ing periods of earned vacation leave and the period of the direct journey to Hong Kong on first appointment. Such gratuity/resettlement grant will be payable in the form of a percentage of total basic salary of substantive office (plus expatriation pay where appropriate) drawm during the respective contrect period, at the rate of 25 per cent.
(ii) The gratuity/resettlement grant relating to the com- pleted period of resident service, and to the direct air journey to Hong Kong on first appointment, is normally paid not earlier than four clear working days before the officer's departure on vacation leave; that relating to the officer's vacation leave is paid on the expiry of the leave.
(iii) The gratuity/resettlement grant attracts salaries
tax and is assessed, for this purpose, as income of the tax year in which it is payable subject to the right of the officer to have such payment related back as income of the period of service to which it relates, not exceeding three years. In addition to any tax levied in Hong Kong, a gratuity/resettlement grant received in the United Kingdom may be subject to U.K. income tax.
20. FRESERVATION OF LOCAL GOVERNMEN SUPERANNUATION RIGHTS
The Superannuation (Local Government and Overseas Employment) Interchange Rules, 1958, provide for the preservation of the accrued rights of local government employees who take up certain non-pensionable employment abroad.
A person wishing to take advantage of these Rules must make application to his local authority within six months of entering the employment of the Hong Kong Government. If would be to his advantage to be retained on the estab- lishment of his local authority by the grant of leave without pay or otherwise - until the day prior to his depart- ure for Hong Kong.
21. PRESERVATION OF TEACHERS SUPERANNUATION RIGHTS
On discontinuance of contributory service in England or Wales, or in Scotland, to take up an appointment in Hong Kong, an officer's superannuation rights may be safe- guarded by application as soon as possible to the Ministry of Education or the Scottish Education Department as
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