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lo

1

Thirdly, we

we propose

3

allow the surviving family

members of a deceased employee to become entitled to a long

service payment if the deceased had completed the qualifying

period of service at the time of his death. The spouse of the deceased will have priority over his legitimate children

or parents. If there are no family members, the deceased's

be entitled to legal personal representative will payment. All this is set out in clause 6.

the

Under Clause 10

a gratuity or retirement benefit due to an employee who has

died in service may be reduced by the amount of the long

service payment. This ensures that employers will not be

liable to pay a double benefit.

Fourthly, we propose to

an prevent

unscrupulous

to

employer from raising an employee's wages just beyond the existing wage ceiling and then dismissing him in order avoid the long service payment. Clause 8 provides that

employee earning

more than the

where

non-manual a

wage

ceiling is dismissed, but had been earning below the ceiling within one year before his dismissal, he shall be entitled

to a long service payment for the entire period during which

his wages did not exceed the ceiling.

Fifthly, We propose to make it clear under flause

14 that an employer is not liable to pay a double benefit in

respect of a long service payment or severance payment if

the employee is re-employed immediately after retirement.

The period of re-employment will be treated separately.

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