FRIDAY, JULY 5, 1974.
PRIORITY FOR SEVERANCE PAYMENT PROPOSED
SEVERANCE PAYMENT WILL, UNDER TUO BILLS GAZETTED TODAY, ENJOY THE SAME PRIORITY ACCORDED TO ARREARS OF WAGES OR SALARY UP TO A MAXIMUM OF $6,000 FOR AN EMPLOYEE IN THE EVENT OF THE BANKRUPTCY OR WINDING-UP OF THE EMPLOYER.
THE PROPOSED LEGISLATIONS, THE BANKRUPTCY CAMENDMENT) BILL 1974 AND THE COMPANIES CAMENDMENT) (NO. 2) BILL 1974 UHICH WILL BE TABLED AT THE LEGISLATIVE COUNCIL SHORTLY, ARE DESIGNED TO OFFER BETTER PROTECTION TO MANUAL AND LOVER PAID SALARIED WORKERS.
IT HAS BEEN DECIDED THAT IF IN A PARTICULAR CASE AN EMPLOYER DOES NOT HAVE ENOUGH ASSETS TO DISCHARGE ALL HIS LIABILITIES, SEVERANCE PAY SHOULD BANK EQUALLY WITH WACES.
THE PRESENT POSITION REGARDING UACES IS THAT PRIORITY IS ACCORDED FOR UP TO FOUR HONTHS ARREARS OF VAGES, SUBJECT TO AN OVERALL MAX INUM OF $5,000. THE TWO NEW BILLS WILL, THEREFORE, AFFORD THE SAKE PRIORITY TREATMENT TO SEVERANCE PAYMENTS PAYABLE UNDER THE EMPLOYMENT ORDINANCE.
THESE BILLS, IN FACT, FOLLOW THE INTRODUCTION INTO THE LEGISLATIVE COUNCIL LAST WEDNESDAY (JULY 3) THE EMPLOYMENT CAMENDMENT) (NO. 2) BILL 1974 WHICH SEEKS TO PROVIDE FOR SEVERANCE PAYMENTS ON REDUNDANCY.
THE EMPLOYMENT BILL ALSO ENVISAGES THAT QUESTION AS TO THE RIGHT OF AN EMPLOYEE TO A SEVERANCE PAYMENT OR THE AMOUNT OF SUCH PAYMENT MAY BE MADE THE SUBJECT OF A CLAIM REFERRED TO THE LABOUR TRIBUNAL FOR DETERMINATION.
TO ENSURE THAT THE TRIBUNAL WILL HAVE JURISDICTION TO ENTERTAIN SUCH CLAIMS, UHICH MAY BE MADE BY AN EMPLOYEE OR AN EMPLOYER, THE SCHEDULE TO THE LABOUR TRIBUNAL ORDINANCE (CHAPTER 250 REQUIRES AMENDMENT.
IT IS PROPOSED TO EFFECT THIS AMENDMENT BY RESOLUTION OF THE LEGISLATIVE COUNCIL AFTER THE TWO NEW BILLS ARE ENACTED.
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