XN000022-1974-06-06 — Page 2

THURSDAY, JUNE 6, 1974

SEVERANCE PAYMENTS FOR WORKERS

BILL TO BE GAZETTED FOR PUBLIC COMMENT

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THE GOVERNMENT IS TO INTRODUCE A BILL TO OBLIGE EMPLOYERS TO MAKE SEVERANCE PAYMENTS TO WORKERS WHO LOSE THEIR JOBS THROUGH NO FAULT OF THEIR OWN.

THE BILL - THE EMPLOYMENT CAMENDMENT) (NO.2) BILL - WILL BE PUBLISHED IN TOMORROW'S (JUNE 7) GOVERNMENT GAZETTE FOR PUBLIC COMMENT BEFORE BEING SUBMITTED TO THE LEGISLATIVE COUNCIL.

IT COVERS ALL MANUAL WORKERS, AND NON-MANUAL WORKERS EARNING UP TO $2,000 A MONTH.

THE BILL GRANTS THE RIGHT OF SEVERANCE PAY TO EMPLOYEES WHO ARE FIT TO WORK, BUT ARE DISMISSED BECAUSE OF REDUNDANCY, OR LAID-OFF FOR MORE THAN THREE DAYS A WEEK.

IT APPLIES ONLY TO EMPLOYEES WHO HAVE BEEN WORKING FOR THE SAME EMPLOYER CONTINUOUSLY FOR AT LEAST 24 MONTHS IMMEDIATELY PRIOR TO THEIR DISMISSAL OR LAY-OFF.

MONTHLY-RATED EMPLOYEES WILL GET ONE-THIRD OF A MONTH'S PAY FOR EVERY YEAR OF CONTINUOUS SERVICE, AND TIME-RATED OR PIECE-RATED EMPLOYEES WILL GET 10 DAYS' WAGES FOR EVERY YEAR OF CONTINUOUS SERVICE.

SERVICE DURING THE FIVE YEARS BEFORE THE BILL COMES INTO FORCE WOULD BE TAKEN INTO ACCOUNT WHEN CALCULATING SEVERANCE PAY.

UNDER THE TERMS OF THE BILL, AN EMPLOYEE IS CONSIDERED REDUNDANT IF HE LOSES HIS JOB EITHER BECAUSE HIS EMPLOYER CLOSES OR PLANS TO CLOSE HIS BUSINESS, OR BECAUSE THERE IS A REDUCTION IN DEMAND FOR WORK OF A PARTICULAR KIND.

IN GENERAL THE EMPLOYEE IS COVERED BY THE BILL IF HE LOSES HIS EMPLOYMENT THROUGH NO FAULT OF HIS OWN. IF HE LEAVES FOR OTHER REASONS - SUCH AS MISCONDUCT, ILL-HEALTH, OR AFTER A VOLUNTARY RESIGNATION HE IS NOT ENTITLED TO SEVERANCE PAY.

FURTHERMORE, AN EMPLOYEE WHO IS ENTITLED UNDER HIS TERMS OF SERVICE TO A GRATUITY BASED ON LENGTH OF SERVICE CANNOT RECEIVE BOTH THE GRATUITY AND SEVERANCE PAY, BUT WILL HAVE TO CHOOSE WHICHEVER OF THE TWO IS MORE BENEFICIAL TO HIM.

IF THE SEVERANCE PAYMENT IS NOT MADE PROMPTLY BY AGREEMENT, THE EMPLOYEE ELIGIBLE FOR SEVERANCE PAY WILL HAVE TO MAKE HIS CLAIM IN WRITING WITHIN A MONTH FROM THE DATE HIS EMPLOYMENT ENDS. THIS ONE MONTH DEADLINE CAN BE EXTENDED AT THE DISCRETION OF THE COMMISSIONER OF LABOUR.

THE EMPLOYER MUST MAKE THE PAYMENT WITHIN TWO MONTHS OF THE CLAIM BEING SUBMITTED, AND ALSO PROVIDE A WRITTEN STATEMENT SHOWING HOW THE AMOUNT OF SEVERANCE PAY HAD BEEN CALCULATED.

/DISPUTES