XN000022-1977-04-20 — Page 25

WEDNESDAY, APRIL 20, 1977

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INCREASED SEVERANCE PAY PROPOSED

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EMPLOYEES WILL BE ELIGIBLE FOR INCREASED SEVERANCE PAY IN THE EVENT OF REDUNDANCY IF A BILL INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY BECOMES LAW.

MOVING THE SECOND READING OF THE EMPLOYMENT (AMENDMENT) (NO. 2) BILL 1977, THE COMMISSIONER FOR LABOUR, MR. IAN PRICE SAID THE BILL SEEKS TO INCREASE THE AMOUNT OF AN EMPLOYEE'S SEVERANCE PAY FOR EACH YEAR OF SERVICE FROM ONE-THIRD OF A MONTH'S PAY TO HALF A MONTH'S PAY FOR MONTHLY-RATED EMPLOYEES, AND FROM 10 DAYS' WAGES TO 13 DAYS' WAGES FOR TIME-RATED OR PIECE-RATED EMPLOYEES.

IT ALSO PROPOSES TO EXTEND THE PERIOD OF CONTINUOUS SERVICE TO BE TAKEN INTO ACCOUNT IN CALCULATING SEVERANCE PAY, FROM FIVE TO EIGHT YEARS.

+THESE AMENDMENTS, IF APPROVED BY COUNCIL,+ SAID MR. PRICE, +WILL PROVIDE MORE EQUITABLE AND MEANINGFUL SEVERANCE PAYMENTS FOR REDUNDANT EMPLOYEES AND IN PARTICULAR MORE GENEROUS TREATMENT FOR THOSE WITH LONGER SERVICE.

+UNDER THE EXISTING SCHEME+ HE WENT ON, THOSE EMPLOYEES WITH MORE THAN EIGHT YEARS OF CONTINUOUS EMPLOYMENT RECEIVE AN AMOUNT OF SEVERANCE PAY IN COMMENSURATE WITH THEIR LENGTH OF SERVICE.+

CONCLUDING, MR. PRICE SAID THAT ALTHOUGH SOME RESERVATIONS HAD BEEN EXPRESSED REGARDING THE PROPOSAL +NO ONE HAS ADVOCATED THAT EMPLOYEES SHOULD NOT HAVE THE RIGHT TO EXPECT A REASONABLE SUM OF SEVERANCE PAY AFTER YEARS OF LOYAL SERVICE AND THIS WILL BE PROVIDED BY THE AMENDMENT.+

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THE LAW AT PRESENT PROVIDES FOR EMPLOYEES TO BE GIVEN SEVERANCE PAY AT A FLAT RATE OF ONE-THIRD OF A MONTH'S PAY FOR MONTHLY-RATED WORKERS, OR 10 DAYS' WAGES FOR TIME AND PIECE RATED WORKERS FOR EVERY YEAR OF CONTINUOUS SERVICE, SUBJECT TO A QUALIFYING PERIOD OF TWO YEARS' SERVICE. ANY SERVICE IN EXCESS OF FIVE YEARS PRIOR TO THE ENACTMENT OF THE LEGISLATION, I.E. AUGUST 23, 1974, DOES NOT COUNT FOR THE CALCULATION OF PAYMENTS.

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