XN000022-1984-06-27 — Page 23

WEDNESDAY, JUNE 27, 1984

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BILL SEEKS TO PROVIDE CLARIFICATIONS

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THE PROPOSAL TO EXTEND STATUTORY PROTECTION TO EMPLOYEES IN RESPECT OF CONTRACTUAL ANNUAL BONUSES SEEKS TO CLARIFY EXISTING CONTRACTUAL OBLIGATIONS, AND, IN GENERAL, DOES NOT SEEK TO CREATE NEW OBLIGATIONS, THE ACTING COMMISSIONER FOR LABOUR, DR THE HON JAMES HAYES SAID TODAY (WEDNESDAY).

SPEAKING AT THE SECOND READING OF THE EMPLOYMENT (AMENDMENT) (NO. 3) BILL IN THE LEGISLATIVE COUNCIL, DR HAYES SAID THE PROPOSAL SHOULD NOT IMPOSE A SIGNIFICANT ADDITIONAL FINANCIAL LIABILITY ON EMPLOYERS.

HE SAID THE BILL INCLUDED A NUMBER OF MISCELLANEOUS AND UNRELATED AMENDMENTS, APART FROM THE NEW PART IIA WHICH DEALT WITH END OF YEAR PAYMENTS.

DR HAYES SAID THESE AMENDMENTS SOUGHT TO CLARIFY SOME PROVISIONS OF THE EMPLOYMENT ORDINANCE WHICH HAD BEEN FOUND TO BE EITHER AMBIGUOUS, OUTDATED, DIFFICULT TO ENFORCE OR IN OTHER WAYS INADEQUATE.

+THEY DO NOT ALTER THE SUBSTANCE OR SPIRIT OF THE EXISTING PROVISIONS OF THE ORDINANCE, + HE SAID.

ON END OF YEAR PAYMENTS, DR HAYES SAID THE NEW PART AIMED TO CLARIFY THE OBLIGATIONS OF AN EMPLOYER WHERE THERE WAS AN EXPRESS OR IMPLIED AGREEMENT FOR SUCH A PAYMENT IN THE CONTRACT OF EMPLOYMENT, WHETHER VERBAL OR WRITTEN.

+ IT DOES NOT, HOWEVER, COVER THOSE END OF YEAR PAYMENTS OR ANNUAL BONUSES WHICH ARE OF A GRATUITOUS NATURE OR WHICH ARE PAYABLE AT THE DISCRETION OF THE EMPLOYER, OR OTHER INCENTIVE PAYMENTS.+

THE NEW PART 11A ALSO PROVIDED FOR AN EMPLOYEE'S ENTITLEMENT TO A PROPORTION OF END OF YEAR PAYMENT ON TERMINATION IF HE WAS ENTITLED TO SUCH UNDER THE CONDITIONS OF HIS EMPLOYMENT, PROVIDED HE HAD WORKED FOR THE SAME EMPLOYER FOR A CONTINUOUS PERIOD OF NOT LESS THAN 26 WEEKS IN THE PAYMENT PERIOD AND HIS CONTRACT OF EMPLOYMENT WAS TERMINATED THROUGH NO FAULT OF HIS OWN.

HOWEVER, AN EMPLOYEE WHO RESIGNED OF HIS OWN ACCORD OR HAD BEEN DISMISSED FOR CAUSE BY HIS EMPLOYER DURING THE PAYMENT PERIOD WOULD NOT RECEIVE THIS PROTECTION.

THE PROPOSED LEGISLATION ALSO SPECIFIED A TIME LIMIT FOR THE PAYMENT OF THE END OF YEAR PAYMENT, DR HAYES SAID.

+FOR SERVING EMPLOYEES, THIS LIMIT IS NOT LATER THAN SEVEN DAYS AFTER THE END OF YEAR PAYMENT IS DUE OR, IN THE CASE OF AN END OF YEAR PAYMENT TO BE CALCULATED BY REFERENCE TO ANY PROF ITS OF THE EMPLOYER, NOT LATER THAN SEVEN DAYS AFTER SUCH PROFITS ARE ASCERTAINED.+

WHEN AN