XN000022-1992-05-13 — Page 25

WEDNESDAY, MAY 13, 1992

23

IMPROVEMENTS TO SEVERANCE AND LONG SERVICE

PAYMENT PROPOSED

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A BILL THAT SEEKS TO REMOVE CERTAIN AMBIGUITIES AND INADEQUACIES IN THE PROVISIONS RELATING TO SEVERANCE AND LONG SERVICE PAYMENT UNDER THE EMPLOYMENT ORDINANCE WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE EMPLOYMENT (AMENDMENT) (NO.

4) BILL 1992, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, SAID AN EMPLOYEE'S ENTITLEMENT TO SEVERANCE AND LONG SERVICE PAYMENT IS SUBJECT TO A MAXIMUM EQUIVALENT TO THE TOTAL AMOUNT OF HIS LAST 12 MONTHS' WAGES.

AT PRESENT, AN EMPLOYEE ON SICK LEAVE, MATERNITY LEAVE OR LEAVE ARISING FROM WORK INJURIES DURING HIS LAST 12 MONTHS OF EMPLOYMENT IS DEEMED TO HAVE BEEN PAID FULL WAGES.

то IMPROVE THE PROTECTION ACCORDED TO AN EMPLOYEE IN THE CALCULATION OF SUCH PAYMENT, MR CHAN SAID THE BILL PROPOSED TO EXPAND THIS DEEMING PROVISION TO COVER SITUATIONS WHERE AN EMPLOYEE HAD BEEN PUT ON SHORT-TIME WORK OR HAD TAKEN NO-PAY SICK LEAVE OR NO-PAY MATERNITY LEAVE.

"IT ALSO PROPOSES THAT THE PROVISION, WHICH AT PRESENT APPLIES ONLY TO EMPLOYEES BEING DISMISSED OR LAID OFF, SHOULD BE EXTENDED TO COVER EMPLOYEES WHO RESIGN BECAUSE OF ILL-HEALTH OR OLD AGE AND DEPENDANTS OF AN EMPLOYEE WHO DIES IN SERVICE,' HE ADDED.

·

UNDER THE PROPOSED BILL, THE "CROSS-HARBOUR" PROVISION WHICH AT PRESENT ENTITLES AN EMPLOYEE TO CLAIM SEVERANCE PAYMENT IF HIS EMPLOYMENT IS TERMINATED AS A RESULT OF HIS EMPLOYER MOVING THE WORKPLACE ACROSS THE HARBOUR, WOULD BE REMOVED.

IN THE LIGHT OF THE PRESENT TRANSPORT INFRASTRUCTURE IN HONG KONG, MR CHAN FELT THAT A GEOGRAPHICAL DEMARCATION BASED SOLELY ON CROSSING THE HARBOUR HAD BECOME QUITE ANACHRONISTIC.

HOWEVER, HE SAID, IF A CHANGE OF WORKPLACE CAUSED HARDSHIP ΤΟ AN EMPLOYEE ΤΟ AN EXTENT SUFFICIENTLY SERIOUS TO ESTABLISH A CONSTRUCTIVE DISMISSAL UNDER COMMON LAW, THE EMPLOYEE MIGHT STILL CLAIM SEVERANCE PAYMENT.

THE BILL FURTHER PROPOSES THAT AN EMPLOYEE SHOULD NOT BE DEPRIVED OF HIS ENTITLEMENT TO SEVERANCE OR LONG SERVICE PAYMENT MERELY BECAUSE HE HAS GIVEN NOTICE OF RESIGNATION.

THE EXISTING PROVISIONS STIPULATE THAT AN EMPLOYEE SHALL BE TAKEN TO BE DISMISSED, AND MAY CLAIM SEVERANCE OR LONG SERVICE PAYMENT IF HE TERMINATES THE CONTRACT WITHOUT NOTICE OR PAYMENT IN LIEU BECAUSE OF CERTAIN CONDUCT ON THE PART OF HIS EMPLOYER, THAT IS, ILL TREATMENT.

/"HOWEVER, IF