TNAG-0452-FCO40-517-Legislation-for-employment-of-workers-in-Hong-Kong-1974 — Page 193

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B

For discussion

on 4th June 1974

XCC(74)39

Copy No. 3..

MEMORANDUM FOR EXECUTIVE COUNCIL

EMPLOYMENT (AMENDMENT) (NO 2) BILL 1974

SEVERANCE PAY ON REDUNDANCY

REGISTRY No. 4!

- 3 JUN 1974

HRK 5/19

On 4th September 1973, Honourable Members considered memorandum XCC(73)73, a copy of which is at Annex A. Having considered this memorandum, Honourable Members advised and the Governor ordered:

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(a)

(b)

(c)

(d)

(e)

that a bill be prepared as soon as possible to provide for a severance pay scheme along the lines set out in paragraph 2 of the memorandum;

that the scheme be applied 'across the board' to all employees who benefit from the provisions of the Employment Ordinance, in accordance with the advice of the Labour Advisory Board and the Employers' Associations;

that the rate of severance pay for daily or piece-rated workers be ten days pay for every year of continuous employment, subject to the other conditions listed at paragraph 2 of the memorandum;

that during the drafting of the legislation a form of marginal relief or averaging be considered to meet the case of an employee who, by reason of a wage increase, might have ceased to be eligible for severance pay shortly before he became redundant;

that the bill be published in the Gazette, for the purpose of public consultation, two months in advance of its introduction into the Legislative Council.

Such a bill has now been prepared and is at Annex B for the consideration of Honourable Members. Though the bill does no more than give effect to the proposals set out in paragraph 2 of the annexed memorandum, it has turned out to be a longer and more complex piece of legislation than originally envisaged. For this reason it is thought that Honourable Members would wish to have the opportunity to examine the bill before its publication in accordance with (e) above.

C.S. 166

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