TNAG-0452-FCO40-517-Legislation-for-employment-of-workers-in-Hong-Kong-1974 — Page 195

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CONFIDENTIAL

機密

For discussion

on 4th September 1973

ANNEX A TO YOU(74)39

XCC(73)73

Copy No.......

MEMORANDUM FOR EXECUTIVE COUNCIL

FROFOSED LEGISLATION ON SEVERANCE FAY ON REDUNDANCY

On 5th December 1972, Honourable Members considered memorandum XCC(72)89, a copy of which is annexed. Having considered this memorandum, Honourable Members advised and the Governor ordered:

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(a) that consultations with the employers' associations and the Labour Advisory Board should now take place on the proposals for the introduction of legislation to establish a scheme for severance pay on redundancy, bearing in mind the views expressed by the Council, and

(b)

that a further memorandum be submitted to the Council following the consultations referred to in (a) and before the views of the general public are sought.

Accordingly, the Commissioner of Labour put the

following modified proposals to the employers' associations and the Labour Advisory Board:

(a)

(b)

(c)

(d)

severance pay at the flat rate of one-third of a month's pay for every year of continous service should be payable by an employer on dismissal by reason of redundancy to all manual workers and to any other employees, earning not more than $1,500 a month, who have completed two years' service with the same employer, subject to a maximum of the equivalent of twelve months pay;

in calculating severance payments, any service prior to 5 years before the introduction of the legislation should be discounted;

an employee, whose conditions of service include a gratuity based on lenght of service, should not be entitled to receive both gratutiy and severance pay but only whichever of the two would be most favourable to him;

the provision should be incorporated in the Employment Ordinance (Chapter 57).

CONFIDENTIAL

機密

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