TNAG-0452-FCO40-517-Legislation-for-employment-of-workers-in-Hong-Kong-1974 — Page 231

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Section 20G provides that certain specified

classes of employees are not entitled to severance

payments.

Calculation of the amount of a severance payment

is provided for by section 20H. It is a proportion of the employee's wages multiplied by the length of his service. A maximum payment is prescribed and employment more than 5 years prior to the day appointed by the Governor under section 20C(1) is not to be included for the purposes of

such calculation.

An employee who, being under notice of dismissal,

has his contract terminated forthwith for taking part

in a strike is not solely on that account deprived of

his right to a severance payment.

Employees who are entitled to both a severance

payment under Part IIIA and a gratuity based upon length of service must elect to take either the severance payment

or the gratuity (section 20J).

Section 20K provides that where a change occurs in the ownership of a business and in connection with that change, but prior thereto, an employee is dismissed, the employee shall not be entitled to a severance payment

if the new owner, with the agreement of the employee,

renews his contract of employment or re-engages him on

the same or similar terms to his existing contract or if

the new owner makes an offer of employment which is unreasonably refused by the employee. The operation of section 20K is not affected by the fact that the previous

owner of the business and the new owner are associated

Furthermore, in determining whether the

companies.