TNAG-0452-FCO40-517-Legislation-for-employment-of-workers-in-Hong-Kong-1974 — Page 232

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criteria of redundancy exist for the purposes of entitlement to a severance payment, regard may be had not only to the employer company but also to the business of any "associated companies" as if they together constituted one business.

Section 20M provides that, where by operation of law there is an implied or constructive termination of a contract of employment arising from any act on the part of or any event affecting the employer, that termination shall

In such a case, be treated as termination by the employer.

if the employee's contract is not renewed and he is not re-engaged under a new contract, he will be taken to be

dismissed by reason of redundancy if the criteria for

redundancy specified in section 200 are satisfied.

Section 20N provides that, in the event of the

death of an employer or employee, Parts I and II respectively of the new Third Schedule (added by clause 4 of the Bill)

will apply.

The time within which an employee must claim a

severance payment is laid down in section 200 and section

20P deals with the time for and manner of payment of a

severance payment.

An employer who makes a severance payment, otherwise

than in accordance with a decision of the Labour Tribunal, must give the employee a written statement showing how it has been calculated (section 200). Failure to comply with

this requirement is an offence.

Section 20R provides that an employee shall be

presumed, in the absence of evidence to the contrary, to

have been dismissed by reason of redundancy.