TNAG-0452-FCO40-517-Legislation-for-employment-of-workers-in-Hong-Kong-1974 — Page 93

Employee's option where

gratuity payable.

Change of ownership of business.

1965 c. 62. s. 13.

8

section 20D, that subsection shall not apply to that termination of the contract.

20J. Where an employee is entitled-

(a)

by virtue of this Part, to a severance pay- ment; and

(b) by virtue of the terms of his contract of employment, to a gratuity based upon length of service,

the employee shall not be entitled to both such severance payment and gratuity but shall elect, by notice in writing given to the employer within twenty days of the relevant date, to take either the severance payment or the gratuity:

Provided that if the employee makes no such election, or dies without having made his election. prior to the termination of his contract of employ- ment, it shall be conclusively presumed that the employee has elected to take whichever shall be the greater of the severance payment or the gratuity.

20K. (1) This section shall have effect where- (a) a change occurs (whether by virtue of a sale or other disposition or by operation of law) in the ownership of a business for the pur- poses of which a person is employed, or of a part of such a business; and

(b) in connexion with that change the person by whom the employee is employed imme- diately before the change occurs (in this section referred to as "the previous owner") terminates the employee's contract in accor- dance with section 5 or 6.

(2) If, by agreement with the employee, the person who immediately after the change occurs is the owner of the business or of the part of the business in question, as the case may be (in this section referred to as "the new owner") renews the employee's contract of employment (with the substi- tution of the new owner for the previous owner) or re-engages him under a new contract of employment, subsection (2) of section 20E shall have effect as if the renewal or re-engagement had been a renewal or