TNAG-0452-FCO40-517-Legislation-for-employment-of-workers-in-Hong-Kong-1974 — Page 96

(Cap. 32.)

Implied or constructive termination of contract.

1965 c. 62. s. 22.

11

(5) For the purposes of this section two com- panies shall be taken to be associated companies if one is a subsidiary of the other, or both are sub- sidiaries of a third company, and "associated com- pany" shall be construed accordingly.

(6) In this section "company" and "subsidiary" have the meanings respectively assigned thereto by sections 2 and 126 of the Companies Ordinance.

20M. (1) Where in accordance with any enact- ment or rule of law-

(a) any act on the part of the employer; or (b) any event affecting an employer (including, in the case of an individual, his death), operates so as to terminate a contract under which an employee is employed by him, that act or event shall for the purposes of this Part be treated as a termination of the contract by the employer, if apart from this subsection it would not constitute a termi- nation of the contract by him.

(2) Where subsection (1)

(1) applies, and

and the employee's contract of employment is not renewed, and he is not re-engaged under a new contract, as mentioned in subsection (2) of section 20E, he shall for the purposes of this Part be taken to be dismissed by reason of redundancy if the circumstances in which the contract is not renewed and he is not re-engaged as mentioned in subsection (2) of section 20E, are wholly or mainly attributable to one or other of the facts specified in paragraph (a) or (b) of subsection (2) of section 20C.

(3) For the purposes of subsection (2), paragraph (a) of subsection (2) of section 20C, in so far as it relates to the employer ceasing or intending to cease to carry on the business, shall be construed as if the reference to the employer included a reference to any person to whom, in consequence of the act or event in question, power to dispose of the business has passed.

(4) In this section any reference to subsection (2) of section 20E includes a reference to that section as applied by subsection (2) of section 20K.