1964_EMPLOYMENT_ORDINANCE — Page 35

34

CAP. 57]

Employment

[1988 Ed.

(a) by virtue of this Part, to a severance payment; and (b) by virtue of-

41/90510

(i) the terms of his contract of employment, to a gratuity based upon length of service; or

(ii) a provident fund scheme or arrangement, to a payment thereunder,

refinement scheme

the severance payment shall be reduced by the amount of the gratuity or provident fund payment (as the case may be) paid to that employee. refinement scheme

retirement scheme (2) For the purposes of subsection (1), a provident fund payment shall not include that part (if any) of the payment which represents a return of an employee's own contributions, including any sum payable in respect of interest thereon.

Change of ownership of business

31J. (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 purposes of which a person is employed, or of a part of such a business; and

(b) in connection with that change the person by whom the employee is employed immediately before the change occurs (in this section referred to as "the previous owner") terminates the employee's con- tract in accordance with section 6 or 7.

(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 substitution of the new owner for the previous owner) or re-engages him under a new contract of employment, section 31D(2) shall have effect as if the renewal or re-engagement had been a renewal or re-engagement by the previous owner (without any substitution of the new owner for the previous owner).

(3) If the new owner offers to renew the employee's contract of employ- ment (with the substitution of the new owner for the previous owner) or to re-engage him under a new contract of employment, but the employee refuses the offer, section 31C (2) or (3) (as the case may be) shall have effect, subject to subsection (4), in relation to that offer and refusal as it would have had effect in relation to the like offer made by the previous owner and a refusal of that offer by the employee.

(4) For the purposes of the operation, in accordance with subsection (3), of section 31C (2) or (3) in relation to an offer made by the new owner-

(a) the offer shall not be treated as one whereby the provisions of the contract as renewed, or of the new contract, as the case may be, would differ from the corresponding provisions of the contract as in force. immediately before the dismissal by reason only that the new owner would be substituted for the previous owner as the employer; and

Page 35Page 36