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CAP. 57
Employment
[1988 Ed.
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(3) This section shall have effect (subject to the necessary modifications) in relation to a case where-
(a) the person by whom a business, or part of a business, is owned immediately before a change is one of the persons by whom (whether as partners, trustees or otherwise) it is owned immediately after the change; or
(b) the persons by whom a business, or part of a business, is owned immediately before a change (whether as partners, trustees or otherwise) include the person or one or more of the persons by whom it is owned immediately after the change,
as this section has effect where the previous owner and the new owner are wholly different persons.
(4) Nothing in this section shall be construed as requiring any variation of a contract of employment by agreement between the parties to be treated as constituting a termination of the contract.
Associated companies
31ZA. (1) Where the employer is a company, any reference in this Part to re-engagement by the employer shall be construed as a reference to re-engagement by that company or by any associated company.
(2) Subsection (1) shall not affect the operation of section 31Z in a case where the previous owner and the new owner (as defined by that section) are associated companies; and where that section applies, subsection (1) shall not apply.
(3) Where an employee of a company is taken into the employment of another company which, at the time when he is taken into its employment, is an associated company of the first-mentioned company, his period of employment at that time shall count as a period of employment with the associated company, and the change of employer shall not break the continuity of the period of employment.
(4) For the purposes of this section, 2 companies shall be taken to be associated companies if one is a subsidiary of the other, or both are subsidiaries of a third company, and "associated company" shall be construed accordingly.
(5) In this section "company" and "subsidiary" have the meanings respectively assigned thereto by section 2 of the Companies Ordinance (Cap. 32).
Implied or constructive termination of contract
31ZB. Where in accordance with any enactment 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),
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Page 46
44
CAP. 57
Employment
[1988 Ed.
!
(3) This section shall have effect (subject to the necessary modifications) in relation to a case where-
(a) the person by whom a business, or part of a business, is owned immediately before a change is one of the persons by whom (whether as partners, trustees or otherwise) it is owned immediately after the change; or
(b) the persons by whom a business, or part of a business, is owned immediately before a change (whether as partners, trustees or other- wise) include the person or one or more of the persons by whom it is owned immediately after the change,
as this section has effect where the previous owner and the new owner are wholly different persons.
(4) Nothing in this section shall be construed as requiring any variation of a contract of employment by agreement between the parties to be treated as constituting a termination of the contract.
Associated companies
31ZA. (1) Where the employer is a company, any reference in this Part to re-engagement by the employer shall be construed as a reference to re- engagement by that company or by any associated company.
(2) Subsection (1) shall not affect the operation of section 31Z in a case where the previous owner and the new owner (as defined by that section) are associated companies; and where that section applies, subsection (1) shall not apply.
(3) Where an employce of a company is taken into the employment of another company which, at the time when he is taken into its employment, is an associated company of the first-mentioned company, his period of employment at that time shall count as a period of employment with the associated company, and the change of employer shall not break the continuity of the period of employment.
(4) For the purposes of this section, 2 companies shall be taken to be associated companies if one is a subsidiary of the other, or both are subsidiaries of a third company, and "associated company" shall be construed accordingly.
(5) In this section "company" and "subsidiary" have the meanings respectively assigned thereto by section 2 of the Companies Ordinance (Cap. 32).
Implied or constructive termination of contract
31ZB. Where in accordance with any enactment 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 in-
dividual, his death),
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