Hong Kong Ordinances

EMPLOYMENT ORDINANCE - SECT 11A

Interpretation

(Past version on 30/06/1997).

PART IIA

END OF YEAR PAYMENT

(1) In this Part, unless the context otherwise requires— (Amended 7 of 2007
s. 5)

"end of year payment" (年終酬金) means any annual payment (whether
described
as "thirteenth month payment", "fourteenth month payment", "double pay",

"end of year bonus" or otherwise) or annual bonus of a contractual nature, but
does not include any annual payment or any annual bonus, or any proportion
thereof, which is of a gratuitous nature or which is payable only at the
discretion of the employer; (Amended 74 of 1997 s. 6)

"lunar year" (農歷年) means a Chinese lunar year ending immediately before
a Lunar New Year's Day;

"payment period" (酬金期) has the meaning assigned to it by section 11C;

"proportion of the end of year payment" (部分年終酬金) means the
proportion of  the end of year payment calculated in accordance with
section 11F. (Amended 7 of 2007 s. 5)

(2) For the purposes of subsections (3), (4) and (5), "wages" (工資)
includes any sum paid by an employer in respect of—

   (a)  a day of maternity leave, a rest day, a sickness day, a holiday or a
        day of annual leave taken by the employee;

   (b)  a day of leave taken by the employee with the agreement of his
        employer;

   (c)  a normal working day on which the employee is not provided with work;

   (d)  a day of absence from work of the employee due to temporary incapacity
        for which compensation is payable under section 10 of the
        Employees' Compensation Ordinance ( Cap 282). (Added 7 of 2007 s. 5)

(3) In this Part, a reference to the full month's wages of an employee is to
be construed as a reference to the monthly average of the wages earned by the
employee during—

   (a)  the period of 12 months immediately before the day on which the
        end of year payment becomes due to the employee under section 11E(1)
        or

(2) or the day on which the proportion thereof becomes due to the employee
under section 11F(3) or (4) (as appropriate) ("due day"); or

   (b)  if the employee has been employed by the employer concerned for a
        period shorter than 12 months immediately before the due day, the
        shorter period. (Added 7 of 2007 s. 5)

(4) In calculating the monthly average of the wages earned by an employee
during the period of 12 months or the shorter period—

   (a)  any period therein for which the employee was not paid his wages or
        full wages by reason of—

        (i)    any maternity leave, rest day, sickness day, holiday or annual 
               leave taken by the employee;

        (ii)   any leave taken by the employee with the agreement of his
               employer;

        (iii)  his not being provided by his employer with work on any normal
               working day; or

        (iv)   his absence from work due to temporary incapacity for which
               compensation is payable under section 10 of the
               Employees' Compensation  Ordinance ( Cap 282); and

   (b)  any wages paid to him for the period referred to in paragraph

   (a)  , are to be disregarded. (Added 7 of 2007 s. 5)

(5) For the avoidance of doubt, if the amount of the wages paid to an employee
in respect of a day specified in subsection (2) is only a fraction of the
amount earned by the employee on a normal working day, the wages and the day
are to be disregarded in accordance with subsection (4).
(Added 7 of 2007 s. 5)

(6) Despite subsection (3), if for any reason it is impracticable to calculate
the monthly average of the wages earned by an employee in the manner provided
in that subsection, the amount may be calculated by reference to the wages
earned by a person who was employed at the same work by the same employer
during the period of 12 months immediately before the due day, or, if there is
no such person, by a person who was employed in the same trade or occupation
and at the same work in the same district during the period of 12 months
immediately before the due day. (Added 7 of 2007 s. 5) (Part IIA added 48 of
1984 s. 6)

"end of year payment" (年終酬金)

"lunar year" (農歷年)

"payment period" (酬金期)

"proportion of the end of year payment" (部分年終酬金)

"wages" (工資)