Hong Kong Ordinances

EMPLOYMENT ORDINANCE - SECT 31C

General exclusions from right to severance payment by reason of dismissal

(Past version on 30/06/1997).

(1) An employee shall not be entitled to a severance payment by reason of
dismissal where his employer, being so entitled by reason of the employee's
conduct, terminates his contract of employment without notice or payment in
lieu in accordance with section 9. (Amended 51 of 2000 s. 3)

(2) An employee shall not be entitled to a severance payment by reason of
dismissal if, not less than 7 days before the relevant date, the employer has
offered to renew his contract of employment, or to re-engage him under a new
contract, so that-

   (a)  the provisions of the contract as renewed, or of the new contract, as
        the case may be, as to the capacity and place in which he would be
        employed, and as to the other terms and conditions of his employment,
        would not differ from the corresponding provisions of the contract as
        in force immediately before his dismissal; and

   (b)  the renewal or re-engagement would take effect on or before the
        relevant date, and the employee has unreasonably refused that offer.

(3) An employee shall not be entitled to a severance payment by reason of
dismissal if, not less than 7 days before the relevant date, the employer has
made to him an offer in writing to renew his contract of  employment, or to
re-engage him under a new contract, so that in accordance with the particulars
specified in the offer the provisions of the contract as renewed, or of the
new contract, as the case may be, as to the capacity and place in which he
would be employed, and as to the other terms and conditions of his employment,
would differ (wholly or in part) from the corresponding provisions of the
contract as in force immediately before his dismissal, but-

   (a)  the offer constitutes an offer of suitable employment in relation to
        the employee;

   (b)  the offer constitutes an offer of employment no less favourable to the
        employee than hitherto; and

   (c)  the renewal or re-engagement would take effect on or before the
        relevant date, and the employee has unreasonably refused that offer.

(4) Where the relevant date falls on a rest day or holiday, the references in
subsection (2)(b) and subsection (3)(c) to the relevant date shall be
construed as references to the next day after that rest day or holiday.
(Amended 75 of 1997 s. 2)

(5) An employee shall not be entitled to a severance payment by reason of
dismissal where, having been given notice of the termination of his
contract of employment by his employer in accordance with section 6, he leaves
the service of his employer before the expiration of that notice unless he so
leaves-

   (a)  with the prior consent of the employer; or

   (b)  after having made a payment in lieu to the employer in accordance with
        section 7. (Replaced 75 of 1997 s. 2) [cf. 1965 c. 62 s. 2 U.K.]