Hong Kong Ordinances

EMPLOYMENT ORDINANCE - SECT 31G

Amount of severance payment

(1) Subject to this Part, the amount of a severance payment to which an
employee is entitled in any case shall be calculated by allowing-

   (a)  in the case of a monthly rated employee, two-thirds of this last full
        month's wages, or two-thirds of $22500, whichever is less; and

   (b)  in any other case, 18 days' wages based on any 18 days chosen by the
        employee and occurring during his last 30 normal working days, or
        two-thirds of $22500, whichever is less, (Amended L.N. 264 of 1995)
        for every year (and pro rata as respects an incomplete year) of
        employment under a continuous contract by his employer subject in all
        cases to a maximum payment not exceeding, where the relevant date
        occurs in a period specified in column 1 of Table A in the Seventh
        Schedule, the amount specified in column 2 of that table opposite to
        the period. (Amended 5 of 1995 s. 6)

(1A) Notwithstanding subsection (1), where-

   (a)  the relevant date occurs in a period specified in column 1 of Table B
        in the Seventh Schedule; and

   (b)  the employee has been employed under a continuous contract by
his employer for a period ("employment period") which immediately precedes the
relevant date and is longer than the period specified in column 2 of that
table opposite to the period in which the relevant date occurs, that part of
the employment period exceeding the period so specified in column 2 of that
table shall be reduced by one half for the purpose of calculating his
entitlement under subsection (1). (Added 5 of 1995 s. 6)

(2) Notwithstanding subsection (1), the employee may elect to have his wages
averaged over the period of 12 months immediately preceding the relevant date,
but where he so elects, then-

   (a)  in the case of a monthly rated employee, the monthly average shall not
        exceed $22500; and

   (b)  in any other case, the total wages for the period of 12 months shall,
        for the purpose of calculating the daily average, not exceed 12 times
        $22500. (Amended L.N. 264 of 1995)

(3) For the purposes of this section, in the case of an employee who was
employed under a continuous contract otherwise than by way of manual labour
and whose average monthly wages during the period of 12 months immediately
preceding the date of commencement of the Employment (Amendment) Ordinance
1990 (41 of 1990) exceed $15000, a reference to the period of employment under
a continuous contract shall not include a reference to any such employment
occurring more than-

   (a)  3 years prior to 1 January 1990, where the relevant date occurs in
        1990;

   (b)  4 years prior to 1 January 1990, where the relevant date occurs in
        1991;

   (c)  5 years prior to 1 January 1990, where the relevant date occurs in
        1992;

   (d)  6 years prior to 1 January 1990, where the relevant date occurs in
        1993;

   (e)  7 years prior to 1 January 1990, where the relevant date occurs in
        1994;

   (f)  8 years prior to 1 January 1990, where the relevant date occurs in
        1995;

   (g)  9 years prior to 1 January 1990, where the relevant date occurs in
        1996;

   (h)  10 years prior to 1 January 1990, where the relevant date occurs in
        1997 or any year thereafter. (Replaced 41 of 1990 s. 9)