Hong Kong Ordinances

EMPLOYMENT ORDINANCE - SECT 31L

Implied or constructive termination of contract

(1) 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), operates so as to terminate a contract under
        which an employee is employed by him, that act or event shall for the
        purposes of this Part be treated as a termination of the contract by
        the employer, if apart from this subsection it would not constitute a
        termination of the contract by him.

(2) Where subsection (1) applies, and the employee's contract of  employment
is not renewed, and he is not re-engaged under a new contract, as mentioned in
section 31D(2), he shall for the purposes of this Part be taken to be
dismissed by reason of redundancy if the circumstances in which the contract
is not renewed and he is not re-engaged as mentioned in section 31D(2), are
wholly or mainly attributable to one or other of the facts specified in
section 31B(2).

(3) For the purposes of subsection (2), section 31B(2)(a), in so far as it
relates to the employer ceasing or intending to cease to carry on the
business, shall be construed as if the reference to the employer included a
reference to any person to whom, in consequence of the act or event in
question, power to dispose of the business has passed.

(4) In this section any reference to section 31D(2) includes a reference to
section 31D(2) as applied by section 31J(2). [cf. 1965 c. 62 s. 22 U.K.]