Hong Kong Ordinances

EMPLOYMENT ORDINANCE - SECT 31O

Making of severance payment

(1) Where an employee is entitled to a severance payment under this Part, his
employer shall make the severance payment to him not later than 2 months from
the receipt of a notice in accordance with paragraph (b) of section 31N unless
either the employer or the employee has, before the expiration of that period,
made the severance payment the subject of a claim filed with-

   (a)  the Registrar of the Minor Employment Claims Adjudication Board in
        accordance with Part IV of the Minor Employment Claims Adjudication 
        Board Ordinance ( Cap 453); or

   (b)  the Registrar of the Labour Tribunal in accordance with Part IV of the
        Labour Tribunal Ordinance ( Cap 25). (Amended 61 of 1994 s. 51)

(1A) Where the Minor Employment Claims Adjudication Board or Labour  Tribunal
has ordered that any sum in respect of severance payment is payable by an
employer, it shall order the time within which such sum shall be payable,
provided that if it has made no order as to the time within which the sum
shall be payable, the sum shall be paid within 14 days from the date of the
order of payment. (Added 62 of 1992 s. 8. Amended 61 of 1994 s. 51)

(2) A severance payment shall be made in legal tender except that, where the
employee so consents, payment may be made-

   (a)  by cheque, money order or postal order;

   (b)  into an account in his name with any bank within the meaning of
        section 2 of the Banking Ordinance ( Cap 155); or (Amended 49 of 1995
        s. 53)

   (c)  to his duly appointed agent.

(3) (a) An employer who without reasonable excuse fails to comply with
subsection (1) or (1A) shall be guilty of an offence and shall be liable on
conviction to a fine at level 5.

   (b)  An employer who without reasonable excuse fails to comply with
        subsection (2) shall be guilty of an offence and shall be liable on
        conviction to a fine at level 3. (Replaced 103 of 1995 s. 8)