Hong Kong Ordinances

EMPLOYMENT ORDINANCE - SECT 31IA

Gratuity or benefit to be reduced by amount of severance payment in certain cases

(Past version on 30/06/1997).

(1) If-

   (a)  because of the operation of the employee's contract of  employment, an
        employee has become entitled to payment of a gratuity based on length
        of service, or to payment of a relevant occupational retirement 
        scheme benefit; or

   (b)  a relevant mandatory provident fund scheme benefit is being held in a
        mandatory provident fund scheme in respect of the employee, and the
        employee has been paid a severance payment under this Part, the
        gratuity or benefit is, to the extent that it is attributable to the
        same years of service as those for which the severance payment is
        payable, to be reduced by the whole amount of the severance payment.

(2) Subsection (1) has effect even though the years of service for which the
severance payment was made exceed those to which the gratuity or benefit is
attributable.

(3) Section 70A of the Occupational Retirement Schemes Ordinance ( Cap 426)
and section 12A of the Mandatory Provident Fund Schemes  Ordinance ( Cap 485)
have effect in relation to this section. (Replaced 4 of 1998 s. 5)