Hong Kong Ordinances

EMPLOYMENT ORDINANCE - SECT 31YA

Reduction of long service payment and other amounts on employee's death

(Past version on 30/06/1997).

(1) If-

   (a)  an employee has died; and

   (b)  as a result of the death, a person becomes entitled to payment of a
        long service payment and-

        (i)    because of the operation of the employee's contract of 
               employment, one or more gratuities based on length of service
               or one or more relevant occupational retirement scheme benefits
               have been paid to the person in respect of the employee; or

        (ii)   a relevant mandatory provident fund scheme benefit is being
               held in a mandatory provident fund scheme in respect of the
               employee, or has been paid to or in respect of the employee,
               the long service payment is to be reduced by the total amount
               of all of the gratuities and benefits to or in respect of the
               employee to the extent that they relate to the employee's years
               of service for which the long  service payment is payable.

(2) If-

   (a)  an employee has died; and

   (b)  as a result of the death, a person-

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

        (ii)   becomes entitled to payment of a relevant mandatory provident 
               fund scheme benefit; and

   (c)  a long service payment under this Part has been paid to the person in
        respect of the employee, the gratuity or benefit is, to the extent
        that it is attributable to the same years of service as those for
        which the long service payment is payable, to be reduced by the whole
        of the long service payment.

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

(4) If-

   (a)  the employer of an employee who has died is, as a result of the
        employee's death, required to make a long service payment under
        section  31RA to a person; and

   (b)  another person is entitled to one or more gratuities, relevant 
        occupational retirement scheme benefits or
        relevant mandatory provident  fund scheme benefits as a result of that
        death, that other person is entitled to be paid the gratuities,
        relevant  occupational retirement scheme benefits and
        relevant mandatory provident  fund scheme benefits relating to the
        employee's years of service only to the extent that the total amount
        of those gratuities and benefits exceeds the amount of the
        long service payment.

(5) If-

   (a)  the employer of an employee who has died has made a long 
        service payment under section 31RA to a person as a result of the
        employee's death; and

   (b)  the administrator of an occupational retirement scheme has paid a
        relevant occupational retirement scheme benefit, or the approved
        trustee of a mandatory provident fund scheme has paid a
        relevant mandatory  provident fund scheme benefit, to another person
        as a result of that death, that other person must repay the benefit to
        that administrator or trustee except for the amount of the excess
        referred to in subsection (4).

(6) On being repaid the benefit, the administrator or trustee must pay it to
the employer concerned.

(7) 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)