Section 31G

Amount of severance payment

遣散費的款額

Part VA — Severance Payments (遣散費)

All legislation content is under active development and may contain errors. If you spot anything wrong, please use the report icon in the bottom-right corner.

Statutory Text

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

(a) in the case of a monthly rated employee, two-thirds of his last full month’s wages, or two-thirds of $22,500, whichever is less; or

(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 $22,500, whichever is less,

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.

(1A)

(2) Despite subsection (1), the employee may, for a calculation under that subsection, elect to have the employee’s wages averaged over the period of 12 months immediately preceding the relevant date as if—

(a) in the case of a monthly rated employee—the amount specified under paragraph (a) of that subsection for the calculation were two-thirds of the employee’s average monthly wages during such a period, or two-thirds of $22,500, whichever is less; or

(b) in any other case—the amount specified under paragraph (b) of that subsection for the calculation were 18 times the employee’s average daily wages during such a period.

(2A) For calculating the average daily wages under subsection (2)(b) , the total wages for the period of 12 months must not exceed 12 times $22,500.

(3)

Note— See also section 31ZEA , and section 2 of Schedule 11 . (Added 4 of 2022 s. 4 )

No annotated cases found for this section yet. Case annotations are being expanded.

Need more cases about Section 31G of the Employment Ordinance?

Research with Casebird