Employment Ordinance

(1)
Subject to subsections (1A) and (1B), where, in the case of an employee to whom this Part applies who has not been employed by the same employer for the whole of a payment period but has been so employed for a period of not less than 3 months in the payment
period—
(Amended
74 of 1997 s. 8
;
7 of 2001 s. 4
)
(a)
the contract of employment is
terminated—
(i)
at any time during the payment period; or
(ii)
on the expiry of the payment period; or
(Replaced
7 of 2001 s. 4
)
(b)
the employee continues to be employed by the employer after the expiry of the payment period,
the employee shall be paid a proportion, calculated in accordance with subsection (2), of the end of year payment that would have been payable under this Part if he had been employed by the same employer for the whole of the payment period.
(1A)
If it is a term or condition of a contract of employment that the employee is on probation, the period of such probation or a period of 3 months, whichever is the shorter, shall be excluded from the calculation of the 3 months’ period under subsection (1).
(Added
74 of 1997 s. 8
)
(1B)
Subsection
(1
)(
a)
shall not apply where a contract of employment is
terminated—
(a)
by the employee (except such a termination which is in accordance with
section 10
); or
(b)
in accordance with
section 9
.
(Added
7 of 2001 s. 4
)
(2)
The proportion of the end of year payment payable under subsection (1) shall
be—
(a)
the proportion specified in that behalf in the contract of employment; or
(b)
if a proportion is not so specified, the sum which bears the same proportion to a full month’s wages of the employee as his period of service under the contract of employment in the payment period bears to that payment period.
(3)
The proportion of the end of year payment payable under subsection (1) shall become due to the
employee—
(a)
under paragraph (a) of that
subsection—
(i)
on the day on which the contract of employment terminates; or
(ii)
in the case of a proportion of an end of year payment that falls to be calculated by reference to any profits of the employer, on the day on which the profits of the employer are ascertained; or
(b)
under paragraph (b) of that
subsection—
(i)
subject to subsection (4), on the day specified in the contract of employment as the day on which the end of year payment becomes due; or
(ii)
if a day is not so specified, on the last day of the payment period,
and shall be paid as soon as is practicable but in any case not later than 7 days after that day but nothing in this subsection shall be construed as preventing the payment of the proportion of the end of year payment at any time before that day.
(4)
Where the contract of employment of an employee to whom subsection
(1
)(
b)
applies is terminated after the expiry of the payment period but before the end of year payment becomes due on the day specified in the contract, the proportion of the end of year payment payable under subsection (1) shall, notwithstanding that a day is so specified, become due to the
employee—
(a)
on the day on which the contract of employment terminates; or
(b)
in the case of a proportion of an end of year payment that falls to be calculated by reference to any profits of the employer, on the day on which the profits of the employer are ascertained,
and shall be paid as soon as is practicable but in any case not later than 7 days after that day.