Full legislation
s.5
Sections 31Y, 31YAA, 31YA, 31YB and 31YC modified
“
31Y.
Long service payment to be reduced by amount of gratuities and
benefits in certain cases
(1)
This section applies
if—
(a)
a specified employee becomes entitled to payment of a long service
payment under this Part; and
(b)
any of the following conditions is
met—
(i)
because of the operation of the employee’s contract of
employment, one or more gratuities based on length of service have
been paid to the employee;
(ii)
because of the operation of that contract, one or more
employer-funded ORS benefits have been paid to the
employee;
(iii)
one or more employer-funded MPFS benefits are being held in one
or more mandatory provident fund schemes in respect of the employee,
or have been paid to or in respect of the employee.
(2)
The
pre-
transition portion of the long service payment is to be reduced
by the aggregate amount of the qualifying items specified under subsection
(4
)(
a)
, (b), (c), (d) and (e) to the extent that—
(a)
the gratuity or benefit relates to the employee’s years of service
for which the long service payment (including both the pre-transition
portion and post-transition portion of the payment) is payable;
and
(b)
in the case of a qualifying item specified under subsection
(4
)(
a)
, (b) or (c)—the gratuity or benefit has not been
used for a reduction under subsection (3).
(3)
The
post-
transition portion of the long service payment is to be reduced
by the aggregate amount of the qualifying items specified under subsection
(4
)(
a)
, (b) and (c) to the extent that—
(a)
the gratuity or benefit relates to the employee’s years of service
for which the long service payment (including both the pre-transition
portion and post-transition portion of the payment) is payable;
and
(b)
the gratuity or benefit has not been used for a reduction under
subsection (2).
(4)
The following items are qualifying items specified for the purposes of
subsections (2) and (3
)—
(a)
every one of the gratuities referred to in subsection
(1
)(
b
)(
i)
;
(b)
every one of the employer-funded ORS benefits referred to in
subsection
(1
)(
b
)(
ii)
that are employer-funded (specified)
ORS benefits;
(c)
every one of the employer-funded MPFS benefits referred to in
subsection
(1
)(
b
)(
iii)
that are employer-funded (voluntary)
MPFS benefits;
(d)
every one of the employer-funded ORS benefits referred to in
subsection
(1
)(
b
)(
ii)
that are employer-funded (basic
portion) exempt ORS benefits;
(e)
every one of the employer-funded MPFS benefits referred to in
subsection
(1
)(
b
)(
iii)
that are employer-funded (mandatory)
MPFS benefits.
31YAA.
Gratuity or benefit to be reduced by amount of long service payment
in certain cases
(1)
This section applies
if—
(a)
any of the following conditions is met in relation to a specified
employee—
(i)
because of the operation of the employee’s contract of
employment, the employee becomes entitled to payment of one or more
gratuities based on length of service;
(ii)
because of the operation of that contract, the employee becomes
entitled to payment of one or more employer-funded ORS
benefits;
(iii)
one or more employer-funded MPFS benefits are being held in one
or more mandatory provident fund schemes in respect of the employee;
and
(b)
the employee has been paid a long service payment under this
Part.
(1A)
The aggregate amount of the qualifying items specified under subsection
(1C
)(
a)
, (b), (c), (d) and (e) is to be reduced by the whole
amount of the
pre-
transition portion of the long service payment to the
extent
that—
(a)
the gratuity or benefit is attributable to the same years of
service as those for which the long service payment (including both the
pre-transition portion and post-transition portion of the payment) is
payable; and
(b)
in the case of a qualifying item specified under subsection
(1C
)(
a)
, (b) or (c)—the gratuity or benefit has not been
reduced under subsection (1B).
(1B)
The aggregate amount of the qualifying items specified under subsection
(1C
)(
a)
, (b) and (c) is to be reduced by the whole amount of
the
post-
transition portion of the long service payment to the extent
that—
(a)
the gratuity or benefit is attributable to the same years of
service as those for which the long service payment (including both the
pre-transition portion and post-transition portion of the payment) is
payable; and
(b)
the gratuity or benefit has not been reduced under subsection
(1A).
(1C)
The following items are qualifying items specified for the purposes of
subsections (1A) and (1B
)—
(a)
every one of the gratuities referred to in subsection
(1
)(
a
)(
i)
;
(b)
every one of the employer-funded ORS benefits referred to in
subsection
(1
)(
a
)(
ii)
that are employer-funded (specified)
ORS benefits;
(c)
every one of the employer-funded MPFS benefits referred to in
subsection
(1
)(
a
)(
iii)
that are employer-funded (voluntary)
MPFS benefits;
(d)
every one of the employer-funded ORS benefits referred to in
subsection
(1
)(
a
)(
ii)
that are employer-funded (basic
portion) exempt ORS benefits;
(e)
every one of the employer-funded MPFS benefits referred to in
subsection
(1
)(
a
)(
iii)
that are employer-funded (mandatory)
MPFS benefits.
(2)
Subsections (1A) and (1B) have effect even though the years of service
for which the long service payment (including both the pre-transition
portion and post-transition portion of the payment) was made exceed those to
which the gratuity or benefit is attributable.
31YA.
Long service payment to be reduced by amount of gratuities and
benefits on specified employee’s death
(1)
This section applies
if—
(a)
a specified employee has died;
(b)
as a result of the death, a person becomes entitled to payment of a
long service payment under
section 31RA
; and
(c)
any of the following conditions is
met—
(i)
because of the operation of the employee’s contract of
employment, one or more gratuities based on length of service have
been paid to the person in respect of the employee;
(ii)
because of the operation of that contract, one or more
employer-funded ORS benefits have been paid to the person in respect
of the employee;
(iii)
one or more employer-funded MPFS benefits are being held in one
or more mandatory provident fund schemes in respect of the employee,
or have been paid to or in respect of the employee.
(2)
The
pre-
transition portion of the long service payment is to be reduced
by the aggregate amount of the qualifying items specified under subsection
(4
)(
a)
, (b), (c), (d) and (e) to the extent that—
(a)
the gratuity or benefit relates to the employee’s years of service
for which the long service payment (including both the pre-transition
portion and post-transition portion of the payment) is payable;
and
(b)
in the case of a qualifying item specified under subsection
(4
)(
a)
, (b) or (c)—the gratuity or benefit has not been
used for a reduction under subsection (3).
(3)
The
post-
transition portion of the long service payment is to be reduced
by the aggregate amount of the qualifying items specified under subsection
(4
)(
a)
, (b) and (c) to the extent that—
(a)
the gratuity or benefit relates to the employee’s years of service
for which the long service payment (including both the pre-transition
portion and post-transition portion of the payment) is payable;
and
(b)
the gratuity or benefit has not been used for a reduction under
subsection (2).
(4)
The following items are qualifying items specified for the purposes of
subsections (2) and (3
)—
(a)
every one of the gratuities referred to in subsection
(1
)(
c
)(
i)
;
(b)
every one of the employer-funded ORS benefits referred to in
subsection
(1
)(
c
)(
ii)
that are employer-funded (specified)
ORS benefits;
(c)
every one of the employer-funded MPFS benefits referred to in
subsection
(1
)(
c
)(
iii)
that are employer-funded (voluntary)
MPFS benefits;
(d)
every one of the employer-funded ORS benefits referred to in
subsection
(1
)(
c
)(
ii)
that are employer-funded (basic
portion) exempt ORS benefits;
(e)
every one of the employer-funded MPFS benefits referred to in
subsection
(1
)(
c
)(
iii)
that are employer-funded (mandatory)
MPFS benefits.
31YB.
Gratuity or benefit to be reduced by amount of long service payment
on specified employee’s death
(1)
This section applies
if—
(a)
a specified employee has died;
(b)
any of the following conditions is met in relation to a
person—
(i)
as a result of the death, the person, because of the operation
of the employee’s contract of employment, becomes entitled to
payment of one or more gratuities based on length of
service;
(ii)
as a result of the death, the person, because of the operation
of that contract, becomes entitled to payment of one or more
employer-funded ORS benefits;
(iii)
as a result of the death, the person becomes entitled to
payment of one or more employer-funded MPFS benefits; and
(c)
a long service payment has been paid under
section 31RA
to the person in respect of the employee.
(2)
The aggregate amount of the qualifying items specified under subsection
(4
)(
a)
, (b), (c), (d) and (e) is to be reduced by the whole
amount of the
pre-
transition portion of the long service payment to the
extent
that—
(a)
the gratuity or benefit is attributable to the same years of
service as those for which the long service payment (including both the
pre-transition portion and post-transition portion of the payment) is
payable; and
(b)
in the case of a qualifying item specified under subsection
(4
)(
a)
, (b) or (c)—the gratuity or benefit has not been
reduced under subsection (3).
(3)
The aggregate amount of the qualifying items specified under subsection
(4
)(
a)
, (b) and (c) is to be reduced by the whole amount of
the
post-
transition portion of the long service payment to the extent
that—
(a)
the gratuity or benefit is attributable to the same years of
service as those for which the long service payment (including both the
pre-transition portion and post-transition portion of the payment) is
payable; and
(b)
the gratuity or benefit has not been reduced under subsection
(2).
(4)
The following items are qualifying items specified for the purposes of
subsections (2) and (3
)—
(a)
every one of the gratuities referred to in subsection
(1
)(
b
)(
i)
;
(b)
every one of the employer-funded ORS benefits referred to in
subsection
(1
)(
b
)(
ii)
that are employer-funded (specified)
ORS benefits;
(c)
every one of the employer-funded MPFS benefits referred to in
subsection
(1
)(
b
)(
iii)
that are employer-funded (voluntary)
MPFS benefits;
(d)
every one of the employer-funded ORS benefits referred to in
subsection
(1
)(
b
)(
ii)
that are employer-funded (basic
portion) exempt ORS benefits;
(e)
every one of the employer-funded MPFS benefits referred to in
subsection
(1
)(
b
)(
iii)
that are employer-funded (mandatory)
MPFS benefits.
(5)
Subsections (2) and (3) have effect even though the years of service
for which the long service payment (including both the pre-transition
portion and post-transition portion of the payment) was made exceed those to
which the gratuity or benefit is attributable.
31YC.
Certain persons’ entitlements to gratuities or benefits on specified
employee’s death
(1)
This section applies
if—
(a)
a specified employee has died;
(b)
as a result of the death, the employer is required to pay a long
service payment under
section 31RA
to a person (
Person
A
); and
(c)
any of the following conditions is met in relation to another person
(
Person B
)—
(i)
as a result of the death, Person B, because of the operation of
the employee’s contract of employment, becomes entitled to payment
of one or more gratuities based on length of service;
(ii)
as a result of the death, Person B, because of the operation of
that contract, becomes entitled to payment of one or more
employer-funded ORS benefits;
(iii)
as a result of the death, Person B becomes entitled to payment
of one or more employer-funded MPFS benefits.
(2)
A reference to a gratuity based on length of service, employer-funded
ORS benefit or employer-funded MPFS benefit in subsection
(1
)(
c)
is a reference to such a gratuity or benefit relating to the employee’s
years of service for which the long service payment is payable.
(3)
Person B is entitled to payment of any gratuities or benefits mentioned
in subsection
(1
)(
c)
only to the extent of the aggregate amount
of every one of such gratuities and benefits that would remain if such
gratuities and benefits were to be reduced under
section 31YB
that applies on the basis that Person B were entitled to payment of, and had
been paid, the amount of the long service payment.
(4)
Subsection (5) applies
if—
(a)
the employer has paid a long service payment mentioned in
subsection
(1
)(
b)
to Person A; and
(b)
either or both of the following conditions are
met—
(i)
as a result of the employee’s death, the administrator of an
occupational retirement scheme has paid an employer-funded ORS
benefit to Person B;
(ii)
as a result of the employee’s death, the approved trustee of a
mandatory provident fund scheme has paid an employer-funded MPFS
benefit to Person B.
(5)
Person B must repay the benefit to the administrator or trustee except
for an amount the payment of which Person B is entitled to under subsection
(3).
(6)
On being repaid the benefit, the administrator or trustee must pay it
to the employer concerned.”.