s 48 Payment of annual wage supplement or other variable payment
48.—(1) Where a contract of service or collective agreement made before 26 August 1988 provides for the payment by the employer of any annual wage supplement, annual bonus or annual wage increase, the payments continue to be payable by the employer until the employer and the employer’s employees or a trade union representing the employer’s employees have negotiated and agreed to vary the payments. (2) An employer and the employer’s employees or a trade union representing the employer’s employees may negotiate for and agree to a variable payment based on the trading results or productivity or on any other criteria agreed upon by the parties concerned. (3) Where an employer has not paid any annual wage supplement prior to 26 August 1988, any contract of service or collective agreement made on or after that date between the employer and the employer’s employees or a trade union representing the employer’s employees must not contain a provision for the payment of an annual wage supplement exceeding the equivalent of one month’s wages of the employees. (4) Any person who, or any trade union of employees which, requests (whether orally or in writing) or invites negotiations for the payment by an employer of an annual wage supplement which is in excess of the amount specified in subsection (3) and any employer who pays an annual wage supplement exceeding the amount specified in subsection (3) shall be guilty of an offence. (5) Even though an annual wage supplement may be payable under subsection (1) or (3), an employer may, in the event of exceptionally poor business results for any year, invite the employees or a trade union representing the employer’s employees to negotiate for a lower quantum of annual wage supplement or for no annual wage supplement to be paid for that year.