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long service pay

  1. #1
    hkmama1 is offline Registered User
    Join Date
    Jul 2006
    Location
    NT
    Posts
    16

    long service pay

    my helpers contract is up at the end of the year, its her second contract with me, 4 years. my questions are:

    1. can i renew her contract for 7 months because i am leaving hk.

    2. am i expected to pay her long service pay

    thanks

  2. #2
    rani's Avatar
    rani is offline Administrator
    Join Date
    Sep 2002
    Location
    Pokfulam, Hong Kong
    Posts
    5,729
    Hi,

    You can renew her contract but it will be for another 2 years and you will need to pay severance, which is calculated exactly the same as long-term service.

    [(Monthly wages x 2/3) x reckonable years of service Note]
    Note Service of incomplete year should be calculated on a pro rata basis.

    Taken from the FDH Guide

    Q8.1 Under what circumstances should an employer pay severance payment to
    a helper?
    A An employer should pay severance payment to the helper if he/she:
    - is dismissed or the fixed term contract is not being renewed* by reason of
    redundancy; and
    - has not less than 24 months of service with the same employer
    immediately prior to the termination.

    Q8.2 Under what circumstances should an employer pay long service payment
    to a helper?
    A An employer should pay long service payment to the helper if he/she has
    worked continuously for not less than five years, and :
    - is dismissed or the fixed term contract is not being renewed* by reason
    other than serious misconduct or redundancy;
    - is certified by a registered medical practitioner or registered Chinese
    medicine practitioner as permanently unfit for the present job and he/she
    resigns;
    - is aged 65 or above and he/she resigns; or
    - dies in service.

    http://www.labour.gov.hk/eng/public/wcp/FDHguide.pdf
    Last edited by rani; 08-23-2007 at 10:30 PM.

  3. #3
    momofthree is offline Registered User
    Join Date
    Sep 2006
    Location
    Hong Kong
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    56
    So if you sign a new contract knowing that you will be leaving before the two years are up,you need to pay severence pay?Do I understand correctly?

  4. #4
    1/3J is offline Registered User
    Join Date
    Feb 2007
    Location
    Hong Kong
    Posts
    79
    If by the time of termination you have employed her for at least 2 years and the reason is you no longer equire such service (at least in HK) since you are leaving, then you'll need to pay severance payment.

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