| For both employer and helper |
| 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 as
permanently unfit for the present job and he/she resigns;
- is aged 65 or above and he/she resigns; or
- dies in service.
|
| Q8.3 |
Would a helper be entitled to severance payment and long
service payment simultaneously? |
| A |
No. A helper will not be simultaneously entitled to both long
service payment and severance payment. A helper dismissed by reason
of redundancy is entitled to severance payment but not long service
payment. |
| Q8.4 |
How are severance payment and long service payment calculated? |
| A |
The following formula applies to the calculation of both severance
payment and long service payment :
[(Monthly wages x 2/3) x reckonable years of servicesNote]
NoteService of incomplete year should be
calculated on a pro rata basis.
(For details of calculation, please refer to the booklet "A
Concise Guide to the Employment Ordinance".)
|
*If not less than seven days before the date of dismissal/expiry of
the fixed term contract in case of severance payment, and seven days
before the expiry of the fixed term contract in case of long service
payment, the employer has offered in writing to renew the contract
of employment but the employee has unreasonably refused the offer,
the employee is not eligible for the entitlements. |
