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Related Service:<< Advanced Contract Renewal >>

 Eligibility Criteria
Q. 1:   Under what conditions will an employer enjoy the waiver of levy during the suspension period from 1 August 2008 to 31 July 2013?
A. 1:  Employers are not required to pay the Employees Retraining Levy as long as the visas for the helpers are granted by the Director of Immigration from 1 August 2008 to 31 July 2013 regardless of the date of signing the employment contract or the date of submission of the visa application.
Q. 2: How to determine the date on which visa is granted by the Immigration Department?
A. 2: The date of issue of the visa is printed on the visa label which should also be the date of visa collection.
Q. 3: Can I still be benefited from the waiver of levy if my helper's application was submitted before 1 August 2008 but the visa has not been collected?
A. 3: The suspension will apply to cases where the employment visa of the helper is granted by the Immigration Department between 1 August 2008 and 31 July 2013, regardless of the date on which the visa application is submitted. However, if the visa label has not been collected for 3 months after the date of approval, the application may be taken as cancelled.
Q. 4: Could the employer ask his/her FDH to work while waiting for the issue of the employment visa?
A. 4: The Employees' Compensation Ordinance (Cap. 282) lays down the rights and obligations of employers and employees in respect of injuries or death caused by accidents arising out of and in the course of employment. The Ordinance also stipulates that no employer shall employ any employee in any employment unless there is in force in relation to such employee a policy of insurance to cover the employer's liabilities both under the Ordinance and at common law.
Insofar as the employment of FDHs is concerned, the employee's compensation insurance policy is valid only during the employment period (i.e. during the validity period of the employment visa of the FDHs concerned). Besides, unless there are other additional terms, these insurance policies would usually cover the injuries or death suffered by an employee arising out of and in the course of employment only. So, if the FDH has yet been granted a valid employment visa, the employer should not ask his/her FDH to work while waiting for the issue of the employment visa, or else he/she may commit an offence of employing a person who is not lawfully employable. If the FDH suffers injuries or death in the period, the employer may also have to shoulder the civil liabilities of making compensation in huge sum.
Q. 5: If my prospective helper was issued with a visa issued before 1 August 2008 but the visa was lost, can I request to have a replacement visa issued after 1 August 2008 so that I can enjoy the waiver of levy?
A. 5: Replacement visa will only be issued if the existing visa is lost or damaged. Even though the replacement visa is issued after 1 August 2008, you will not enjoy the waiver of levy under such circumstances.
Q. 6: Is there any quota for each employer to enjoy the waiver of levy? If I apply to employ more than one helper and their employment visas are all granted within the suspension period, will all contracts be exempt from levy payment?
A. 6: As long as the employment visas of the helpers are granted within the suspension period, levy will be waived. There is no quota for the number of contracts to be exempt from levy payment for each employer.
 Advanced Contract Renewal
Q. 7:
If the contract with my helper has yet to run its 2-year full course, can I terminate the contract and enter into a new one with the same helper so as to benefit from the waiver of levy during the suspension period?
A. 7: It is the contractual parties' own decision whether or not to terminate a contract but they have to observe their individual obligations regarding termination of contract. From 1 August 2008, a new special arrangement was introduced whereby application for advanced contract renewal involving the same employer and the same employee is accepted during the suspension period i.e. from 1 August 2008 to 31 July 2013. Under the new arrangement, the helper does not need to apply afresh from abroad to re-enter Hong Kong for employment. The employer and the helper may opt to start the new contract in Hong Kong immediately after the termination of the existing contract.
Q. 8:
How could I submit the application for advanced contract renewal?
A. 8: The application procedures are similar to those of the normal contract renewal cases. The new contract has to be notarized if so required by the relevant Consulate. Besides, a written confirmation duly signed by the employer and the helper regarding the termination of the existing contract and the date of termination is required. For streamlining of procedures, proof of the employer's financial position is waived for this kind of application if there is no change of employer.
Q. 9:
Is there any time frame for submission of the advanced contract renewal application?
A. 9: The application for advanced contract renewal has to be submitted before the end date of the suspension i.e. 31 July 2013. Normally, such application can be made within 4 weeks prior to the termination of the existing contract. However, to ensure that applications received could be properly processed for the grant of visa before the end date of the suspension, the Immigration Department would need to set a cut-off date for employers to submit visa applications for advanced renewal of contracts and new contracts, where part of the contract period falls after 31 July 2013. The Immigration Department would work out the exact cut-off date taking into account the operational experience after the suspension has taken effect and make prior announcement in early 2013 to inform the public of the application deadline and other detailed arrangements.
Q. 10:
If I terminate prematurely the existing contract with my helper and enter into a new contract with her immediately, will there be any break in the service of my helper?
A. 10: Whether there will be a break of service would very much depend on the circumstances of the individual cases. That said, the application for premature contract renewal has to be made prior to the termination of the existing contract. If the application is approved, an extension of stay of normally not exceeding one year may be granted together with the issuance of an entry visa with validity in line with the extension of stay granted.
Q. 11: What is the processing time for advanced contract renewal application?
A. 11: The application will normally be finalized within the same day if all necessary supporting documents are in order. However, if there is upsurge of applications, applicants may be programmed for submission of application or collection of visa as appropriate.
Q. 12: What are the approval criteria for advanced contract renewal applications?
A. 12: Each application will be considered and assessed on its individual merits in accordance with the prevailing policies. Normally, if there is no change in circumstances since the approval of the last contract, the application will be favourably considered.
Q. 13:
It is said that the Director of Immigration reserves the right to refuse visas for advanced contract renewal for cases involving blatant manipulation. What are these cases?
A. 13: Application may be refused if the bona fides of the employer and the helper are in doubt; or if there is known record to the detriment of the employer and/or the helper, such as illegal deployment of the helper for non-domestic duties; or there is breach of the standard Employment Contract (ID407), such as the helper failing to work and reside at the employer's residence as stated in the contract.
Q. 14: Where can I submit the application for advanced contract renewal application?
A. 14: Application may be submitted in person or through the authorized representative to the Foreign Domestic Helpers Section or the Immigration Branch Offices (except the Hong Kong Island Travel Documents Issuing Office).
Q. 15: What are the forms and documents required for the advanced contract renewal application?
A. 15: The employer and the helper have to complete form ID988B and ID988A respectively. Supporting documents required include an original copy of each of the current and the new employment contract, original of the helper's passport, copy of the helper's Hong Kong identity card, proof of the employer's residential address (original and copy), and letter of termination of the current contract signed by the employer and the helper. Further documents in support of the application may be required by the processing officer in individual cases.
 Questions relating to visa issued before 1 August 2008
Q. 16: Do I still need to pay levy for my old contract if I renew the contract with my existing helper after 1 August 2008?
A. 16: For those contracts where visas are granted before 1 August 2008, employers should continue to pay the levy as required under the law until the end of the contract. Employers are reminded to pay levy in accordance with the due-date as specified in the Payment Note (ID971). The employer is required to pay the whole instalment ($2,400) irrespective of the actual period the helper has worked for the employer in that instalment period. For example, if the employer has paid for the first instalment and is going to prematurely terminate his/her helper in the 7th month of the employment period, the employer is required to pay the second instalment in full.
Q. 17: If the contract with my existing helper will complete its 2-year course in June 2013 and we agree to renew the contract with visa issued on or before 31 July 2013, how long can I enjoy the waiver of levy?
A. 17: You can enjoy the waiver of levy for the whole contract until its completion or termination if the visa is issued on or before 31 July 2013.
Q. 18:
Can I transfer the unused balance of levy of old contract to the helper who will be employed after the suspension period?
A. 18: No. As the amount of levy payable per month will become $0 during the suspension period, all unused balance of levy will not be carried forward to the time after the suspension ends.
Q. 19:
I have collected visa for my helper before 1 August 2008. Now I decide to cancel the visa as it has not been activated. How can I get back the levy paid for the first instalment ($2,400)?
A. 19: All levy paid is not refundable under any circumstances.
Q. 20: My helper's visa was granted on 16 July 2008 and arrived Hong Kong to commence to work for me on 4 August 2008. Do I need to pay the remaining instalments if the contract is to be terminated on 2 February 2009 i.e. in the 6th month of employment period?
A. 20: No. You do not need to pay the remaining instalments under the existing arrangement.
Q. 21: I received a reminder to ask me to settle the whole second levy instalment ($2,400) but I had just employed the helper for 6 months and 14 days. Can I settle the payment on pro-rata basis? What is the consequence if I do not settle the payment?
A. 21: The levy should be settled in full instalment and no pro-rata payment will be accepted. Legal action may be taken against you to recover the outstanding instalment(s). Immigration Department will also take into account such adverse record if you submit another application for employing helpers from abroad. You may thus be considered ineligible for employment of helper from abroad for a certain period of time.
Q. 22: Can the unused balance of levy be refunded after 1 August 2008?
A. 22: All unused levy is not refundable under any circumstances.
Q. 23:
Is there any change to the amount of levy payable and payment method during the suspension period for contracts with visas issued before 1 August 2008?
A. 23: No. The levy payable for each helper with visa issued before 1 August 2008 is still $400 per month multiplied by the number of months covered by the employment contract. For payment by instalment cases, employers may make the subsequent instalment payment in person or through representatives in cash or by cheque to the Foreign Domestic Helpers Section at the Immigration Headquarter or Immigration Branch Offices listed on the back of the Payment Note (ID971) within office hours. If you opt to send the payment by post or drop-in box, you are required to enclose your cheque (quoted with the file reference) and the Payment Note and send them by mail or drop them at the designated collection box at the Immigration Department Headquarters.
Procedural Change
Q. 24: Is there any change to the existing procedures in submitting an application for employment of a helper after 1 August 2008?
A. 24: No. The application procedures remain largely the same except the prospective employer need not pay the levy for visa granted by the Immigration Department during the suspension period.

Contractual and statutory entitlements of FDHs (Advanced Contract Renewal)

(i)

Rights and obligations issues
Q. 25: If an employer terminates the helper's contract before completion, signs a new contract with the same helper and submits application to the Immigration Department for advanced renewal, does the employer need to make termination payments to the helper?
A. 25: If the new contract of the helper takes effect immediately after the ending of the existing contract, the helper's years of service with the employer will not be affected or interrupted due to the advanced renewal. In general, the employer does not need to pay the helper long service payment or other termination payments calculated according to years of service.
However, the employer has obligation to follow the contractual terms signed by both parties in the termination of contract. According to the provision of the standard employment contract, the employer need to give the helper one month's notice or one month's wages in lieu of notice for termination. Regarding the arrangement for free passage provided to the helper upon termination, please refer to question 26.
Each case has its own circumstances and is subject to individual merits and mutual arrangements by both parties. In case of dispute, it may be necessary to seek adjudication of the Labour Tribunal or Minor Employment Claims Adjudication Board.
Q. 26: If the employer prematurely terminates the helper's contract and renews the contract with the same helper, does it affect the helper's statutory entitlements under the Employment Ordinance?
A. 26: Some statutory entitlements under the Employment Ordinance are related to the employee's length of continuous employment, such as long service payment, severance payment, number of days of annual leave, number of paid sickness days etc. If the new contract of the helper takes effect immediately after the ending of the existing contract, the helper's years of service with the employer will not be affected or interrupted due to the advanced renewal. Therefore, in general, the statutory entitlements of the helper will not be affected.

In the above circumstances, the employer should calculate and grant annual leave and statutory holidays to the helper in the way that the continuity of contract is not broken.

Example:
Helper's commencement date of employment: 1 June 2007
(expiry date of existing contract: 31 May 2009)
Effective date of premature termination: 5 August 2008
Effective date of new contract: 6 August 2008
(expiry date of new contract: 5 August 2010)

Annual leave

  • The helper has not taken any annual leave. He/she has accumulated 7 days' annual leave during the leave year from 1 June 2007 to 31 May 2008 (assuming that the employer has not appointed leave year otherwise).
     
  • The employer should grant the above-mentioned 7 days' annual leave to the helper during the subsequent leave year from 1 June 2008 to 31 May 2009.
     
  • The second leave year for calculating the annual leave for the helper should be 1 June 2008 to 31 May 2009.

Statutory holiday

  • As the helper's length of service is calculated from 1 June 2007, he/she has continuous employment for not less than 3 month immediately preceding 15 September 2008 (the day following Mid-Autumn Festival). The employer needs to grant pay for that statutory holiday to the helper.

Each case has its own circumstances and is subject to individual merits and mutual arrangements by both parties. In case of dispute, it may be necessary to seek adjudication of the Labour Tribunal or Minor Employment Claims Adjudication Board.

Q. 27: Under the Advanced Contract Renewal Arrangement, the Immigration Department allows the FDHs to continue to work in Hong Kong. As such, why the employers are still required to grant free passage to the FDHs?
A. 27: According to the standard employment contract, an employer shall provide the helper with free passage to his/ her place of origin on termination of the contract.
Following the Advanced Contract Renewal Arrangement, under which the Immigration Department does not require the FDHs to leave Hong Kong immediately after the termination of the contract and before the new employment contract takes effect, there are two scenarios for the employers to honour the above "free passage" contractual obligation :
  1. New contract takes effect immediately: Where the employer and FDH renew the contract immediately after termination of the previous one, the FDH would not need to leave Hong Kong immediately, and as such, the employer would not need to provide free passage at this point of time. Under this circumstance, an FDH would be allowed to continue his/her stay in Hong Kong for not more than one year, and be issued with a visa with the same validity as his/her extended stay so that the FDH would leave Hong Kong within the permitted stay and then come back to complete their two-year contract. As such, the FDH would have chance to go home within the first year of the new contract. The employer shall then provide free passage for the FDH. This arrangement is in line with the established practice for FDH employment contract renewal cases.
  2. New contract takes effect subsequently: Upon agreement of the employer and FDH, the FDH may leave Hong Kong immediately after the termination of the previous contract. The employer shall then provide the FDH with free passage. Under this circumstance, ImmD would issue a visa to the FDH so that he/ she can come back to Hong Kong to commence the new contract. Usually, the FDH would be allowed to stay for two years upon return to Hong Kong for completion of new employment contract.

The above arrangements are in line with the provisions of the employment contracts signed by employers and FDHs, i.e. the employer shall provide free passage to the FDH, though the actual timing would depend on the departure time of the FDH under the Advanced Contract Renewal Arrangement.

Q. 28:
Could the employer ask his/her FDH to work while waiting for the issue of the employment visa?
A. 28: The Employees' Compensation Ordinance (Cap. 282) lays down the rights and obligations of employers and employees in respect of injuries or death caused by accidents arising out of and in the course of employment. The Ordinance also stipulates that no employer shall employ any employee in any employment unless there is in force in relation to such employee a policy of insurance to cover the employer's liabilities both under the Ordinance and at common law.
Insofar as the employment of FDHs is concerned, the employee's compensation insurance policy is valid only during the employment period (i.e. during the validity period of the employment visa of the FDHs concerned). Besides, unless there are other additional terms, these insurance policies would usually cover the injuries or death suffered by an employee arising out of and in the course of employment only. So, if the FDH has yet been granted a valid employment visa, the employer should not ask his/her FDH to work while waiting for the issue of the employment visa, or else he/she may commit an offence of employing a person who is not lawfully employable. If the FDH suffers injuries or death in the period, the employer may also have to shoulder the civil liabilities of making compensation in huge sum.

(ii)

Signing of written undertaking
Q. 29: Why are employers who wish to have advanced contract renewal with their FDHs required to sign a written undertaking?
A. 29: Some employers who wish to seek the suspension of levy as soon as possible may choose to terminate their existing contracts with their FDHs. When the levy suspension period is coming to an end, some employers may also choose to advance the renewal of employment contracts with their FDHs. To ensure that the entitlements of FDHs reckoned on the basis of their duration of employment will not be reduced due to the breaking of the continuity of their service in the event that the new contract fails to commence immediately after the termination of the existing contract, employers who wish to apply to the Immigration Department for advanced contract renewal has to sign a specified written undertaking to confirm the termination of the existing contract and the effective date of termination, and to commit on the continuity of employment relationship under the new and the old contracts. In so doing, FDHs will be assured that their existing and future entitlements under the Employment Ordinance and their employment contracts will not be affected by the advanced contract renewal.
Q. 30: What additional liability will be placed on the employer after having signed the undertaking?
A. 30:
The sole purpose of signing the undertaking is to ensure that the years of service of the helper will not be affected or curtailed by the advanced contract renewal. After having signed the undertaking, the employer is not required to take up extra responsibilities apart from those stipulated under the Employment Ordinance and the helper's employment contract.
Q. 31:
What does "the existing and future entitlements" under the Employment Ordinance refer to?
A. 31:
"The existing and future entitlements" under the Employment Ordinance refer to an employee's statutory entitlements under the said Ordinance. It includes employment benefits linked to an employee's years of service under a continuous contract such as long service payment, severance payment, paid annual leave and paid sick leave etc.
 

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