long service pay

[hkmama1]

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

 

[rani]

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

 

[momofthree]

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?

 

[Ragless]

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.