Salary and Severance/Long Service



ORIGINAL POST
Posted by chanel2007 16 yrs ago
Need some information:


If I pay my helpers MORE than the minimum, how is the long service payment calculated? Is it based on the minimum salary, or based on the present salary?


Severance Payment- just read about it. I never knew any one who worked more than 24 months with the employer needs to pay severance payment? How come all the people I know who signed 2nd contract with DH never pays this when they don't renew with DH for 3rd. Everyone just talks about NOT renewing for the 3rd because they don't want to pay long service.


Long Service: If my helper is hitting her 5 year the end of this year, does it mean I don't have to pay long service if she leaves BEFORE the 5th year mark? Some people told me the moment you SIGN the 3rd contract, you owe Long Service to your DH.


Also, as the annual leave days increases each year of service, how does one calculate in $$$ if she didn't take all the annual leave she deserves ? Once again, is it pro-rata by minimum salary, or current stated salary?


What if helper qualify for LS payment, but she resigns. That means I don't have to pay it?


I presume she won't, but would it be possible she FORCES me to terminate her by being "impossible" and does really bad things to make me terminate her so she gets the Long Service?


And after Long Service Payment, do I still have to pay 1 month notice?


Sorry for all these questions, thanks for any info.

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COMMENTS
neenib 16 yrs ago
I suggest you either visit the website http://www.immd.gov.hk/ehtml/faq_fdh.htm or contact Immigration directly. They will be best able to answer these sort of technical questions.

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chanel2007 16 yrs ago
I already looked at that website, that's why I posted this because it doesn't say any of this detail. So if anyone had dealt with Long service payment, would like to hear their experience.


Thanks!

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cd 16 yrs ago
If they resign you still need to pay long service pay, they have to have worked for 5 years to qualify for this. It is calculated on the salary stated on her contract not on the minimum wage. The annual leave is again calculated by the salary stated on the contract not the minimum.

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hkwatcher 16 yrs ago
Long Service Payment

Qualifying period of employment


not less than 5 years under a continuous contract


(Long sevice and annual leave are not connected)


Amount of Severance Payment/ Long Service Payment

The following formula applies to the calculation of both severance payment and long service payment :

Monthly-paid employee(last month wages x2/3)*X reckonable years of service

reckonable years of service


http://www.labour.gov.hk/eng/public/wcp/ConciseGuide/10.pdf

So this is whatever you pay now times 2/3 then x the number of years she worked for you past 5 years


Service of an incomplete year should be calculated on a pro rata basis.

* the sum should not exceed 2/3 of $22,500. An employee may also elect to use his average wages in the last 12 months for the calculation.


Hope this helps. The reason why many do not sign for a third contract is that at the 5 year mark LS kicks in. Many girls are willing to compromise this amount in order to keep their jobs. In other words, you can negotiate, jsut get it in writing!

Cheers

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Moppet 16 yrs ago
As neenib said you are better to ring the immigration department to find this out as you can never be certain of the info you recive on a forum.

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chanel2007 16 yrs ago
thanks everyone.



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Miggy 16 yrs ago
When my helper resigned, I called the Immigrations dept and asked about LSP because my helper was a few months short of being with us for 5 years. The immigrations officer said that even if she has stayed with us for not less than 5 years, we are not obligated to pay the LSP because she resigned/terminated her contract. We did not initiate the termination of her contract.

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chanel2007 16 yrs ago
Miggy, thank you for your info. That's what I was told. If the helper RESIGNS, then I don't have to pay her the LSP or LS. If I terminate the contract, or not renew with her, then I have to pay it. But some people said here no matter what you have to pay it even if she resigns. I think that's not correct.


Also, Miggy, just on the side, how difficult was it to adjust and find a new helper after having someone in your household that long? Is it possible to part in good terms? I am so distressed about it, I am disappointed too that our relationship may have to end on this tone.


my kids will miss her dearly.


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Miggy 16 yrs ago
Hi chanel2007, yes, it was and is difficult since our ex helper stayed with us close to 5 years. My son underwent a separation anxiety (if that's what it's called :)). He's fine now. I'm sure he's not totally ok but he's givng the new one a chance. He asks about the old one but understands why she has to be away. My old one will come visit from time to time to reassure him that he was not rejected. She just needs more time for her own family but still loves and cares about him.


So yes, I still maintain good relations with my ex helper... and yes, it's possible. I did not take her resignation against her because she did very well with my son and I know that my son loves her dearly.


Of course, I get to compare the new one with the old one... though I know it's unfair so I just keep it to myself. But, the new one has her own strengths.. like she used to be an assistant pre-school teacher so she gets to teach my son school things. She has more common sense and logic. The old one on the other hand really loves my son as if he were her own. She puts him above all other duties... and that was a plus because I would always be on business trips so need not worry if he's well taken care of. Believe it or not, when we scold my son, she cries!


The new one is still adjusting but there's nothing serious to complain about. I'm still giving her time to know us, follow our house rules, our own standards of good manners and right conduct, etc.

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