No renewal of contract, entitled to severance pay?



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ORIGINAL POST

Posted by Bensai 16 mths ago
Hello all,
 
Probably a regular question.
The contract with our FDH is coming to an end and we will not renew (We already signed with another person).
Is she entitled to severance pay?
 
Thanks a lot,
 
Regards,
 
Ben
 
 
ED's NOTE:  you can find information on this on the HK Labour Department Website:
 
 
Q5:
Under what circumstances should an employer pay severance payment or long service payment to his/her FDH if he/she terminates the FDH's contract?
 
 
 
A5:

 

An employer should pay severance payment to his/her FDH if the FDH has been employed continuously for not less than 24 months and is dismissed (or his/her contract is not renewed) by reason of redundancy.

An employer should pay long service payment to his/her FDH if the FDH has been employed continuously for not less than 5 years and is dismissed (or his/her contract is not renewed) by reason other than serious misconduct of the FDH or redundancy.

However, an employer is not required to pay both long service payment and severance payment to the FDH.

 
 
 
Q6:
How to calculate the amount of severance payment and long service payment payable to the FDH?
 
 
A6:

Severance payment and long service payment are calculated as follows :

(monthly wages x 2/3) x reckonable years of services*

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

 
 

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