Posted by
notyou
15 yrs ago
I'd love if someone explained what it means because helprs say they're not rehired because of it.
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After 5 years continuous service with a single employer an FDH becomes entitled to Long Service Payment when they leave or are terminated. The Long Service Payment is calculated by: monthly salary x 2/3 x years of service.
It's normal locally not to renew contracts after the second contract has finished or to terminate just before the 5 years to avoid having to pay.
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788
15 yrs ago
Evildeeds, do you know if that amount would need to be paid out as a lump sum or not? Just curious. Since it is not a small sum of money- would be good to plan for it. Even with the base salary and say 6 years of service- the long service payment would come to over $15k.
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It would be paid in one sum once the helper leaves your employment. This is why there are many helpers who find themselves in the position mentioned by notyou.
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The real reason why there are many helpers who find themselves in this position is because there have been instances wherein as soon as the 5th year is finished, the helper becomes difficult giving the employer no choice but to terminate or the helper terminates the contract to immediately get the long service pay.
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Mike204, if it is the helper who terminates the contract or decides not to sign a new one (after at least 5 years of service), she's not entitled to the long service pay. That is why the helper becomes "difficult" so that the employer terminates the contract and thus she's paid the long service pay. After having said that, it's safe to say that it doesn't happen all the time.
It's the same reason why many employers don't re-hire their helpers after the 2nd contract (4 years of employment). It saves a lot of hassle, but also brings some problems of its own.
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btw, it has also been known that some employers become "difficult" when their employee becomes eligible for the long service pay. This is for the same reason: they want the FDH to terminate the contract so that the employer won't pay the Long Service Pay! Life is fun.
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Thanks. I didn't know all of that. Ugh! The complexities of hiring a DH in HK! I wish that Immigration didn't complicate things by having this. Perhaps it'd be easier if the minimum wage went up just a bit or if lsome money were put into a retirement fun or if the long service was just a bit more than a month's salary, maybe 6 weeks' salary. As it is, it sounds like it's like a retirement fund and other helpers don't have such a thing....
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notyou - this is not specific to helpers. It applies to all company employees. And it's not Immigration, it is the Labour Dept. Rules are all on their site.
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