Posted by
maz27
12 yrs ago
My helper who joined us in August 2006 and renewed her contact with us in August 2012. She has told us she needs to leave to help run a family business and I know this is totally genuine. She is terminating her contact on 21st December. What if any long service bonus is she due?
My husband seems to be reading the rules of this differently to me. Can someone please enlighten me?
Thanks in advance.
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If your helper has been with you over 5 years which she seems to have been, then I think she is due for long term payment, I presume she has given you notice and will be working till the end of her notice period.
I am not sure how the payment is worked out, but I have found HK labour dept Qs and As,
http://www.labour.gov.hk/eng/faq/cap57l_whole.htm#q5
Hope this helps.
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FIFIB
12 yrs ago
Not correct. After 6 years of service you have to pay her 2/3 of her monthly salary (x) the number of years she worked for you.
Eg $3800 monthly salary
2/3 =$2533 (x) 6 years = $15200
Also you have to pay any untaken holidays
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FIFIB
12 yrs ago
Not correct. After 6 years of service you have to pay her 2/3 of her monthly salary (x) the number of years she worked for you.
Eg $3800 monthly salary
2/3 =$2533 (x) 6 years = $15200
Also you have to pay any untaken holidays
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Agree with FIFIB. It doesn't matter who terminated, you still have to pay long service.
It is 2/3rd of her CURRENT monthly salary (the most current contract both of you have signed). If you paid her above the standard stipulated in the contract, then I would use the higher one, just to show your appreciation for her service with you.
In regards to untaken holidays, you could let her leave earlier to make up for it.
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maz27
12 yrs ago
Thanks I've read all that on the web but still find it doesn't really make it clear as shows with all the different replies I've had both here and by private message. I'll phone them tomorrow to see what they say.
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FIFIB
12 yrs ago
If the helper works less than 6 years and she is the one that decides to terminate the contract you don't have to pay her LTS.
However after the 5th year of service if the employer is the one that decides to terminate the contract then you have to pay it.
My helper worked for us 6.5 years she is the one that decided to terminate her contract, she wanted to go back home to take 7 month's rest.
This was last Oct 15th, We ended up paying her almost 25K between the years of service 21 days untaken holidays and airplane ticket.
Seems to much but in fact if we make the numbers is like if you had pay your good helper $300 more a month.
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FIFIB
12 yrs ago
If the helper finished 3 full contracts she is entitled to LTS even if she doesn't want to renew a 4th contract
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maz27, I would be interested to hear immigration's reply to the above because I'm more confused than ever now too ;-)
You've had your helper from Aug 2006-Aug2012. That's a period of 6 years. I thought that LSL is payable even if you've started another contract since Aug 2012 .....and either you or her terminated this new contract would not matter? As in FIFIB's case, it didn't matter also that it was the helper who terminated the contract instead of her. FIFIB still had to pay her for the 6 years. The next question is, if in fact you need to pay LSL, you may need to find out at what monthly salary you should go by (based on which contract)?
I would go by the latest so that she doesn't feel that she's been ripped off in any way... sometimes the employee (helper or not) think very differently to employers, being at the receiving end.
I think LSL is actually very reasonable here. If helpers don't work out, you pay even more from terminated payouts, airfares, agent fees and medical checkups.
Do update us when you know more.
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FIFIB
12 yrs ago
Cara,
The helper is entitled to long term service after completing 6 years contract never minding who's decision was not to sign another contract.
Like I said my helper worked for me 6.5 years. I in fact begged her to sign the 4th contract I wanted her to be present for my 5 y/o birthday boy and my daughter's BD
If she had told me no, I still had to pay her LTS for the 6 years and that based on the salary from her last contract.
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FIFIB
12 yrs ago
By the way the OP has the helper for 6.4 years so she needs to pay
My hairstylist has the same helper for more than 20 years
Are you guys saying that if the helper quits or decides not to renew she would walk empty handed?
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FIFIB
12 yrs ago
Don't listen to me I am wrong,
If the helper quits or decides not to renew she is not entitled.
My previous helper in whom I trusted solely
She went to the Phillipines consulate and brought me s document prepared by them
showing me the calculation
In fact it was my helper's request to give her the long term service at the end of the 3rd contract not until she was leaving.
If I did not agree to it she was not going to renew.
I feel like an idiot for trusting her
I should have done my own research !!!!
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FIFIB
12 yrs ago
I called the agency confirmed I am an idiot I was not supposed to give her anything
Your helper is resigning dont pay her anything
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Oh my goodness! That is a little unfair for the helpers.
So if at anytime a helper decides not to renew, she gets nothing?
Why should a helper be loyal to an employer then?
So if I were a good helper, I think I would demand a higher salary increase then.
I would rather pay LSL to a good helper than airfares to dismiss bad ones....
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That is so wrong! So basically, if you have a helper who works for you for many years say, until retirement age, she's not entitled to anything unless the employer terminates her contract or decides not to renew? So if she reaches the ripe old age of 60/65 whilst employed, is in good health, but wants to retire, she's not actually entitled to receive her long service payment if she's the one who says she's doesn't wish to renew her contract?? If that's the case, it's outrageous!
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strawblade is right....you don't have to follow this policy which I think is very tricky when one or the other wants to end the contract due to various reasons and create unnecessary 'scenes'.
Our helper needed some money when she was with us 4 years and we gave her 4 years of LSP asking her not to lend from outside and another 2 years of LSP when she reaches her 6th year with us. Now she has entered her 9th year with us. She knows we treat her fair & well and there will be no tricks when eventually the time comes that we will part as employer/employee which I hope will be a long time away.
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Strawblade/homely, I personally would give my helper LSP whether she had been with me for only 5 years, or 35 years, whether or not she was entitled to it ... but it's a sad fact that there are many employers out there who wouldn't (unless they legally have to), and who deliberately do there hardest to give to the helper the least amount of money possible!
cara, thanks for clearing that up .. I'm glad to see that retiring due to old age does legally entitle helpers to LSP. I still find it quite shocking though that a helper who has worked for someone for a number of years isn't entitled to it if they decide not to renew their contract, and there are many employers who wouldn't give it to them due to that fact ....
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Strawblade, I an in agreement with Sapphire. If I've renewed my helper's contract for the second time and third contract, it means she has been a godsent to my family. She will not leave empty handed, whether it's because she has family business to take care of or whether she finds it too long already and wants a change of employment. I'm not on an expatriate package but this is money worth paying for a helper who has, over the years, treated my family like her own. We are still in contact with the helper who's been with us for 4 years. She's loved our kids as her own and each time we meet her, we give money to her generously. She's left but I'm still thankful for her sacrifices and dedication to our family especially her love for the kids.
Homely, good on you. Old age or not, after years of being with an employer, I just can't see how an employer would let the helper go without something equivalent to LSP (being the minimum) or something more. For a helper, it doesn't pay to be loyal then coz you get nothing for it at the end.
Cara, thanks for the clarification. But not very many will keep a helper until retirement when there are younger ones to choose. And if a helper is a keeper until retirement, it means she's had to work real hard until then.
I hope there are more employers out there who think it is unfair.
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