Employment Archives - Page 5 of 7

Can MPF contribution be used to offset part of the severance payment/ long service payment payable to an employee on termination of the employment contract?

Yes, employers can offset MPF contributions. How to offset MPF contributions If severance payment/ long service payment has been paid: Employers may make an application with supporting documents to their trustees to withdraw the MPF derived from the employer’s contributions from the employee’s account.Employers may require their employees to acknowledge receipt of such payment in … Read more

What is long-service payment? Do I need to pay a long-service payment?

An employee employed under a continuous contract for not less than 5 years is eligible for long service payment if: he is dismissed (except by reasons of redundancy or summary dismissal due to the employee’s serious misconduct); his fixed term employment contract expires without being renewed; he dies during employment; he has been issued a … Read more

What is severance payment? Who is eligible for severance? How to calculate severance?

Severance payment is the compensation an employer provides to an employee if they have been dismissed due to redundancy or laid off, so only these employees are eligible for a severance payment. Redundancy An employee is dismissed due to redundancy if the dismissal is because: the employer closes or intends to close the business; the … Read more

What are the rights of an employee who is dismissed unreasonably/ unlawfully by the employer?

When a dispute arises, an employee should first approach their employer with a written notice of their claim within 3 months of the termination of employment. If they cannot settle the dispute, the employee may bring it to the Labour Tribunal within 9 months of terminating the employment. The Labour Tribunal may order: reinstatement or … Read more

What constitutes unreasonable/unlawful dismissal?

An employer cannot dismiss an employee whenever they want to, as there are circumstances where dismissal is unreasonable or unlawful. Unreasonable dismissal The Employment Ordinance states 5 valid reasons for dismissal or variation of the terms of an employment relate to: (a) the conduct of the employee; (b) the capability or qualification to perform work; … Read more

What are the employee’s entitlements on termination (termination payment)? When should they be paid?

Termination payments are paid usually when an employee’s employment contract is terminated. An employer may need to pay a termination payment, which may include: outstanding wages; payment in lieu of notice, if any; payment in lieu of any untaken annual leave, and any pro-rata annual leave pay for the current leave year; any outstanding sum … Read more

Can I terminate an employment contract without notice or payment in lieu of notice?

An employer can terminate an employee without notice by paying in lieu of notice, if they want the employee to be dismissed immediately. An employer can summarily dismiss an employee without notice or payment in lieu of notice if the employee had engage in the following circumstances: wilfully disobeys a lawful and reasonable order; misconducts … Read more

How can a contract of employment be terminated by notice? Does the termination notice need to be in writing? Do I need to mention the reason for termination in the notice for termination?

The party who requested for termination of an employment contract is required to give the other party due notice, either in writing or orally. Length of notice period The length of notice period will depend on whether the employee is employed in the continuous employment contract or in a probation period. Continuous employment contract Length … Read more

What are the ways in which a contract of employment can be terminated?

There are multiple ways an employment contract can be terminated, for example: by resignation constructive dismissal summary dismissal dismissal by the employer by mutual agreement the expiry of a fixed term Resignation An employee can resign from their employment by sending their employer a resignation letter. They must be aware of the notice period before … Read more

Can I hire foreigners?

Yes, you can hire foreigners who have a valid work visa. The Hong Kong government advises employers to give first preference to the local workforce for filling job vacancies, but foreigners who possess special skills, knowledge or experience are allowed to enter and stay in Hong Kong for employment as professionals. As an employer, you … Read more