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Key points to consider upon termination of contract

According to the Standard Employment Contract, both the employer and the domestic helper have the right to terminate the contract by giving one month’s notice or paying one month’s salary in lieu of notice. Notice of Termination of a domestic helper must be submitted to the Immigration Department within seven days.

For more clarification on termination entitlements, please see the Foreign Domestic Helper Guide from the Labour Department or contact your local Labour Relations Division.

Click here for the standard release letter issued by the Hong Kong Immigration Department.

Click here for the standard  Notification of Termination of Employment letter issued by the Hong Kong Immigration Department.

By Mail Foreign Domestic Helpers Section, Immigration Department, 3/F, Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong.
In-Person Receipt and Despatch Unit, Immigration Department, 2/F, Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong.
By Fax 2157 9181
Enquiries 2824 6111

Employers are also responsible for the following termination entitlements:

  • Outstanding wages
  • Wages instead of notice
  • Any earned but unused annual leave
  • Any untaken statutory holidays
  • Long Service Pay (where appropriate)
  • Severance Pay (where appropriate)
  • Transport to place of origin
  • Travel and Food Allowance

TIP: You can download the FAIR Hong Kong app to use the in-app Termination Payment Calculator to assist you.

Outstanding Wages

Ensure that any outstanding wages are paid together with the termination entitlements of the worker.

Wages instead of Notice

If the domestic helper is not given a written one month’s notice of termination, you are required to pay one month’s wages instead of notice. If, on the other hand, the worker fails to give you one month’s notice, she will owe you one month’s wages instead of notice.

Annual Leave & Statutory Holidays

Any earned but unused annual leave and Statutory Holidays must be paid as part of the termination entitlements.

Long Service Pay

You will need to pay Long Service to the worker if the worker has worked for you for no less than 5 years under a continuous contract and if:

  • The worker is not summarily dismissed due to bad conduct
  • The contract is not renewed due to other reason than bad conduct
  • The worker is certified as permanently unfit to work and resigns
  • The worker dies
  • The worker is not dismissed because of redundancy

TIP: Long Service Payment is calculated with the following formula:

(Monthly Wages x 2/3) x Years of Service

(Service of a non-completed full year is calculated on a pro-rata basis)

Severance Pay

Your worker is entitled to Severance Pay if:

  • The worker has worked for you for no less than 24 months under a continuous contract
  • The worker is dismissed because of redundancy
  • The contract is not renewed because of redundancy

NOTE: A worker can only be entitled to either Long Service or Severance Payment. If the worker is dismissed because of redundancy, they are entitled to Severance Payment, but no Long Service Payment.

 TIP: Severance Payment is calculated with the following formula:

(Monthly Wages x 2/3) x Years of Service

(Service of a non-completed full year is calculated on a pro-rata basis) 

Transport to place of Origin

The employer is required to provide free passage to the worker’s place of origin, which is the address listed on the front page of the contract. This includes not only air travel but also any train, bus, car, etc., transport necessary.

Food and Travel Allowance

A food and travel allowance of HK$100 must be paid per day of travel.

TIP: You can download the FAIR Hong Kong app to use the in-app Termination Payment Calculator to assist you.

 

Other reminders:

Does anything need to be signed? 

Both the employer and the helper should sign a receipt confirming all payments made upon termination and both should keep a copy of the receipt.

Should a reference letter be provided?

Employers are not obligated to provide a reference letter. However, if you’ve had a good experience with your worker, a nice reference letter could greatly assist her/him in finding another job. If you do not feel like your worker deserves a good reference letter, you should feel no obligation to give her/him one.

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Last updated on August 15th, 2019
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