Useful Information
Severance and Long Service Payment
Details of terms for severance and long service payments are set out in the following table:
| Terms | Severance Payment | Long Service Payment |
Period of employment |
Not less than 24 months under a continuous contract |
Not less than 5 years under a continuous contract |
Qualifying requirements |
The employee is dismissed because of redundancy |
The employee is dismissed, but not because of: |
Fixed-term employment contract expires without being renewed because of redundancy |
Fixed-term employment contract expires without renewal |
|
| The employee is laid off |
The employee dies |
|
The employee resigns due to ill health |
||
The employee aged >= 65 who resigns due to old age |
||
Calculation: |
● (Last month's salaries/wages x 2/3)* x reckonable years of service ● Any 18 days' wages* chosen out of the employee's last 30 normal working days x reckonable years of service * limited to $22,500 x 2/3 |
|
Mandatory provident fund |
Employer's contributions in the mandatory provident fund can be withdrawn for payment of severance and long service payment |
|
Maximum Amount
If the relevant date of termination of employment occurs on or after 1 October 2003 , the maximum amount of severance payment or long service payment is $390,000.