Termination of

Employment Contract

Either party may terminate the contract by giving 1 month’s notice in writing or 1 month’s wages in lieu of notice to

the other party.

 

For more information on the Ordinance on Termination of Employment, please refer to the

"Guide to Employment of Foreign Domestic Helpers" issued by the Labour Department.

The  below information is provided by Labour Department

Can an employer or a helper terminate the employment contract before it completes?


Yes. Either party may terminate the contract by giving 1 months’ notice in writing or 1 month’s wages in lieu of notice to the other party.




What should I do upon termination or completion of the employment contract?


For employer -You should clear all outstanding wages and other sums due to your helper, preferably by payment through the bank, and obtain a receipt for all payments. -You are required to notify the Foreign Domestic Helpers Section of the Immigration Department in writing of the termination within 7 days of the date of termination. It is not necessary to inform the Labour Department. For helper -You should settle all payments with your employer and ensure that all sums are paid to you before you sign any receipt. -You are required to notify the Foreign Domestic Helpers Section of the Immigration Department in writing of the termination within 7 days of the date of termination. It is not necessary to inform the Labour Department.




Can an employer or a helper terminate the contract without notice or payment in lieu of notice?


Termination without notice or payment in lieu of notice is allowed only under special circumstances. For employer You may summarily dismiss your helper without notice or payment in lieu of notice if your helper, in relation to the employment : -wilfully disobeys a lawful and reasonable order; -misconducts himself/herself; -is guilty of fraud or dishonesty; -or is habitually neglectful in his/her duties. For helper You may terminate your employment contract without notice or payment in lieu of notice if : -you reasonably fear physical danger by violence or disease; -you are subjected to ill-treatment by your employer; -or you have been employed for not less than 5 years and you are certified by a registered medical practitioner or a registered Chinese medicine practitioner as being permanently unfit for the present job.




What should I bear in mind when considering termination of the contract without notice?


-Termination of employment without notice is usually preceded by disagreement between the employer and the helper. In the midst of heated arguments, things may be blown out of proportions and either party may there and then believe that it is justified for him/her to terminate the contract or to consider that it has been terminated. This often turns out to be ill-conceived. As independent witnesses are not usually available in a domestic environment, it will be difficult to re-construct the circumstances leading to the dispute and decide whether the action taken is justified. -The best way to solve problems arising from employment is for the parties to talk things out. Try to be considerate and tolerant with each other in sorting out your differences. Most problems can be resolved without resorting to drastic actions. -Termination of employment without notice should be considered only under very special circumstances. If you really have to do so, you should make sure that you have sufficient evidence to back up your case. Otherwise, you will likely face a claim from the other party.




Upon termination or completion of the contract, what items of payment should I pay to my helper?


The items and amount payable to your helper on termination or completion of the contract depend on a number of factors such as the length of service and the reason for termination of contract. However, termination payments usually 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. See Chapter 4; -where appropriate, long service payment or severance payment. See Chapter 9; -any other sum due to the helper in respect of the employment contract, e.g. free return passage and food and travelling allowance. See Chapter 11. It is advisable to keep the receipts for such payments. A sample of the receipt for payments is at Appendix V.





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