C K Yau & Partners CPA Limited

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: - serious misconduct; or - redundancy
	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: - monthly-paid employee - daily/piece rated employee	(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Mandatory provident fund	Employer's contributions in the mandatory provident fund can be withdrawn for payment of severance and long service payment

Important Briefing / Severance and Long Service Payment