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  10. SECTION 8: Termination of Employment

SECTION 8: Termination of Employment

Termination by Notice

Either the employer or employee can end the employment contract by giving proper notice or paying wages in place of notice, as outlined in the contract

  • The notice period and pay for resigning are in the employment contract. Not giving proper notice means losing unused Paid Annual Leave.
  • SP can accept a resignation immediately or for an earlier date, paying until the last working day.
  • Before the final paycheck, all SP property must be returned, and any outstanding amounts settled.

Termination Without Notice or Payment

SP may dismiss an employee without notice or payment if the employee:

  1. Willfully disobeys a lawful order.
  2. Engages in misconduct.
  3. Is guilty of fraud or dishonesty.
  4. Is habitually neglectful in their duties.

An employee can terminate their contract without notice if:

  1. They reasonably fear danger from violence or disease.
  2. They are mistreated by the employer.

Termination Payments

When an employee is let go, all termination payments will be made in accordance with the relevant employment contracts and HK laws and regulations.

Timing of Termination Payments

SP will make every effort to pay termination payments (except for severance payments) as soon as possible, and no later than seven days after the termination date.

Severance will be paid within two months of the employee’s written claim.

Exit Interview

HR will conduct an exit interview with each departing employee to collect SP property and gather any feedback or suggestions the employee may have.

Severance and Long Service Payment

Severance or long service payments are covered by the Employment Ordinance. An employee is eligible for severance payment or long service payment subject to the following conditions:

* If not less than 7 days before the date of dismissal / expiry of the fixed term contract in case of severance payment, and not less than 7 days before the expiry of the fixed term contract in case of long service payment, the employer has offered in writing to renew the contract of employment or re-engage him under a new contract but the employee has unreasonably refused the offer, the employee is not eligible for the entitlements.

NOTE: An employee will not be simultaneously entitled to both long service payment and severance payment.

** For employees who worked for the Hong Kong Korean Church Limited before January 1, 2011, their service time with that organization will count towards their severance or long service payment.

Calculation of Severance/Long Service Payment

The formula for calculating severance or long service payment is:

For incomplete years, payment is calculated on a pro-rata basis. The capped wage amount used in the formula is HKD 15,000 (or 2/3 of the employee’s last full month’s wages, whichever is less). Employees can also choose to use their average wages over the last 12 months for the calculation. The maximum total severance payment is HKD 390,000.

Claiming Severance Payment

Employees must submit a written claim for severance payment within three months after dismissal or layoff. This deadline can be extended with approval from the Commissioner for Labour. SP will strive to make the payment within two months of receiving the claim.

Long Service Payment

Long service payment will be made to the employee within 7 days after the termination date.