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Employment Contract

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  1. #1

    Employment Contract

    Hi all,
    I have been made an offer to work in HK for a business consulting firm. Super excited but just got a few questions on terms of the employment contract.
    1.The company is paying for relocation but I have to stay with them for 2 years as if I leave within 2 years, I will have to pay the relocation cost back. 2 years seem to be a long period as I relocated to other countries before and typically the period is 1 year.
    2.Bonus is paid 6 month after the end of financial year. Again the period seems to be a long as typically other company I worked for in the same industry pays bonus 2 – 3 months after the end of the year.
    3.There is no mention of sick leave entitlements. I did some research and it seems that in HK you accrual 2 days per month for the first year and 4 days per month after the first year to a max of 120 days. Can somebody please confirm – this seems to be generous. I will check with the company on this.
    4.There is no mention about redundancy payment. Typically in HK if you have been made redundant by your employer, what are your entitlements (e.g. 1 month salary per years of service)? I will also check with the company on this.
    Cheers

  2. #2

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    Here's an FAQ from the Labour Department's website on Severance and Long Service Payments: Severance Payment and Long Service Payment

    And on Sick Leave: Sick Leave

    Should cover most things.

    Regarding the relocation cost and bonus payment, each company can do what it wants. It's up to you to negotiate if you feel it's worth it.


  3. #3

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    Read the severance information carefully. If you do, you will note that the company can claw back a large portion of it from your MPF (pension) fund. Thus a conservative rule of thumb is that severance is pretty much zero in HK.
    Also read the sick leave carefully. Sometimes you actually have to be sick MORE than a number of days before you can claim! It's a weird system here.
    However, both sick leave and severance sometimes companies have their own schemes - so worth asking as well as reading the stat minimums.
    Re bonus ... I would read your contract carefully re bonuses. Sometimes they are certain, often they depend on performance or (worse) company performance. So when it gets paid is less important than IF it gets paid!!!! My firm didn't pay anything at all last year because of the downturn

    wtbhotia and drumbrake like this.

  4. #4

    I got injured on site. I submitted all my sickleaves to my company on time. My salary day is 7th of each month but I have not yet received my sick leave pay. According to labour department, the employee should pay the sick leave on salary day and not late then 7days after the pay day
    Otherwise inabsence of genuine reason, employee are liable to 100000$ fine. I contacted my employee several time in person and by phone many times but I always get the same answer "we will call you after checking" and no calls comes. I complained to labour department and my case officer also gave me the same reply but till to date no result. I am in real trouble as you know about the hongkong expensive living. I am in pain and that pain is starting to turn into anger giving me nightmares. Any kind soul out there for any suggestion that i should take. Thanx

    Sent from my GT-I9505 using GeoClicks mobile app


  5. #5

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    Quote Originally Posted by Sagafakir:
    I got injured on site. I submitted all my sickleaves to my company on time. My salary day is 7th of each month but I have not yet received my sick leave pay. According to labour department, the employee should pay the sick leave on salary day and not late then 7days after the pay day
    Otherwise inabsence of genuine reason, employee are liable to 100000$ fine. I contacted my employee several time in person and by phone many times but I always get the same answer "we will call you after checking" and no calls comes. I complained to labour department and my case officer also gave me the same reply but till to date no result. I am in real trouble as you know about the hongkong expensive living. I am in pain and that pain is starting to turn into anger giving me nightmares. Any kind soul out there for any suggestion that i should take. Thanx

    Sent from my GT-I9505 using GeoClicks mobile app
    Whose fault was the injury? If yours, I would just leave HK and not look back - you will be lucky to see a cent. If your company, try suing them.

  6. #6

    Thanks all, will definitely read carefully on all the terms and conditions

    Regarding to pension, I have been told by the company that I am not eligible for MPF as I have got an overseas pension scheme. My company also does not provide ORSO.

    My question is, can I close down my oversea's scheme and transfer the balance into a HK MPF scheme and if that is the case, I presume my company has to pay for MPF for me?

    Feels a bit weird for not contributing to a pension fund while working....


  7. #7

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    My understanding is that you are only exempt from MPF if you are contributing to a scheme currently. Your employer is misstating that to save themselves HK$1250 per month.

    Last edited by Gruntfuttock; 19-12-2013 at 11:54 AM.

  8. #8

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    You pay half the MPF amount and your employer pays the other half. It's not very much ($1250 max pm each) and you don't really have much of a say where it's invested (depends on the scheme, which the employer still chooses). Better of putting your money in your overseas scheme.


  9. #9

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    Original Post Deleted
    I disagree, unless you are getting the $1250 paid in some other way. All other things being equal it seems like locking up $1250 per month of your own money, even at zero return, is worth it to get $1250 more net income.

  10. #10

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    They can claw back some severance pay in some circumstances if they wish. But I was made (formally) redundant here twice, and in neither case did my employer feel it would be appropriate to do that. So I guess it just depends on how well you pick your employers.

    chris_yang22 likes this.

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