【Employer FAQ】Termination of Employment Contract
1.Can an employer or a helper terminate the employment contract before it completes?
Yes. 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. Sample Letter of Termination of Employment Contract initiated by Foreign Domestic Helper (FDH) or initiated by the Employer is at Appendix IVa and Appendix IVb.
2. What should I do upon termination or completion of the employment contract?
For employer For helper You should clear all outstanding wages You should settle all payments with your
and other sums due to your helper, employer and ensure that all sums are paid to
preferably by payment through the bank, you before you sign any receipt.
You are required to notify the Foreign You are required to notify the Foreign
Domestic Helpers Section of the Domestic Helpers Section of the
immigration Department in writing of the immigration Department in writing of the
termination within 7 days of the date of termination within 7 days of the date of termination.It is not necessary to inform termination.It is not necessary to inform
the Labour Department. the Labour Department.
3. 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 For helper
You may summarily dismiss your helper You may terminate your employment contract
without notice or payment in lieu of without notice or payment in lieu of notice if:
f notice if your helper, in relation you reasonably fear physical
to the employment: danger by violence or disease;
wilfully disobeys a lawful and reasonable order; you are subjected to ill-treatment
misconducts himself/herself; by your employer; or
s guilty of fraud or dishonesty; or. you have been employed for not less than
is habitually neglectful in his/her duties. 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.
4. 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. For employer For helper 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. 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. 26 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
5. What should I do if my helper leaves without giving me notice or payment in lieu of notice?
OR What should I do if my employer dismisses me without giving me notice or payment in lieu of notice?
You should notify the Foreign Domestic Helpers Section of the Immigration Department if you consider that the contract has been unilaterally terminated by the other party. For the employer, if you are unable to locate the whereabouts of the helper, you may also wish to report the case of missing helper to the Police. If you consider that the other party is not entitled to terminate the contract without notice and you wish to claim payment in lieu of notice, you should approach the branch office of the Labour Relations Division of the Labour Department without delay. This Division will help you settle your claim by conciliation. See Chapter 12. You may of course waive the requirement of proper notice from the other party.
6. 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.
Source: Practical Guide For Employment Of Foreign Domestic Helpers
