An employee employed under a continuous contract for not less than 5 years is eligible for long service payment if:
- he is dismissed (except by reasons of redundancy or summary dismissal due to the employee’s serious misconduct);
- his fixed term employment contract expires without being renewed;
- he dies during employment;
- he has been issued a certificate in a specified form by a registered medical practitioner or a registered Chinese medicine practitioner, certifying that he is permanently unfit for his present job and he resigns; or
- he is aged 65 or above and resigns on the grounds of old age.
How much should be paid ?
| Monthly-paid employee | (Last month of wages x 2/3) × Reckonable years of service |
| Daily-rated/ piece-rated employee | (Any 18 days’ wages chosen by the employee out of the last 30 normal working days) × Reckonable years of service |
The maximum amount of payment is $390,000.
Long service payment should be paid to an employee as soon as possible and within 7 days after the date of termination of the employment contract.