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Does a Hong Kong company need compensation if it wants to lay off a local employee in Hong Kong?

Released Date: Sep 21,2022 Article Source: HUANZE

According to the relevant provisions of the Employment Ordinance of Hong Kong, either the employee or the employer shall give the other party appropriate notice period or payment in lieu of payment if either party proposes to terminate the contract. There are two cases.

According to the relevant provisions of the Employment Ordinance of Hong Kong, either the employee or the employer shall give the other party appropriate notice period or payment in lieu of payment if either party proposes to terminate the contract. There are two cases:

1The employment contract clearly stipulates a notice period

If either party intends to terminate the Contract, it shall notify the other party in advance in accordance with the notice period stipulated herein, but the notice period stipulated herein is less than that stipulated herein7Days, the notice period is7God.

2The employment contract does not specify a notice period

Either party shall terminate the contract at least in advance1Notify each other in a month.

If the contract is terminated without prior notice in accordance with the above notice period, the breaching party shall be liable for compensation, namely, payment of the Tongjin.

There are two kinds of daytonkin calculation:

1, the notice period is in days or weeks

detonkin=Prior to the date of notice of termination12The average daily wage of an employee in a month×The number of days of the notice period

2The notice period shall be measured in months

detonkin=Prior to the date of notice of termination12The average monthly wage of an employee in a month×The number of months of the notice period

The company is not liable for compensation if the employee leaves voluntarily.

Does a Hong Kong company need compensation if it wants to lay off a local employee in Hong Kong?

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