Termination of Foreign Domestic Helper Contracts with Salary & Insurance Arrangements
Dealing with the termination of a Foreign Domestic Helper(FDH) contract in Hong Kong is not as straightforward as hiring one. Employers must adhere to various regulations outlined in the "Standard Employment Contract." Below, we outline the scenarios for terminating a FDH contract, and its salary and insurance arrangements.
Under what circumstances can a Foreign Domestic Helper's contract be terminated?
According to Article 10 of the Standard Employment Contract:
1. Termination by Employer: Requires one month's written notice or payment of one month's wages in lieu of notice.
2. Termination by Foreign Domestic Helper: Similarly requires one month's written notice or payment of one month's wages in lieu of notice.
3. Immediate Termination in Special Cases: No notice period or payment of wages is required in cases such as when the FDH unreasonably refuses lawful and reasonable orders; engages in improper conduct contrary to the principles of honesty and faithfulness; commits fraud or dishonesty; or habitually neglects duties. Employers must issue repeated warnings before resorting to immediate termination.
Sample termination notice issued by the employer (provided by the Labour Department) :https://www.eaa.labour.gov.hk/_res/doc/appendix8b_eng.docx；
Termination notice sample issued by the Foreign Domestic Helper (provided by the Labour Department): https://www.eaa.labour.gov.hk/_res/doc/appendix8a_eng.docx
Arrangements after terminating the contract with a Foreign Domestic Helper
1. Report to the Immigration Department: According to Article 12 of the Standard Employment Contract, both employers and FDHs are required to notify the Immigration Department in writing within seven days after the contract's termination.
Download the "Termination of Foreign Domestic Helper's Employment Contract Notice" (ID 407E) from the Immigration Department: https://www.immd.gov.hk/pdforms/id407e.pdf
2. Fulfill Financial Responsibilities under the Contract: According to Chapter 57 of the Employment Ordinance, employers must settle all related costs, including salary, payment in lieu of notice, annual leave pay, long service payment, severance pay, food allowance, travel allowance, and other allowances, within seven days after the contract's completion or termination.
3. Insurance for Foreign Domestic Helpers: Employers need to contact the insurance company immediately upon the FDH’s departure. If the insurance contract has not expired, most insurance companies allow the contract to be transferred to the next FDH. However, please note that most insurance companies do not extend the contract period. Hence, employers might need to renew the policy or purchase a new one before the existing contract expires to avoid legal issues in the future. If employers decide not to hire a new FDH, they can request a refund from the insurance company. The refund is usually made on a pro-rata basis, but most insurance companies have a minimum gross premium clause, meaning a full refund might not be possible. For details, please inquire with individual insurance companies.
Conclusion:
A smooth contract completion is ideal for both employers and FDHs, allowing for an amicable parting. Terminating a contract is usually a result of unpleasant circumstances, affecting both parties emotionally. It's crucial to adhere to the regulations mentioned above and fulfill all responsibilities to avoid legal disputes, saving time and effort for everyone involved.
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The information provided in this article is for general reference only and should not be considered as any form of advice. Our company assumes no responsibility for its use
