What is long-service payment? Do I need to pay a long-service payment?

An employee employed under a continuous contract for not less than 5 years is eligible for long service payment if:

1. he is dismissed (except by reasons of redundancy or summary dismissal due to the employee’s serious misconduct);
2. his fixed term employment contract expires without being renewed;
3. he dies during employment;
4. 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
5. he is aged 65 or above and resigns on the grounds of old age.

How much should be paid ?‍

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.

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