Frequently Asked Questions

Frequently Asked Questions about
The Employment Ordinance, Cap. 57

Q1.	What is the required length of notice, or the amount of payment for wages in lieu of notice, for termination of an employment contract?
A1.	In the case of a continuous contract of employment, the length of notice or the amount of wages in lieu of notice required are: Table 1   Length of notice Wages in lieu of notice During Probation Period within the first month of probation not required not required after the first month of probation With agreement to the length of notice as per agreement, but not less than 7 days   Table 2 without agreement to the length of notice not less than 7 days notice   Table 2 No / after probation period with agreement to the length of notice as per agreement, but not less than 7 days   Table 2 without agreement to the length of notice not less than 1 month   Table 2 Table 2     Notice period expressed in days or weeks                 Average daily wages earned by an employee in the 12-month period before the day when a notice of termination of contract is given* X Number of days in the notice period for which wages would normally be payable to the employee = Wages in lieu of notice         Notice period expressed in months     Average monthly wages earned by an employee in the 12-month period before the day when a notice of termination of contract is given* X Number of months specified in the notice period = Wages in lieu of notice                 * In calculating the average daily wages, an employer has to exclude (i) the periods for which an employee is not paid his wages or full wages, including rest day, statutory holiday, annual leave, sickness day, maternity leave, sick leave due to work injuries or leave taken with the agreement of the employer, and any normal working day on which the employee is not provided by the employer with work; together with (ii) the sum paid to the employee for such periods
Q2.	Is there any situation whereby an employer or an employee can terminate a contract of service without notice or payment of wages in lieu of notice?
A2.	Yes. An employer may summarily dismiss an employee without notice or payment of wages in lieu of notice if the employee, in relation to his employment, - (a) wilfully disobeys a lawful and reasonable order; (b) misconducts himself; (c) is guilty of fraud or dishonesty; or (d) is habitually neglectful in his duties. Employers should note that summary dismissal is a serious disciplinary action. It only applies to cases where an employee has committed very serious misconduct or fails to improve after the employer's repeated warnings. An employee may terminate his employment contract without notice or payment of wages in lieu of notice if - (a) he reasonably fears physical danger by violence or disease; (b) he is subjected to ill-treatment by the employer; or (c) he has been employed for not less than 5 years and he is certified by a registered medical practitioner as being permanently unfit for the type of work he is engaged.