1823 Frequently Asked Questions

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When terminating a contract of employment, the party who requested for termination is required to give the other party due notice or wages in lieu of notice. The length of notice period depends on situation, for employees employed under a continuous contract, the requirements on notice period and payment in lieu of notice are stated in the table below:

Employment Length of notice Payment 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    Please refer to 2. Calculation of Wages in Lieu of Notice   
Without agreement to the length of notice Not less than 7 days notice
No / After probation period With agreement to the length of notice As per agreement, but not less than 7 days
Without agreement to the length of notice Not less than 1 month


After confirming the number of days required for notice, please make reference to the materials below to find out when the employee will terminate his/her service, or the amount of wages in lieu of notice required -

1. How to calculate notice period

  1. If the notice period is calculated in terms of days, to avoid disputes, the day when notice of termination of employment contract is given may be excluded from the notice period.
  2. If the notice period is calculated in terms of months, the Employment Ordinance has stipulated that the day when notice of termination of employment contract is given should be included in the notice period. According to the Employment Ordinance, a “month” means a period of time commencing on the day when notice of termination of employment contract is given, and ending –
  • at the end of the day before the corresponding date in the following month (e.g. 13th February to 12th March);
  • where there is no corresponding date in the following month, at the end of the last day of the following month (e.g. 30th January to the last day of February); or
  • where the commencing day is the last day of a month, at the end of the last day of the following month (e.g. the last day of February to 31st March).


2. Calculation of Wages in Lieu of Notice   

The formula for calculating wages in lieu of notice is as follows -

Notice period expressed in days or weeks Average daily wages earned by an employee in the 12-month period preceding 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 preceding 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 case a notice has not been given, one shall adopt the average daily wages of the employee in the 12-month period preceding “the day when the contract is terminated”.
**In case a notice has not been given, one shall adopt the average monthly wages of the employee in the 12-month period preceding “the day when the contract is terminated”.

Please note that in calculating the average daily wages, an employer has to exclude (i) the periods for which an employee is not paid his/her 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. Please click this link to information on “A Concise Guide to the Employment Ordinance - Appendix 2” (PDF).

 

 

The is not a legal document. The Ordinance remains the sole authority for the provisions of the law explained.