Q45: Under what circumstances should an employer pay severance payment or long service payment to his helper if he terminates the helper's contract?
A45: An employer should pay severance payment to his helper if the helper has been employed continuously for not less than 24 months and is dismissed (or his/her contract is not renewed) by reason of redundancy.
An employer should pay long service payment to his helper if the helper has been employed continuously for not less than 5 years and is dismissed (or his/her contract is not renewed) by reason other than serious misconduct of the helper or redundancy.
However, an employer is not required to pay both long service payment and severance payment to the helper.
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