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How to Properly Handle the Termination of Employment Contract Procedure(Must see by Employer)

Can an employer terminate the employment contract before it completes?

  • Yes. Either party may terminate the contract by giving 1 month’s notice in writing or 1 month’s wages in lieu of notice to the other party. 


What should I do upon termination or completion of the employmentcontract?

  • You should clear all outstanding wages and other sums due to your helper, preferably by payment through the bank, and obtain a

receipt for all payments.

  • You are required to notify the Foreign Domestic Helpers Section

of the Immigration Department in writing of the termination within 7 days of the date of termination. It is not necessary to inform the

Labour Department.


Can an employer or a helper terminate the contract without notice or payment in lieu of notice?

Termination without notice or payment in lieu of notice is allowed only under special circumstances.

You may summarily dismiss your helper without notice or payment in lieu of notice if your helper, in relation to the employment :

  • wilfully disobeys a lawful andreasonable order;

  • misconducts himself/herself;

  • is guilty of fraud or dishonesty; or

  • is habitually neglectful in his/herduties.


What should I bear in mind when considering termination of the contract without notice?

  • Termination of employment without notice is usually preceded by disagreement between the employer and the helper. In the midst of heated arguments, things may be blown out of proportions and either party may there and then believe that it is justified for him/her to terminate the contract or to consider that it has been terminated. This often turns out to be ill-conceived. As independent witnesses are not usually available in a domestic environment, it will be difficult to re-construct the circumstances leading to the dispute and decide whether the action taken is justified.

  • The best way to solve problems arising from employment is for the parties to talk things out. Try to be considerate and tolerant with each other in sorting out your differences. Most problems can be resolved without resorting to drastic actions.

  • Termination of employment without notice should be considered only under very special circumstances. If you really have to do so, you should make sure that you have sufficient evidence to back up your case. Otherwise, you will likely face a claim from the other party.


What should I do if my helper leaves without giving me notice or payment in lieu of notice?

  • You should notify the Foreign Domestic Helpers Section of the Immigration Department if you consider that the contract has been unilaterally terminated by the other party. For the employer, if you are unable to locate the whereabouts of the helper, you may also wish to report the case of missing helper to the Police.

  • If you consider that the other party is not entitled to terminate the contract without notice and you wish to claim payment in lieu of notice, you should approach the branch office of the Labour Relations Division of the Labour Department without delay. This Division will help you settle your claim by conciliation. 

  • You may of course waive the requirement of proper notice from the other party


Sunlight Employment Agency hopes that this article could help employers have a better understanding of how to properly handle termination of employment contracts.

The information provided on this website is for reference only. No express or implied warranty is given by the Sunlight Employment agency as to the accuracy of the information and will NOT be liable for any errors in, omissions from, or misstatements or misrepresentations (whether express or implied) concerning any such information.
© 2024 SUNLIGHT INTERNET (ASIA) TECHNOLOGY LIMITED. ALL RIGHTS RESERVED.
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