Fixed Term Contract Hong Kong

An employment contract is considered an uninterrupted employment contract if the employee has been employed for at least 4 weeks, with the employee working at least 18 hours per week. If an employment contract is not an uninterrupted employment contract, the minimum notice period of 7 days does not apply. An employment contract that is considered to be a contract that can be extended from month to month and that provides for the required notice period may be terminated in accordance with that notice period. In the case of an employment contract of indefinite duration, however, the notice period must be at least 7 days. While it may seem complex to use a fixed-term contract to hire abroad, keep in mind that you are also bound by many labor laws if you use a contract of indefinite duration! Most countries require different notice periods to lay off employees, and some have severance pay. Termination for cause terminates the employment contract with immediate effect. A summary dismissal does not affect an employee`s right to unpaid wages and accrued year-end bonuses. However, the employee is not entitled to long-term or severance pay. A fixed-term contract, also known as a fixed-term contract (LT), sets the start and end dates of an employment contract.

This is different from a short-term independent contractor contract because the employee has all the benefits and rights for the duration specified in the employment contract almost exactly like any other full-time employee. At the end of the fixed-term contract, the employer must decide whether to extend the contract or to separate from his employee. The duration of this type of contract is usually between 12 months and 3 years. Temporary employees are usually the right choice if you fill a certain gap, like. B hiring for seasonal work or coverage of a maternity leave position. This approach can also work for testing waters with a new type of position or location, or for finding highly specialized skills or talents from a contractor. These laws vary from country to country. In China, the limit is also 2 fixed-term contracts, which can go up to 10 years in total.

The only other country where a full decade of fixed-term contracts is legally allowed is Estonia. On the other side of the scale, in Chile, you are limited to 12 months before you have to switch to an employment contract of indefinite duration. State-of-the-art technology that streamlines your payroll and ensures compliance in more than 140 countries for EoR, contractors and payroll staff. Contact us for more details! The employer bears the burden of proof for the justification of dismissal for a valid reason. Case law suggests that an employer can only dismiss an employee without notice if the employee`s misconduct is so serious that it amounts to a fundamental discharge of the employee`s contractual obligations. Termination without notice without sufficient justification may result in unlawful termination. whether the contract is considered to be a contract that can be renewed from one month to the next; and anyone transferred to Hong Kong by their company or employee from abroad should seek professional financial advice regarding their contractual and tax status. They must check whether their contract includes health insurance, moving expenses, education allowance, housing allowance and membership in an association.

In Germany, the law stipulates that 24 months is the maximum for fixed-term contracts, divided into a maximum of 4 contractual periods. However, there is an ongoing discussion about whether the same employee can be rehired on a fixed-term contract after a certain period of time. In fact, the Federal Constitutional Court overturned an earlier decision of the Federal Labour Court on this issue. If you`re hiring for a new role in your department, growing your business by expanding a specific team, setting up a unit in a new location, or filling a void due to a staff shortage or more work than you can take, an open-ended contract is probably the way to go. any other reason why the employer would be entitled to terminate the contract without notice under general law. For the end of the notice periods, the Employment Ordinance stipulates that the notice period begins on the day of the end of the employment relationship and ends at the end of the day before the corresponding date of the following month. If there is no corresponding date in the following month, the notice period ends on the last day of the following month. However, the Labour Court`s decision was later overturned by the High Court on Appeal by EOC.

The High Court has held that, as the law currently stands, the duty of mutual trust cannot be applied to dilute an employer`s right to terminate an employee`s employment relationship without giving reasons, based on the termination provisions of the contract and/or the act. In that judgment, the court pointed out that it is generally accepted that a contractual right of termination (either of the employer or of the employee) may be exercised inappropriately or capriciously as long as that right is exercised in accordance with the contract. The court does not deal with the correctness or inaccuracy of a dismissal. In the event of termination of an employment contract, no grounds for termination are required. The Labour Court had traditionally stated that if more than three years had elapsed between contracts, a new fixed-term agreement could be introduced in a compliant manner. According to the rather vague rules of the Constitutional Court, for a fixed-term contract to be valid, a previous job would have to be “a very long time ago, of a completely different type or of a very short duration”. In a recent case where the employee had not worked for the company for 8 years, it was not considered long enough to fall into these conditions. Dismissal is relatively easy in Hong Kong. Subject to certain exceptions, the employment contract may be terminated by the Company at any time by terminating the employee named in the contract or by paying a notice period. The Lam Siu Wai case stems from a decision of the Equal Opportunities Commission (“EOC”) to terminate the employment relationship of a senior manager for remuneration in accordance with his employment contract and section 7 of the Labour Ordinance (Chapter 57) 2.

The EOC decision was not due to a lack of job performance or misconduct on the part of the employee. However, EOC noted in its dismissal letter that the employee`s recent recruitment and behaviour did not exactly match the requirements of her managerial position, which formed the basis for the termination of her employment relationship. The minimum cancellation varies between seven days and one month, depending on the duration of the contract. An employer may dismiss an employee without notice in certain circumstances, even in the case of serious misconduct, although the threshold for justifying dismissal without notice is high. When hiring new employees at home or abroad, you must choose between the two most common types of employment contracts. These are temporary and indefinite. Understanding what these terms mean and the differences in how you can use these contracts consistently around the world is an essential but complex task. Hong Kong`s workforce is cosmopolitan and consists of different people in terms of ethnicity, gender and age. Therefore, employers are encouraged to eliminate discriminatory employment practices. In this context, the Ministry of Labour has issued some guidelines on how to prevent discrimination based on sex, disability, marital status and race in the workplace.

Here is a summary of the guidelines: In some regions, there are more complex laws to follow. In South Africa, for example, the protection of low-income workers is applied directly by the wage you offer to your employees. If you pay your employee less than $14,500 per year, their fixed-term contract cannot exceed 3 months. .