2015 Standard Employment Contract For Employees Of Contractors Of Government Service Contract Template (Page 19 of 19) in pdf

2015 Standard Employment Contract For Employees Of Contractors Of Government Service Contract Template Page 19

Calculating sickness allowance

Example 10

According to Clause 6(a) of the SEC, the monthly wages of an employee are $7,020.0 (working 5 days per

week and 8 hours per day). If the employee is granted 4 consecutive days of sick leave, the sickness

allowance of the 4 days (according to the Employment Ordinance) shall be:

 12-month wages earned immediately preceding the first sickness day:$83,720.0, including wages of

240 days of work and the following leaves (no overtime work is performed during the period):

 52 paid rest days

 12 paid statutory holidays

 7 days of paid annual leave

 52 unpaid contractual day-off

 1 day no-pay leave in May (leave taken with the agreement of the Employer)

 1 day no-pay leave in July (leave taken with the agreement of the Employer).

 Periods and the sum to be disregarded: 52 unpaid contractual day-off and 2 days of no-pay leave (as

the 54 days are no-pay leave, the amount to be disregarded will be $0).

 4-day sickness allowance:

[($83,720.0 – 0)  (365 – 54) (days)] x 4(days) x 4/5 = $269.2 x 4(days) x 4/5 = $861.4.

Calculating wages in lieu of notice

Example 11

According to Clause 6(a) of the SEC, the monthly wages of an employee are $8,060.0 (working 6 days per

week and 8 hours per day). Clause 17 of the SEC specifies that there is no probation period, and a notice

period of 7 days or payment in lieu of notice is required. If the employer terminates the employment, the

employee’s wages in lieu of notice shall be:

 12-month wages earned immediately preceding the date of notification:$96,720.0, including wages of

301 days of work, 52 paid rest days and 12 paid statutory holidays. No overtime work is performed

during the period.

 Periods and the sum to be disregarded: No period and sum have to be disregarded because the

employee is not paid less than his full wages for the leave taken in the 12-month period.

 Amount of 7 days’ wages in lieu of notice:

[($96,720.0 – 0)  (365 – 0) (days)] x 7(days)= $1,854.9.

April 2015

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2015 Standard Employment Contract For Employees Of Contractors Of Government Service Contract Template Page 19