2011 Standard Employment Contract For Employees Of Contractors Of Government Service Contract Template Page 18

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Example 8
According to Clause 6(a) of the SEC, the monthly wages of an employee are $6,944.0 (working 6 days per
week and 8 hours per day). 5 days of annual leave pay (according to the Employment Ordinance) shall be:
 12-month wages earned immediately preceding the annual leave : $100,128.0, including
 $83,328.0 for 301 days of work, 52 paid rest days and 12 paid statutory holidays
 Overtime pay of $16,800.0 (where the monthly average over the past 12 months is not less
than 20% of the average monthly wages of the employee during the same 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
 5-day annual leave pay:[($100,128.0 – 0) ÷ (365 – 0) (days) x 5(days)] = $1,371.6
Calculating sickness allowance
Example 9
According to Clause 6(a) of the SEC, the monthly wages of an employee are $6,048.0 (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: $72,128.0, 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:
[($72,128.0 – 0) ÷ (365 – 54) (days)] x 4(days) x 4/5 = $231.9 x 4(days) x 4/5 = $742.1
Calculating wages in lieu of notice
Example 10
According to Clause 6(a) of the SEC, the monthly wages of an employee are $6,944.0 (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 on 3
January 2012, the employee’s wages in lieu of notice shall be:
 12-month wages earned (i.e. 2011) immediately preceding the date of notification: $83,328.0,
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:
[($83,328.0 – 0) ÷ (365 – 0) (days)] x 7(days)= $1,598.1
April 2011
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