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Termination Letter + SP/LSP Calculation

Termination notice combined with the severance payment (SP) / long service payment (LSP) calculation — split into a pre-transition and post-transition portion following the abolition of MPF offsetting on 1 May 2025.

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🇭🇰 ჰონკონგის სპეციალური ადმინისტრაციული რეგიონი, ჩინეთი
Category
HR & staff
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EN
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1

⚠️ This is a blank template, not legal advice: check the wording with a lawyer and adapt it to your jurisdiction and your case.

This template has no optional clauses: the text is the same for everyone.

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TERMINATION LETTER AND SEVERANCE / LONG SERVICE PAYMENT CALCULATION

Employee: Position: Date of notice: Last working day:

This letter gives notice of termination under the Employment Ordinance (EO, Cap. 57) and sets out the calculation of severance payment (SP) / long service payment (LSP), if payable, following the abolition of the MPF offsetting arrangement with effect from 1 May 2025.

1. TERMINATION 1.1. Reason: 1.2. Notice given / payment in lieu:

2. SP/LSP CALCULATION — PRE-TRANSITION PORTION (SERVICE TO 30 APRIL 2025) 2.1. Years of service to 30 April 2025: 2.2. Monthly wage as at 30 April 2025: 2.3. Formula: 2/3 × monthly wage (capped at HK$22,500) × years of service. For this portion, accrued benefits attributable to the employer's mandatory MPF contributions MAY be used to offset the amount payable. 2.4. Pre-transition amount:

3. SP/LSP CALCULATION — POST-TRANSITION PORTION (SERVICE FROM 1 MAY 2025) 3.1. Years of service from 1 May 2025: 3.2. Last full month's wage: 3.3. Formula: 2/3 × monthly wage (capped at HK$22,500) × years of service. For this portion, mandatory MPF contributions may NOT be used as an offset — only voluntary contributions or gratuities attributable to service may reduce it. 3.4. Post-transition amount:

4. TOTAL 4.1. Total SP/LSP, subject to the overall cap of HK$390,000: 4.2. Employers facing difficulty funding the post-transition, non-offsettable portion may be eligible for the government's 25-year Subsidy Scheme; the MPFA's EasyCal tool may be used to verify this calculation.

5. FINAL PAYMENT 5.1. All final payments (wages, unused leave, SP/LSP) are due by: .

Employer ______________ Employee (acknowledged receipt) ______________ / /

This is a boilerplate template, not legal advice. Hong Kong's Employment Ordinance, MPF, Employees' Compensation, and PDPO compliance regimes are subject to near-term and phased changes — including the abolition of MPF offsetting for severance/long service payments (in effect since 1 May 2025), the "468 rule" for continuous contracts (in effect from 18 January 2026), the Statutory Minimum Wage rising to HK$43.1/hour (from 1 May 2026, now subject to annual review), the growing statutory holiday schedule (15 days in 2026), and a pending public consultation on cooling-off periods for prepaid beauty/fitness contracts (29 June – 31 August 2026) — have this template reviewed and adapted by a lawyer before use, and confirm the current rules and thresholds at labour.gov.hk, mpfa.org.hk, pcpd.org.hk, and fehd.gov.hk on the date of use.

In Cenaly this template fills itself in

2 of 14 fields are taken from the company, employee or counterparty record, the questionnaire can be dictated to the AI, and the finished document comes with a number, a PDF and an acknowledgement record.