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Jenny
01/09/2010 14:46:46
Re: Termination a full time staff

we have to terminate a full time staff on 20 Sep 2010 who work from
6 Sep 07 ( service year 3.04year) , she has basic salary $1500 & $600 commission for each month , how to calculate her final payment ?

Is it need to pay severance pay & payment in lieu to her ?
If yes , how to calculate ?

Please kindly advise asap !

Thanks a lot !
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KL Siew
pesaraonline@gmail.com
01/09/2010 14:58:37
For payment of termination and layoff benefits you may use Employment(Termination and Layoff Benefits)Regulation as a guide.
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Jenny
01/09/2010 16:45:12
I checked the termination and layoff benefits rule ,there is no any payment in lieu for this staff , is it correct ? Please kindly advise .

And the severance pay for this case is (1500+600)x12/365 x (15 days x 3 year service year) = 3106.85 , is the formula right ? Please kindly advise .

Thanks a lot !
Jenny
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KL Siew
01/09/2010 17:16:10
Payment in lieu of notice is a different matter. If you terminate the staff with immediate effect without prior notice, you will have to pay indemnity in lieu of notice.
The calculation is correct.
Another thing, you may have to clear his balance of annual leave or pay for the leave balance not taken.
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Jenny
02/09/2010 14:40:35
If staff have "Discretionary Bonus" on Dec 2009 , do we need to count it in the severance pay ?

Many thanks for your help !
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KL Siew
02/09/2010 15:15:19
If the payment fell within the period of the 12 months, I think it should be included. Consult the Labour Department also for an official ruling on this.
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