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No contract renewal

Thu, 12 Oct 2017 03:48:10 PM  (Last updated: Thu, 12 Oct 2017 07:04:04 PM)

We have a list of staff that their contract has actually expired on 30 September 2017.

We intended to not to renew their contract. They have been working since April 2013, and contract been renewed yearly without gap. We are giving 1 month notice beginning 13 October 2017 and will pay their salary up to their last employment day, 12 November 2017. We also will pay their annual leave balance (entitle in prorate basis 14 days in 1 year).

My question is:

1) Do we still need to pay them compensation?

2) If we hire contract staff and renew with gap, is it true that they are not entitle for annual leave?


KL Siew
Thu, 12 Oct 2017 07:04:04 PM

1. In my opinion, to those who have been working since 2013, you have to pay termination benefits based on the Employment(Termination and Layoff Benefits)Regulations.

 2. To do that, you may have to terminate thier service at the end of the contract and after a period of a month or so and employ them again with a new yearly contract. That's some employers do in order to avoid "continuous period service".  But don't take my words for it and you better consult the Labour Department and talk to the officer about what you intended to do.