If you change your job, no matter it is out of your own aspiration or arising from termination of employment contract because of other reasons, including closure of business of your employer or redundancy, there are a few things you should take note of before ending your current employment and taking on a new one.
Ending an Employment Contract
In general circumstances, if you are the one who initiates the termination of the employment contract, you shall give your employer the required length of notice for the termination of your employment contract or payment in lieu of notice. Likewise, your employer needs to do the same if he/she initiates the termination of contract. Moreover, you should check whether you are eligible for any termination payments, such as end of year payment, severance payment or long service payment, etc.
- Termination of Contract of Employmenthttp://www.labour.gov.hk/eng/public/wcp/ConciseGuide/08.pdf
- Frequently asked questions about termination of contract of employmenthttp://www.labour.gov.hk/eng/faq/cap57d_whole.htm
- Frequently asked questions about end of year paymenthttp://www.labour.gov.hk/eng/faq/cap57j_whole.htm
- Frequently asked questions about severance and long service paymenthttp://www.labour.gov.hk/eng/faq/cap57l_whole.htm
Managing Your Mandatory Provident Fund (MPF) Benefits
As you move on to a new job, remember to manage your MPF accrued benefits (including contributions and investment returns) in the original MPF account. You can handle the MPF accrued benefits by:
- opening a personal account in another scheme of your own choice for continuous investment; or
- opening a personal account in the original scheme for continuous investment; or
- transferring the accrued benefits to your contribution account under your new employer’s MPF scheme.
Moreover, the Mandatory Provident Fund Schemes Authority (MPFA) keeps a centralised database of scheme members' personal accounts, containing information on the number of personal accounts under a member's name and the relevant MPF scheme(s). However, account details such as account number, fund invested and account balance are not available. You can fill in request form to enquire the relevent information of your personal accounts.
- Managing your MPF benefits when changing jobshttp://www.mpfa.org.hk/eng/mpf_system/system_features/transfer_accrued_benefits/index.jsp
- Request form for personal account details (pdf file)http://www.mpfa.org.hk/tch/main/contact_us/preserved_account_enquiries/files/Form_PA_SM.pdf
- Request for fund transfer form (pdf file)http://www.mpfa.org.hk/eng/information_centre/forms/mpf_schemes/scheme_members/transfer_of_accrued_benefits/files/Annex_A_to_IV_3_e.pdf
Filing Tax Returns
Before the termination of your employment, your employer has to submit a notification (Form I.R. 56F) to inform the Inland Revenue Department (IRD) about the cessation of your employment and your income from the company within the year of assessment. After submitting the notification, your employer should give you a copy to assist you to complete your tax return. You should ensure that the termination payments, if any, has been correctly computed and reported in the notification. You should clarify any details with your employer in case of doubt and rectify the information if necessary.
- Tax information about termination paymentshttp://www.gov.hk/en/residents/taxes/salaries/salariestax/chargeable/termination.htm
In addition, if you have used your previous office address as the correspondence address with IRD, you should notify IRD your new correspondence address as soon as possible so that tax returns, notices of assessment and other correspondences can reach you in time.
- Ways to inform IRD of change of addresshttp://www.ird.gov.hk/eng/tax/ind_nca.htm
Terminating Sponsorship for Overseas Employees
If you have been issued a visa to work in Hong Kong and later quit your job, you or your company should inform the Immigration Department of the termination of sponsorship. You are not allowed to change employment or take up part time job without the permission of the Immigration Department.
- Termination of Sponsorship of Overseas Employeeshttp://www.immd.gov.hk/en/faq/extend-stay-terminate-sponsorship-transfer-endorsement.html#terminate_employ_study
Last review date: October 2013