[2026 Latest] Complete Guide to Foreign Domestic Helper Long Service Payment: Calculation, Forms & Dismissal Essentials for Contract Completion and Early Termination

Complete Guide to Foreign Domestic Helper Long Service Payment: A Legal Must-Read for Employers on Contract Completion and Early Termination

When hiring a foreign domestic helper in Hong Kong, the foreign domestic helper long service payment is often the area most prone to misunderstanding between employers and helpers at the end of a contract. Whether you are preparing to handle helper contract completion procedures, facing early termination by a helper, or struggling with the division of responsibilities after a helper breaks the contract, this article takes a macro perspective to break down the statutory thresholds, calculation methods, forms, and English version of the helper long service payment in one go. It also outlines the practical key points of related subtopics to help you make compliant and wise decisions throughout the hiring cycle.

As the overview page for this topic, this article first establishes a complete framework. As for the step-by-step procedures, visa documents, and cost details of changing employers and contract renewal, these are left for dedicated subpages for in-depth discussion. Readers should first grasp the foundational concepts in this article, then extend their reading according to their actual situation.

What Is the Foreign Domestic Helper Long Service Payment? Statutory Definition and Applicability

The foreign domestic helper long service payment (LSP) is a statutory right protecting employees under the Employment Ordinance. Like ordinary local employees, local helpers who complete their contracts and currently employed foreign domestic helpers are equally protected by the relevant provisions. The key prerequisite is: the helper must have been continuously employed by the same household for 5 years and must not leave due to serious misconduct in order to be eligible. "Leaving not due to serious misconduct" includes situations such as not renewing upon contract expiry, resigning for health reasons, or being dismissed by the employer on grounds other than serious misconduct. Conversely, if dismissing a foreign domestic helper is based on serious misconduct (such as theft, violence, or wilful dereliction of duty), the employer is generally exempt from payment.

Many employers mistakenly believe that "foreign domestic helpers are not local employees, so there is no long service payment." This is a common misconception. The Filipino helper long service payment, like that of helpers of other nationalities, is handled under the same statutory framework. As for the English version of the foreign domestic helper long service payment that is often searched for, it is mostly used when explaining rights to helpers or citing in termination notices; official documents are still based on Chinese or bilingual Chinese-English versions.

Helper Long Service Payment Calculation Method: Breaking Down the Filipino Helper Long Service Payment Calculation

The Filipino helper long service payment calculation method is consistent with that of other foreign domestic helpers. The formula is: last month's wages × two-thirds × reckonable years of service. Attention must be paid to the wage cap and the rules for calculating years of service, based on the years of continuous employment by the same household. The following table summarizes the comparison of entitlements under common scenarios for employers to make quick judgments:

In practice, the foreign domestic helper long service payment form is mostly used to record years of service, last monthly salary, and calculation results for both parties to sign and confirm. Employers should keep wage records, MPF (if applicable), and copies of contracts for future verification.

Helper Contract Completion Procedures and Renewal Decisions: The Threshold of Long Service Payment

When a foreign domestic helper's contract is about to expire, the employer must choose between helper contract completion procedures and renewal. If the decision is not to renew upon contract completion, and the Filipino helper whose contract is completed has been continuously employed by the same household for 5 years, the employer must settle the long service payment and arrange air tickets and contract termination documents. Conversely, if renewal is chosen, immediate payment of the long service payment can be avoided, but attention must be paid to renewal procedures, visa documents, costs, and timing——these details will be elaborated in the "Complete Guide to Foreign Domestic Helper Contract Renewal" subpage.

It is worth reminding that some employers handle agency fees through "instalment payments," but the long service payment is a statutory entitlement and must not be confused with agency fees, nor should it be split or delayed in any form. If there are doubts about the calculation, it is advisable to consult the Labour Department or professional advice as early as possible.

Overview of Foreign Domestic Helper Contract Termination, Early Termination and Contract-Breaking Helper Procedures

Foreign domestic helper contract termination can be divided into contract expiry, employer dismissal, helper resignation, and mutual agreement termination. When early termination by a helper is involved, the employer must clarify which party initiated the termination, whether 5 years have been completed, and whether serious misconduct is involved, in order to determine the long service payment liability. As for air tickets for early termination of a foreign domestic helper, generally speaking, regardless of which party initiates the termination, the employer usually still bears the cost of the helper's return air ticket to the place of origin. If it is a helper breaking the contract involving serious misconduct, it is handled according to the contract and Labour Department guidelines.

Contract-breaking helper procedures involve multiple steps, including notice period, payment in lieu of notice, air tickets, visa cancellation, and long service payment settlement. A slight oversight can easily lead to disputes. If the helper subsequently changes employers, it further involves the interface between old and new contracts, visas, and long service payment risk assessment——these practical processes will be broken down item by item in the "Complete Guide to Changing Foreign Domestic Helper Employers" subpage. This article only provides conceptual groundwork.

Employer Practical Checklist: Avoiding Long Service Payment Disputes

• Verify years of service: Confirm whether the helper has been continuously employed by the same household for 5 years, and keep complete contracts and wage records.
• Clarify the reason for departure: Distinguish between "contract completion without renewal," "employer dismissal," "helper resignation," and "summary dismissal for serious misconduct," as this directly affects long service payment eligibility.
• Prepare calculation documents: Use the foreign domestic helper long service payment form to record the last monthly salary, years of service, and calculation results, and have both parties sign to confirm.
• Arrange air tickets and visas: Handle return air tickets to the place of origin according to the contract and Labour Department guidelines, and remember the deadline for visa cancellation.
• Distinguish the nature of fees: Agency fees are handled through instalment payments; never confuse them with the statutory long service payment.

Frequently Asked Questions (FAQ)

Q: Is a foreign domestic helper definitely entitled to the long service payment after completing 5 years?
A: Not necessarily. Under the Employment Ordinance, the helper must have been continuously employed by the same household for 5 years, and the reason for departure must meet the statutory conditions (for example, dismissal not due to serious misconduct, non-renewal upon contract expiry, resignation for health reasons, etc.). If the helper is summarily dismissed for serious misconduct, or resigns voluntarily for reasons other than health, they are generally not eligible.

Q: If a foreign domestic helper is terminated early, does the employer still have to pay the long service payment and air ticket?
A: It depends on the reason for termination. If the employer initiates dismissal and the helper has completed 5 years of service, the long service payment is generally payable. Regarding air tickets, regardless of which party initiates the termination, the employer usually still bears the cost of the helper's return air ticket to the place of origin. If it is a helper breaking the contract or serious misconduct, it is handled according to the contract and Labour Department guidelines; it is advisable to keep written records.

Q: Is there a difference in the long service payment calculation between a Filipino helper resigning and not renewing upon contract completion?
A: Yes, there is a difference. A Filipino helper who resigns is generally not entitled to the long service payment unless the resignation is related to health or infringement of statutory rights. Not renewing upon contract completion (i.e., contract expiry) is one of the statutory situations in which the long service payment is payable. The calculation method is the same: two-thirds of the monthly salary multiplied by years of service, subject to a cap; the actual amount must be calculated based on the final monthly salary and years of service.