Offsetting of Severance and Long Service Payments

You can offset long service and severance payments (as required under the Employment Ordinance) by an employee's vested benefits that are attributable to the employer's contributions made to an ORSO scheme (N.B. this also applies to MPF schemes). You, as the relevant employer, can apply to the administrator of the scheme for a reimbursement of this amount after paying the employee.

Please note that in offsetting long service payments and severance payments, you still need to follow other requirements set out in the Employment Ordinance concerning such payments.