Long Service Payment (LSP) / Severance Payment (SP) made by employers
Under the Employment Ordinance, employees may be entitled to LSP or SP payable by their employers.
For more information on the eligibility for and calculation of LSP/SP, please visit Labour Department’s website.
Offsetting LSP/SP against MPF
Employers can offset the LSP/SP payable to employees under the Employment Ordinance against the MPF derived from the employer’s mandatory and voluntary contributions.
Employees should ask their employers for a letter to confirm that the LSP/SP has not been paid to them.
The letter should include:
- the employer’s authorized signature; and
- the company chop.