Do I pay sick leave in Hong Kong and how much

Do I Pay Sick Leave in Hong Kong

Yes. Under the Employment Ordinance (Cap. 57), you must pay sick leave to an employee who meets the eligibility conditions. Payment hinges on the employee having enough accumulated paid sickness days and providing the required medical certificate.

Sick Leave Entitlement Hong Kong

An employee on a continuous contract is entitled to paid sickness allowance. A continuous contract means the employee has been employed for at least four weeks and works 18 hours or more each week. Entitlement builds at two days per month for the first 12 months of service, then four days per month thereafter. The total entitlement caps at 120 days.

The employee must take sick leave on a scheduled working day. You can require a medical certificate signed by a registered medical practitioner or a registered Chinese medicine practitioner. For absences shorter than four consecutive days, you may still ask for a certificate, but the employee is not legally required to provide one for the first three days.

Sickness Allowance Calculation HK

Sickness allowance is four-fifths (80%) of the employee's average daily wages. Calculate average daily wages by dividing the total wages earned in the 12 months before the sick leave by the number of days worked in that same period. Pay the allowance on the normal payday for the period in which the sick leave falls.

If the employee has no accumulated paid sickness days, you do not pay sickness allowance. The employee may still take unpaid sick leave, but you cannot treat the absence as a breach of contract.

Employment Ordinance Sick Leave

The Employment Ordinance (Cap. 57) governs statutory sick leave. An employee qualifies for sickness allowance if:

• The sick leave lasts at least four consecutive days, unless the employee has a medical certificate for a shorter period and you agree to pay.
• The employee has enough accumulated paid sickness days.
• The employee provides a medical certificate if you require one.

Sickness allowance is not payable for sick leave taken on a rest day, as the rest day is already a paid day off. You must not dismiss an employee while they are on paid sick leave. Doing so contravenes the Employment Ordinance and may entitle the employee to remedies like reinstatement or compensation.

Medical Certificate Requirement

For sick leave of four or more consecutive days, you may require a medical certificate stating the employee is unfit for work. If the employee fails to provide a required certificate, you may withhold the sickness allowance for that period.

For sick leave of fewer than four consecutive days, you may still request a certificate, but the employee is not statutorily obliged to provide one. You may choose to pay sickness allowance for such short absences without a certificate, but you are not required to.

Payment in Lieu of Notice and Other Payments

If you dismiss an employee during paid sick leave, you must pay the sickness allowance for any sick days falling within the notice period, in addition to any payment in lieu of notice. You must also pay the allowance for any remaining paid sickness days after the notice period ends, up to the 120-day maximum.

Sickness allowance does not affect the calculation of other statutory entitlements like severance payment or long service payment. Pay the sickness allowance separately from these other payments.

Labour Department Guidance

The Labour Department offers detailed guidance on calculating and paying sickness allowance. Consult the department's website or contact it directly for assistance with specific cases. The department also handles complaints about non-payment of sickness allowance and may take enforcement action against employers who fail to comply with the Employment Ordinance.