Finished Contract or Terminated Contract ?

Finished Contract or Terminated Contract ?

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HelperPlace

09 Nov 2023 | 5 min read

In the recruitment of a domestic helper, understanding the nuances between a finished contract and a terminated contract for domestic helpers in Hong Kong is crucial for both employers and employees. There are several different situations you might face, and each one has its own rules. This guide will help you understand the various contract statuses and what they mean for you, so you can make informed decisions and find the right help for your household without any stress

What is the meaning of Finished Contract Status for Domestic Helpers?

To finish a contract would mean that the domestic helper has completed the contract, the standard employment contract is effective for two years. At that moment, the worker has the possibility to renew or move on. A domestic helper with a finished contract can apply for a new job (or renew her current contract). She can go for interviews and get appointed into employment without having to go through an employment agency and without going back to her country of origin. The helper is able to apply for the stay visa to be extended, thereby delaying annual leave at the end of the contract. For employers, this means that if you connect with a candidate within Hong Kong nearing or at the end of their contract, the visa processing could be expedited to just 2 to 4 weeks. A lot of finished contract candidates are available on HelperPlace.

Termination due to relocation

With the abundance of expatriates being moved from country to country, a lot of domestic helpers are terminated due to relocation. In this specific case, the helper can apply for work without having through employment agency and without going back to her country of origin. The visa processing time is only from 2 to 4 weeks, helpers are considered as finished contract.

Termination due to financial reasons

This happens when the family finds itself in financial trouble and can no longer afford to pay a foreign domestic helper. This could be due to the breadwinner of the family losing employment, or through illness affecting the breadwinner’s ability to earn a living. In this case, the employer would be unable to afford to continue with the helper’s employment contract. In this specific case, the helper can apply for work without having through employment agency and without going back to her country of origin. The visa processing time is only from 2 to 4 weeks, helpers are considered as finished contract.

Termination due to special reasons

If unfortunately the previous employer passed away, the end of contract will be considered as finished contract (proof must be provided). For this special reason, the visa processing time is from 2 to 4 weeks.

Break contract, by the Helper

To break a contract, the helper leaves the job. It may be due to many reasons. The main reason is because some employers are treating the helper unfairly:

  • making the worker toil for unreasonable hours, or more than is usual
  • not giving the helper enough food
  • not paying the salary
  • making the worker sleep in poor conditions due to lack of space in the apartment
  • refusing medical attention

The Labour Department should be the one to intervene if a worker is being exploited in any of these instances, but the onus of providing the proof falls on the helper and a lack of evidence will not support a claim. Some helpers are also breaking their contract due to personal reasons (medical emergency, family issue in her country...) or because they don't like to work for their employers! In these cases, the helper invariably chooses to leave the job, and not prolong her contract. The helper must perform her notice period of one month and then she will go back to her country of origin. An employer who wants to hire a break contract has the obligation to use an employment agency. In this case, a new immigration process is required (at least 8 weeks, average 12 weeks).

What are the consequences of a Termination for other reasons?

A terminated contract occurs when the helper is fired from the job. The reason can be due to misdemeanours such as theft, laziness, harming children in their care... The Immigration Department takes the reason an employee has left employment very seriously. An employer who wants to hire a terminated contract for other reasons has the obligation to use an employment agency. In this case, a new immigration process is required (at least 8 weeks, average 12 weeks).

How to Hire Overseas Candidates?

A lot of employers are hiring Filipino or Indonesian who are living in their country of origin. They are looking for the Right Helper (time and cost are not the main criteria for them!). In this case, an employment agency must be used to notarize the employment contract. The role of the agency is to search skilled candidates, schedule interviews, arrange medical check up, prepare the contract, handle the visa application and assist helper to report to their own country’s consulate and apply for the Hong Kong ID. Choose carefully an ethical employment agency to help you for immigration process (at least 12 weeks).

Don't forget!

By law, it's not allowed for a foreign domestic helper to work for a new employer until the helper get the work visa. The Immigration Department has a very complex and thorough employment contract form for foreign workers. This appears to cover all eventualities:

  • Hours of work and job location
  • A job description (how many members to serve, age of the kids...)
  • Salary offered – which may not be below the Hong Kong minimum wage
  • The accommodation offered
  • Medical Insurance
  • Compensation would be paid
  • Vacation conditions – which include public holidays, rest days and annual leave and many more factors

If you need more information about the hiring process of a domestic helper, you can read the following guide how to hire a domestic helper