What is sick leave 4/5?
An employee employed under a continuous contract and meets the conditions required by Employment Ordinance is entitled to corresponding sick leave and sickness allowance.
The daily rate of sickness allowance is a sum equivalent to four-fifths of the average daily wages earned by an employee in the 12-month period preceding the sickness day or the first sickness day (if more than 1 consecutive sickness day). If an employee is employed for less than 12 months, the calculation shall be based on the shorter period.
The importance of sick leave 4/5
As long as the employee provides a doctor’s certificate within the paid sick leave of not more than 120 days, he can pay at least four-fifths of his daily wages. The sickness allowance shall be paid to the employee no later than the normal payday.
Employers who fail to pay sickness allowance to their employees without reasonable excuse may be prosecuted and, upon conviction, may be fined up to HK$50,000.
The calculation of sick leave 4/5
An employee can accumulate paid sickness days after having been employed under a continuous contract. Paid sickness days are accumulated at the rate of two paid sickness days for each completed month of the employee’s employment during the first 12 months, and four paid sickness days for each completed month of employment thereafter. Paid sickness days can be accumulated throughout the whole employment period, but shall not exceed 120 days at any one time.
In calculating the average daily wages, an employer has to exclude (i) the periods for which an employee is not paid his wages or full wages, including rest day, statutory holiday, annual leave, sickness day, maternity leave, paternity leave, sick leave due to work injuries or leave taken with the agreement of the employer, and any normal working day on which the employee is not provided by the employer with work; together with (ii) the sum paid to the employee for such periods.
Workstem supports customised leave types and leave policies so as to meet various needs of enterprises. Through the Workstem One App, employees can self-check their leave balances and apply for leave; supervisors or HR can approve them anytime, anywhere without any of the document being missed. Workstem is regularly updated to keep up with labour legislation and fully meet the compliance requirements.