An employee who has been employed under a continuous contract for 24 months or more and
is dismissed by reason of redundancy or lay-off is entitled to a severance payment. The amount
of the severance payment is two-thirds of the employee's last full month's wages or two-thirds
of HK$22,500, whichever is less, for each year of service. The current maximum severance
payment payable is HK$390,000. The amount of any gratuity or retirement scheme payment to
the employee, based on length of service, is deductible from the amount of severance payment
entitlement. In the case of a retirement scheme payment, only the employer's contributions (and
interest thereon) may be deducted