Offsetting of Severance and Long Service Payments

If you are an employer, you can offset long service payment and severance payment as required under the Employment Ordinance by the accrued benefits derived from contributions you have made to the employee in the MPF scheme. You can apply to the trustee for payment of the relevant amount to you for this purpose, but only after you have paid the employee his or her due long service payment and severance payment.

Please note that in offsetting this type of compensation, you need to follow other requirements set out in the Employment Ordinance concerning such payments.