What should I do if I need to pay Severance or Long Service Payments (“SP/LSP”) to my employee?

An employer is bound by the Employment Ordinance to pay SP/LSP to an employee where applicable. After paying the SP/LSP, you can apply to your scheme trustee to withdraw the relevant amount from the accrued benefits derived from your mandatory contributions (and voluntary contributions, if any) to offset the SP/LSP. Long service payment/severance payment will be offset by members voluntary contribution followed by Employers mandatory contribution.