H E A LT H W E A LT H C A R E E R

2016

SEVERANCE POLICIESASIA PACIFICREPORTSAMPLE

© 2016 Mercer LLC. 2 Severance Policies — Asia Pacific

PUBLICATIONS DIRECTORSamantha Polovina

CREATIVE DIRECTORStefani Baldwin

PRODUCT MANAGERChrisy Wilson

PRODUCTION MANAGERSumit Bajaj

PROJECT MANAGERRahi Sardana

CONTRIBUTORSHua Teck Tan

ANALYSTSDivya M

GRAPHIC ARTISTSAshish Mathew Rahul KhannawaliaVishal Kapoor

COPYEDITORAnkita RawatDivya Prakash

Published by: MERCER1166 Avenue of the Americas, New York, New York 10036, United States

Condition of SaleCopyright © 2016. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or be transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise, without the prior written permission of the publishers. No responsibility for loss occurring to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors or the publishers.

For information about your order or other Mercer products, contact your nearest Mercer office:

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In today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Learn about our extensive product lineup at www.imercer.com/global.

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ASIA, MIDDLE EAST, AND AFRICA EUROPESingaporeTel: +65 6398 2324hrsolutions.ap@mercer.com

Poland Tel: +48 22 434 5383client.services.europe@mercer.com

AUSTRALIA LATIN AMERICASydneyTel: +61 2 8864 6800customerservice@mercer.com

Argentina: +54 11 4000 0954Brazil: +55 11 3048 1801client.services.la@mercer.com

CANADA UNITED STATESTorontoTel: +1 800 333 3070info.services@mercer.com

LouisvilleTel: +1 800 333 3070surveys@mercer.com

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© 2016 Mercer LLC. 3 Severance Policies — Asia Pacific

DATA MINING & INSIGHTS 4INTRODUCTION 5SUMMARY OF KEY FINDINGS 7ASIA PACIFIC 10

AUSTRALIA 11CHINA 17HONG KONG 24INDIA 28INDONESIA 35JAPAN 40MALAYSIA 45NEW ZEALAND 52PAKISTAN 55PHILIPPINES 58SINGAPORE 61SOUTH KOREA 64TAIWAN 69THAILAND 76VIETNAM 81

ABOUT THIS REPORT 88 METHODOLOGY 89 GLOSSARY 89APPENDIX A 91ABOUT MERCER 93

TABLE OF CONTENTS

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© 2016 Mercer LLC. 4 Severance Policies — Asia Pacific

DATA MINING & INSIGHTSIn today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Through Mercer’s own extensive global presence, we collect and analyse data and insights that help companies take the actions necessary to support their human capital strategies. You can order any of the publications below by clicking on the title links or by visiting www.imercer.com/global.

Compensation Handbook

Global Car Policies

Global Compensation

Planning Report

Global Diversity and Inclusions

Handbook

Global Pay Summary

HR Atlas Asia Pacific

HR Management Terms

2016

AMERICASSHORT-TERM INCENTIVES AROUND THE WORLD

H E A LT H W E A LT H C A R E E R

Short-Term Incentives around

the World

International Geographic Salary

Differentials

Total Employment Costs around

the World

Worldwide Benefit & Employment

Guidelines

H E A LT H W E A LT H C A R E E R

I N T E R N A T I O N A L L I V I N G W A G E R E P O R T 2015

International Living Wage

Report

Talent All Access Portal

Subscription Services

Global Mobility Handbook

2016GLOBAL CAR POLICIES

H E A LT H W E A LT H C A R E E R

Severance Policies-

Asia Pacific

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© 2016 Mercer LLC. 5 Severance Policies — Asia Pacific

INTRODUCTIONMercer has complied the latest findings around statutory and market practice provisions on severance policies across 15 countries.

The 15 countries included in this report are:

AUSTRALIA

MALAYSIA

TAIWAN

CHINA

NEW ZEALAND

THAILAND

HONG KONG

PAKISTAN

VIETNAM

INDIA

PHILIPPINES

INDONESIA

SINGAPORE

JAPAN

SOUTH KOREA

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© 2016 Mercer LLC. 6 Severance Policies — Asia Pacific

INTRODUCTION

Information varies by country; where available the following content is provided based on statutory requirements and market practice.

INDIVIDUAL TERMINATION/SEVERANCE • Definition

• Eligibility

• Methods

• Notice period

• Calculation formulas

COLLECTIVE DISMISSAL/REDUNDANCY • Definition

• Eligibility

• Methods

• Notice period

• Calculation formulas

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ASIA PACIFIC

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© 2016 Mercer LLC. 8 Severance Policies — Asia Pacific

SAMPLE COUNTRYLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum LoremipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum.REPORTSAMPLE

© 2016 Mercer LLC. 9 Severance Policies — Asia Pacific

INDIVIDUAL TERMINATION/SEVERANCEDEFINITION

STATUTORY REQUIREMENT MARKET PRACTICE/COMMENTARY

FAIR DISMISSAL

Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum.

As per statutory requirement.

SAMPLE COUNTRY

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© 2016 Mercer LLC. 10 Severance Policies — Asia Pacific

INDIVIDUAL TERMINATION/SEVERANCE, CONTINUEDDEFINITION

STATUTORY REQUIREMENT MARKET PRACTICE/COMMENTARY

UNFAIR DISMISSAL

Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem

• Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum

• Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum

• Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum

As per statutory requirement.

SAMPLE COUNTRY

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© 2016 Mercer LLC. 11 Severance Policies — Asia Pacific

INDIVIDUAL TERMINATION/SEVERANCE, CONTINUEDELIGIBILITY

STATUTORY REQUIREMENT MARKET PRACTICE/COMMENTARYELIGIBILITY Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum As per statutory requirement.

LIMITS Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum As per statutory requirement.

NOTICE PERIODSTATUTORY REQUIREMENT MARKET PRACTICE/COMMENTARY

COMPANY NOTICE PERIOD

Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem

Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum. Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem

Notice PeriodFour weeks of notice is typically provided by companies.

LENGTH OF SERVICE (YEARS) PERIOD OF NOTICE (WEEKS)

less than x At least x

more than x but less than x At least x

more than x but less than x At least x

more than x At least x

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© 2016 Mercer LLC. 12 Severance Policies — Asia Pacific

SEVERANCE PAYMENT

Lorem ipsum

Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum

Lorem ipsum Lorem ipsum:

As per statutory requirement.

LENGTH OF SERVICE (YEARS) AMOUNT OF PAY (WEEKS’ PAY) *

Less than x Nil

x and less than x x

x and less than x x

x and less than x x

x and less than x x

x and less than x x

x and less than x x

x and less than x x

x and less than x x

x and less than x x

More than x* x

* Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum

Lorem ipsum

Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum

SAMPLE COUNTRY

INDIVIDUAL TERMINATION/SEVERANCE, CONTINUEDCALCULATION FORMULAS (IF ANY)

STATUTORY REQUIREMENT MARKET PRACTICE/COMMENTARY

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© 2016 Mercer LLC. 13 Severance Policies — Asia Pacific

COLLECTIVE DISMISSAL/REDUNDANCYDEFINITION

STATUTORY REQUIREMENT MARKET PRACTICE/COMMENTARY

COLLECTIVE DISMISSAL

Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsumLorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum

Please refer to the section above under “Individual Termination/Severance.”

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© 2016 Mercer LLC. 14 Severance Policies — Asia Pacific

Mercer is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset – their people. Mercer’s 20,500+ employees are based in more than 40 countries, and we operate in more than 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital.

ABOUT MERCER

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For further information, please contact your local Mercer office or visit our website at www.mercer.com

Copyright 2016 Mercer LLC. All rights reserved. 16-SP-APAC-May

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