Originally Posted by
controlledrest
Under HKG Law an employer can't bond their staff. CX has always written their own rules and done things their own way - until they get caught (Paris Base anyone?). So instead of bonding new joiners they invent things like the forgivable loan - cx loan you the money for the training you don't need in Aussi (unless you are a zero to hero cadet), then 'forgive' the loan after a few years (hoping to lock you into the bitch which is seniority). Looks like a bond, smells like a bond, walks like a bond, but we will call it a loan.
Yes I know about the forgivable loan, they give you around 1,1mill HKD and after 6 years its become your money, but my question is, is this forgivable loan applicable for DEFO also?
Originally Posted by
fe_fkf
Forgivable Loan:
Each successful candidate will be provided with a loan in the amount of HK$1,100,000. Depending on their experience, each candidate will spend a different amount of this loan on the training course prior to joining Cathay Pacific. Once they join and successfully complete probation, Officers who did not use all of the money for training will be eligible to receive the balance in cash. The candidates will be streamed into three programmes:
• Those with minimal or no flying experience will undergo an ab-initio training programme, using up the entire HK$1,100,000.
• Those with some relevant flying experience will undergo an Advanced Entry training programme costing approximately HK$550,000 and the remaining HK$550,000 will be made available to the Officer.
• Those who only require Transition Training will spend approximately HK$220,000 and the remaining HK$880,000 ($111,127.98 CDN) will be made available to the Officer.
This forgivable loan will be deemed to have been repaid through 6 years of continuous service with Cathay Pacific.
Training Bond (oh forgivable loan) is taxable after the 6-years, 17% of 1,000,000hkd
Just googled about the package of an SO and found something about the "forgivable loan", the above figures might not be updated but there's just one thing i want someone to clarify, is the so called "forgivable loan" still exist in the current SO package and will it really be taxed!?
Are this post still applicable for SO? Or is it also applicable for DEFO?