Introduction to hiring employees in Hong Kong
Hiring employees in Hong Kong must comply with the region’s key labor legislations, especially the Employment Ordinance, which is the main piece of legislation governing conditions of employment in Hong Kong. The Employment Ordinance highlights employees’ rights as well as duties and responsibilities of employers and employees.
In Hong Kong, the Employment Act separates employees into two categories, which are:
- Employees employed under a continuous employment contact (entitled to all the statutory benefits under the Employment Ordinance); and
- Employees employed under an employment contract (entitled to basic protection under the Employment Ordinance).
An employee who has been employed continuously by the same employer for four weeks or more, with at least 18 hours worked in each week is regarded as being employed under a continuous contract.
| Rights and Obligations of Employers and Employees | ||
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Employment contract |
Continuous employment contract |
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Maximum work hours/week |
Per contract (normally 40-50 hours) |
Per contract (normally 40-50 hours) |
|
Maximum workdays/week |
Per contract (normally 5 days) |
Per contract (normally 5 days) |
|
Overtime |
Per contract |
Per contract |
|
Public holidays (paid) |
12 Days |
12 Days |
|
Annual leave (paid) |
Not applicable |
1st Year: 7 days. 2nd Year: 8 days. |
|
Sick leave (paid) |
Not applicable |
1st Year: 24 days |
|
Maternity leave (paid) |
Not applicable |
10 weeks, subject to certain conditions. |
|
Year-end bonus |
Not applicable |
Per contract |
|
Medical insurance |
Per contract |
Per contract |
|
Mandatory provident fund (MPF) contribution |
Required |
Required |
|
Probation |
Per contract (normally 1-6 months) |
Per contract (normally 1-6 months) |
|
Long service payment |
Not applicable |
Minimum 5 years of work (subject to conditions) |
Preparing written employment contracts
While employees’ rights and benefits are protected under the Ordinance irrespective of whether the employment contract is made verbally or in writing, employers and employees are encouraged to enter into written employment contracts, which remind both parties of their obligations, and help avoid possible disputes.
Employers and employees are free to negotiate and agree on the terms and conditions of employment with reference to a company's own system of compensation and benefits provided that they do not violate the provisions of the Employment Ordinance (Cap. 57).
An employer must inform each employee clearly the conditions of employment under which he is to be employed before employment begins with regard to:
- wages (including rate of wages, overtime rate and any allowance, whether calculated by the piece, job, hour, day, week or otherwise);
- wage period;
- length of notice required to terminate the contract; and
- if the employee is entitled to an end of year payment, the end of year payment or proportion and the payment period.
If the contract of employment is in writing, the employer shall give one copy of the written contract to the employee for retention and reference. If the contract of employment is not in writing, the employer shall provide the employee with such information in writing if the employee, before such employment is entered into, makes a written request.
[tips title="Did You Know"]An employer who fails to comply with the above requirements is liable to prosecution and, upon conviction, to a fine of US$10,000. [/tips]
Employment age
The legal age for working in Hong Kong is 18 years old and above. Children and teenagers between the ages of 13 and 17 can also work in specific types of job. At the moment, Hong Kong does not currently have a mandatory retirement age. However, the common practice is for employees to retire by the age of 65-years.
Hiring part-time employees and contractual staff
Part-time or contract employees are not formally defined in the Employment Ordinance. However, part-time staff usually work fewer hours than full-time staff. Contract workers refer to workers who sign fixed-term labor contracts. Under Hong Kong's Employment Ordinance, part-time and contract employees enjoy the same protection as permanent full-time employees.
Hiring foreign employees
The Hong Kong government strongly advocates that employers should first consider hiring the local employees to fill job vacancies. However, foreigners with special skills, knowledge, or experience that are needed by Hong Kong are allowed to enter and stay in Hong Kong for employment as professionals.
A foreigner must have a valid work visa to be able to work in Hong Kong.
|
Types of Visas for Foreign Employees |
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|
Employment visa |
Supplementary labor scheme visa |
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Foreign professional staff who have graduated from an academic institute in Hong Kong as well as foreign professional staff and mainland Chinese who have not graduated from Hong Kong but possess special skills, knowledge, or experience needed by Hong Kong. |
Semi-skilled professionals at technician level or below.
|
|
Valid for 1 year initially (renewable) |
Valid for 1 year initially (not renewable) |
