Hong Kong HR Information

Updated on: 2025/08/04 14:03 (UTC)

Overview

The central statute governing employment relations is the Employment Ordinance. Other relevant statutes include the Disability Discrimination Ordinance, the Employees’ Compensation Ordinance, the Family Status Discrimination Ordinance, the Labor Relations Ordinance, the Occupational Safety and Health Ordinance, the Race Discrimination Ordinance, the Sex Discrimination Ordinance and the Trade Unions Ordinance.

Hiring

Employment Contracts

An employment contract may be written or oral. If the contract is in writing, the employer must provide the employee with a copy.

Whether or not the contract is in writing, the employer must inform a new employee of the following terms before employment begins:

• wages,
• wage period,
• length of notice required for termination, and
• if the employee is entitled to a yearend bonus, the amount of the bonus and the payment period.

If the employment contract is not in writing, the employer must provide this information in writing if the employee makes a written request for it before employment begins.

If the duration of the contract is longer than one month, the contract is deemed to be a contract for one month automatically renewable from month to month.

Hong Kong law allows a three-month probationary period. During the first month of the probation period, either the employee or the employer may terminate the employment contract without giving notice.

Temporary Workers. The Employment Ordinance does not differentiate among temporary, part-time, substitute, permanent and full-time employees. All employees covered by the Employment Ordinance are covered by its provisions.

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 further entitled to rights such as rest days, annual leave with pay and sick leave.

Restrictions on Hiring

The minimum legal age for employment is 15.

Persons 15 to 17 years of age may work no more than eight hours a day, six days a week and may not work at night, underground or in a job deemed dangerous.

Recordkeeping

Employers are required to keep written records of the wages and employment history of each employee for at least the preceding 12 months. The records must include for each active employee:

• name and identity card number;
• date employment began;
• job title;
• wages paid for each wage period;
• applicable wage period;
• amount of annual leave, sick leave, maternity leave and holidays to which the employee is entitled;
• amount of leave taken and any payments made with respect to such leave;
• amount of yearend bonus and period to which it relates;
• period of notice required for termination; and
• if applicable, date of termination.

The records must be kept at the employer’s place of business and must be retained for at least six months after an employee leaves the company.

Background Checks

There are no specific statutes that govern background checks.

Noncompetition Agreements

Noncompetition agreements are valid only if the employer demonstrates that post-employment restrictions are limited to those reasonably necessary to protect the employer’s legitimate proprietary business interests and are not unduly injurious to the interests of the employee and the public. The employer’s legitimate proprietary business interests are limited to protecting trade secrets, confidential information and the employer’s client base. Post-employment restrictions must be reasonable in terms of scope and the length of time covered by the restrictions.

In evaluating the reasonableness of a noncompetition agreement, courts consider factors such as:

• whether the employee’s job involved access to confidential information,
• whether the scope of the restrictions imposed exceeds the scope of the employee’s work for the employer,
• the duration and geographic scope of the agreement,
• any payments to the employee during the term of the noncompetition agreement,
• any acknowledgment by the parties that the agreement is reasonable and
• if the employee was terminated, whether the employer had lawful grounds for doing so.

The Competition Ordinance, which went into effect in 2015, discourages employers from agreements that prevent, restrict or distort competition in Hong Kong.

Reference Citations

Employment Contracts: Employment Ordinance, 1997, ch. 57, §§ 2, 5, 6(3), 44, 76

Restrictions on Hiring: Employment Rights for Young Persons

Recordkeeping: Employment Ordinance, 1997, ch. 57, § 49A

Noncompetition Agreements: Competition Ordinance, 2015, ch. 619, § 6

Immigration and Work Permits

In General

Anyone seeking to work in Hong Kong must obtain an employment visa from the Immigration Department. The applicant must have the sponsorship of a Hong Kong company or a foreign-based company registered in Hong Kong and possess relevant skills, knowledge or experience the employer cannot find among local applicants.

Visas and Work Permits

Foreign nationals seeking to enter Hong Kong to give a speech or presentation may do so without obtaining an employment permit, as long as:

• the duration of the stay is no longer than seven days,
• the visitor is not paid for the speaking engagement (other than expenses for travel and meals), and
• the visitor has only one speaking engagement during the stay.

Otherwise, foreign nationals from about 170 countries may visit Hong Kong without a visa for up to 180 days to take part in the following activities:

• conclude contracts or submit tenders;
• examine the installation or packing of goods or equipment;
• participate in exhibits or trade fairs;
• settle civil proceedings;
• participate in product orientations; and
• attend short-term seminars or other business meetings.

Anyone seeking to work in Hong Kong must obtain an employment visa from the Immigration Department. Applications for work visas can be made under the General Employment Policy (GEP). The applicant must have a confirmed letter of employment from a Hong Kong company or a foreign-based company registered in Hong Kong and possess relevant skills, knowledge or experience the employer cannot find among local applicants. The employer must show that there is a genuine job vacancy and that the prospective employee’s pay will be on par with the market rate for similar professionals in Hong Kong.

Application forms can be accessed online from the Hong Kong Immigration Department.

Visas typically are granted for two years, but can be renewed for one or more three-year periods. The employee does not need to leave Hong Kong to apply for a renewal.

Employees admitted under the GEP may apply to bring their spouse and unmarried dependent children under the age of 18 to Hong Kong. Applications for admission of dependents are more likely to be considered favorably if the following criteria are met:

• there is reasonable proof of a genuine relationship between the dependent and the sponsor,
• there is no known record of the dependent being a detriment to the employee and
• the sponsor is able to support the dependent at a standard well above the subsistence level and provide him or her with suitable accommodation in Hong Kong.

The employee will be the sponsor of the accompanying dependents if their application is approved.

Immigration authorities accept applications for dependent visas from same-sex spouses who are legally married in countries where the relationship is legally recognized.

Penalties

Hong Kong imposes strong sanctions for violating its immigration laws. Penalties range up to HK$350,000 and three years’ imprisonment for employing persons who are not lawfully employable.

Reference Citations

Visas and Work Permits: General Employment Policy (GEP)

Penalties: Immigration Ordinance, Ch. 115, § 37D

Nondiscrimination

In General

Employers may not discriminate against employees or prospective employees on the basis of sex, marital status, pregnancy, disability, family status, race, color, descent and national or ethnic origin. Discrimination is defined to include both disparate treatment and disparate impact.

Workers can take discrimination complaints to the Equal Opportunities Commission, which will seek to settle them through conciliation, or can file claims in the District Court.

Disability Discrimination

Subject to various exceptions, Hong Kong bars discrimination based on disability in recruiting, terms of employment, promotions and dismissal.

The Disability Discrimination Ordinance prohibits harassment as well as discrimination. Disability harassment is defined as making statements or engaging in other unwelcome conduct because of the disability of another person or the disability of an associate of that person under circumstances in which a reasonable person would have anticipated that the other person would be offended, humiliated or intimidated.

Gender Discrimination

Subject to various exceptions, Hong Kong bars discrimination based on sex, marital status and pregnancy in recruiting, terms of employment, promotions and dismissal.

The Sex Discrimination Ordinance prohibits harassment as well as discrimination. Sexual harassment is defined as:

• unwelcome sexual advances or requests for sexual favors;
• statements or other conduct of a sexual nature made under circumstances in which a reasonable person would have anticipated the other person would be offended, humiliated or intimidated or
• statements or other conduct of a sexual nature that creates a hostile or intimidating working environment.

Effective June 19, 2021, it will be unlawful to directly or indirectly discriminate against breastfeeding women, or to victimize them for breastfeeding.

Pay Discrimination

Under the Sex Discrimination Ordinance, it is unlawful to discriminate on the grounds of sex in the terms and conditions of employment, and employers are encouraged to maintain the principle of equal pay for equal work.

Race Discrimination

The Race Discrimination Ordinance prohibits racial harassment as well as race discrimination. Racial harassment is defined as either:

• making statements or engaging in other conduct because of the race of another person or of a near relative of that person under circumstances in which a reasonable person would have anticipated that the other person would be offended, humiliated or intimidated or
• making statements or engaging in other conduct because of the race of another person or of a near relative of that person that creates a racially hostile or intimidating working environment.

Reference Citations

Disability Discrimination: Disability Discrimination Ordinance, 1995, ch. 487, § 11

Gender Discrimination: Sex Discrimination Ordinance, 1995, ch. 480, §§ 3, 23

Pay Discrimination: Sex Discrimination Ordinance, 1995, ch. 480, § 11

Race Discrimination: Race Discrimination Ordinance, 2008, ch. 602, § 10, 24

Employee Privacy

Employee Data

Employees who are subject to personal data collection must be informed about:

• the purpose of the data processing,
• how the data will be collected,
• whether the data will be transferred to third parties and the reason for the transfer, and
• their rights as data subjects.

Employee data may only be used for the stated purpose. If it is used in any other way, the employer must obtain employees’ express consent.

Employees are entitled to request a copy of the data that the employer holds about them and request corrections to the information. Employers must provide the name of the individual who will handle data access and correction requests. The requested data must be provided to the employee within 40 days.

Employers cannot transfer employee data outside Hong Kong except when:

• the employer has reasonable grounds for believing that the destination jurisdiction has substantially similar provisions to those in Hong Kong;
• the employee consents in writing to the transfer; or
• the employer has taken all reasonable precautions to ensure that the employee data will not be used in a manner which will contravene the privacy law of Hong Kong.

Employee Monitoring and Surveillance

Employers may monitor employee Internet and e-mail usage and use video recording equipment for workplace monitoring but are required to develop a written policy for such monitoring and must inform employees of the policy. Employers are encouraged in developing such policies to weigh whether the purpose of the monitoring, such as managing workplace productivity or protecting intellectual property rights, is worth the potential intrusions on employee privacy.

Employers are also encouraged to assess whether the monitoring is fair and reasonable, taking into consideration whether it is necessary to meet a legitimate purpose related to the business and how it can be kept to a minimum and done by the least intrusive means possible. Employers are required to develop privacy policies that protect employee information collected during monitoring.

Reference Citations

Employee Data: Personal Data Privacy Ordinance, 1196, as amended, arts. 20-30

Monitoring and Surveillance of Employees: Privacy Guidelines: Monitoring and Personal Data Privacy at Work

Compensation

Hours of Work

Hong Kong law does not expressly spell out the length of the workday, nor does it require employers to provide rest breaks, but the Labour Department’s Guide on Rest Breaks encourages employers to allow them. The guide points out that employers have the duty under the Occupational and Health Ordinance to take reasonable steps to ensure the safety and health of employees at work and that working long hours continuously without any break can result in safety and health problems.

Persons 15 to 17 years of age may work no more than eight hours a day, six days a week and may not work at night.

Employees are entitled to at least one day of rest every seven days. The day of rest may be scheduled at the convenience of the employer and need not be the same day every week. Rest days may be with or without pay, as negotiated between the employer and the employee.

If a holiday falls on a rest day, the employee is entitled to take the holiday on the day following the rest day.

An employer may not require an employee to work on a rest day except in an unforeseen emergency. When an employer requires work on a rest day, the employer must provide another rest day within 30 days. Employees may voluntarily choose to work on a rest day, however.

Minimum Wage

Effective May 1, 2023, the hourly minimum wage is HK$40.00. From May 1, 2019, the minimum wage was HK$37.50 per hour.

The law applies to all employees, whether they are full-time, part-time or casual employees, and regardless of whether they are employed under a “continuous contract,” except for domestic workers and certain other categories of workers such as apprentices or seafarers. The Employment Ordinance defines an employee on a continuous contract as one who has been working under an employment contract with the same employer for four weeks or more and has worked for 18 hours or more each week.

The minimum wage ordinance covers employees with disabilities as well as nondisabled workers, although the law provides that employees with disabilities may choose to undergo a productivity assessment to determine whether they should be paid at a rate not lower than the statutory minimum or at a rate based on their productivity.

Overtime

There is no law in Hong Kong establishing a standard workday or workweek, setting a maximum number of work hours or requiring payment of overtime. Such matters may be negotiated between the employer and the employee.

Wage Payment

Wages must be paid no later than seven days after the end of a wage period.

If wages are not paid within one month after the end of a wage period, the employee may deem employment to have been terminated without notice. Under such circumstances, the employee is entitled to wages in lieu of notice of termination in addition to any other statutory or contractual severance payments.

Payroll deductions are permitted only for the following:

• absences from work;
• damage due to negligence to the employer’s property, equipment or goods or loss of money for which the employee is required to account, not to exceed HK$300 or 25 percent of the wages otherwise due to the employee in the pay period;
• any pay advance or overpayment of wages, not to exceed 25 percent of the wages otherwise due to the employee in the pay period;
• the value of meals provided by the employer at the employee’s request;
• the value of accommodations provided by the employer to the employee or his or her family;
• payments authorized by the employee for medical, retirement or savings plans;
• payments authorized by the employee to repay a loan from the employer and
• any other deductions authorized by law or court order.

Except for absence from work and court-ordered deductions for maintenance payments, the total amount of payroll deductions may not exceed half of the employee’s pay.

Mandatory Bonuses

Although not required by law, many employers in Hong Kong give employees a bonus at the end of the year. The employment contract may provide, either orally or in writing, for payment of a year-end bonus. If no bonus amount is set forth in the contract, the bonus consists of one month’s pay, equal to the employee’s average monthly pay over the 12-month period prior to payment of the bonus.

Reference Citations

Hours of Work: Employment Ordinance, 1997, ch. 57, §§ 17-18

Minimum Wage: Statutory Minimum Wage Ordinance, Ch. 608

Wage Payment: Employment Ordinance, 1997, ch. 57, §§ 22-25, 32

Benefits

Vacation

Employees who have been continuously employed by the same employer for at least 12 months are entitled to paid annual leave. Employees with less than three years’ seniority are entitled to seven days of paid leave per year, those with three years’ seniority to eight days plus an extra day for each additional year of employment up to a maximum 14 days of paid leave when they reach nine or more years of seniority. At least seven days of annual leave should be taken consecutively.

In cases where the employer wants the employee to take leave on a specific day, it should consult with the employee to gain his or her consent and, if an agreement on the leave period is reached, issue a written confirmation to the employee at least 14 days prior to the commencement of the leave.

Any accrued annual leave must be taken within 12 months. An employee may elect to accept payment in lieu of any portion of annual leave that exceeds 10 days.

Holidays

Employees are entitled to 14 statutory holidays, the dates of some of which vary year to year depending on the lunar calendar:

• Jan. 1: New Year’s Day
• Lunar New Year (first three days, dates varies)
• Ching Ming Festival (date varies)
• May 1: Labor Day
• Birthday of the Buddha (date varies)
• Tuen Ng Festival (date varies)
• July 1: Hong Kong Special Administrative Region Establishment Day
• Oct. 1: National Day
• Chinese Mid-Autumn Festival (date varies)
• Chung Yeung Festival (date varies)
• Dec. 25: Christmas Day or the Chinese Winter Solstice Festival (date varies) at the option of the employer
• First weekday after Christmas Day

In July 2021, the Hong Kong Legislative Council passed the Employment (Amendment) Bill 2021. Starting from January 1, 2022, the number of statutory holidays will progressively increase from the existing 12 days to 17 days to align with that of general holidays. The five additional statutory holidays will take effect in the following sequence: the Birthday of the Buddha from January 1, 2022; the first weekday after Christmas Day from January 1, 2024; Easter Monday from January 1, 2026; Good Friday from January 1, 2028 and the day following Good Friday from January 1, 2030.

If any of the first three days of the Lunar New Year occurs on a Sunday, the day off is the fourth day of Lunar New Year. If the day after the Chinese Mid-Autumn Festival is a Sunday, the second day following that festival will be substituted as a day off with pay.

Employees are entitled to holiday pay if they have been continuously employed by the same company for at least three months prior to the holiday.

If a holiday falls on a rest day, the employee is entitled to take the holiday on the day following the rest day. If an employer requires an employee to work on a holiday, the employer must give the employee at least 48 hours notice and arrange an alternative holiday within 60 days before or after that holiday.

An employer cannot make payment to an employee in lieu of a statutory holiday.

Maternity Leave

Pregnant employees with at least four weeks of service with the employer are entitled to 14 weeks of maternity leave, which can begin any time between two and four weeks prior to the expected delivery date. A worker who at the beginning of maternity leave has been employed continuously by her present employer for at least the prior 40 weeks is entitled to 80 percent of her regular pay during the leave. For employees with less seniority, maternity leave is unpaid unless an individual employment contract provides otherwise.

If the employee experiences illness or disability as a result of pregnancy or child delivery, an additional period of leave of up to four weeks may be taken.

Employers generally may not terminate pregnant employees from the date pregnancy is confirmed by a medical certificate until the date the employee is scheduled to return to work from maternity leave. A pregnant employee may be terminated for serious misconduct, however, or during the employee’s probationary period if the termination is unrelated to the employee’s pregnancy. Employers that terminate an employee in violation of the maternity provisions of the Employment Ordinance may be subject to criminal prosecution and fines.

If a pregnant employee produces a medical certificate attesting that performance of specified heavy, hazardous or harmful work would be injurious to her pregnancy, the employer may not assign such work to the employee. If the employee is currently performing such work, the employer must eliminate it from the employee’s duties within two weeks. If the removal of such work from an employee’s duties results in a reduction of pay, the employee’s maternity leave pay must be based on her income prior to the change.

Time off work for medical appointments related to the pregnancy is treated as sick leave.

There are no special rules relating to adoption under Hong Kong employment law.

Employees who suffer a miscarriage at or after 24 weeks of pregnancy may be eligible for maternity leave.

Paternity Leave

Working fathers are entitled to up to five days of paid paternity leave. To qualify, the employee must:

• be the father of the child,
• have been employed under a continuous contract, and
• have given the required notification to the employer.

The employee must notify his employer of:

• his intention to take paternity leave at least three months before the expected date of delivery of the child, and
• the date of his paternity leave before taking the leave.

If the employee fails to give the three months’ advance notice to the employer, he must notify the employer of his date of paternity leave at least 5 days before that date.

Employees who have been in continuous employment for at least 40 weeks receive 80 percent of their average daily wage during paternity leave. Employees without 40 weeks’ continuous employment do not receive pay during paternity leave.

Sick Leave

Employees accrue two days of paid sick leave for each month of employment during the first year, four days for each month of employment thereafter. A maximum of 120 days of sick leave may be accumulated.

An employee does not receive pay while on sick leave unless the employee takes at least four consecutive days and has submitted an appropriate medical certificate. The pay rate for sick leave is 80 percent of regular pay.

The definition of sickness day includes inability to attend work due to a quarantine order, isolation order, or restriction-testing declaration aimed at preventing the spread of a disease.

The employer must keep a written record of sick leave taken, which should be signed by the employee within seven days of his or her return to work.

An employer may not terminate an employee who is on sick leave except for cause.

Other Leave

Editor’s note: This information is not available at this time.

Pensions and Social Security

Employers and employees make contributions to Mandatory Provident Fund Schemes, which are privately managed retirement plans. With MPF schemes, an employee can invest the funds in the account in a variety of investment products and when changing jobs can transfer the funds to the new employer’s MPF scheme or a personal MPF account or keep the funds in the account in the original employer’s scheme.

A person who is age 65 or who takes early retirement at age 60 can withdraw funds from MPF accounts. If the employee dies before retirement, the funds go to the employee’s survivors. An employee who leaves Hong Kong permanently before retirement may withdraw the funds in the MPF accounts.

Other benefits for Hong Kong residents over the age of 65 are provided under government programs, such as the Social Security Allowance Scheme and Comprehensive Social Security Assistance, which have various residency requirements and asset limitations depending on the program. Employers and employees make no contributions to these programs.

Workers’ Compensation

The Employees’ Compensation Ordinance requires employers to obtain insurance to provide compensation to an employee who sustains a work-related injury or illness. The employer bears the cost of such insurance without contributions from employees. Under the ordinance, the employer is liable to pay compensation for injuries caused by employee negligence, but not for injuries that are deliberately caused by the employee. The employer is not liable to pay compensation for an injury caused by an accident attributable to the employee’s drug addiction or use of alcohol unless the accident resulted in the employee’s serious and permanent disability or death.

An employee is required to notify the employer of the accident as soon as possible. The employer is required to report all work-related injuries or illnesses to the Labour Department within seven days if the worker has died and within 14 days if the accident or illness resulted in a temporary or permanent incapacity.

There are special levels of compensation for certain diseases, such as mesothelioma and pneumoconiosis.

Temporary incapacity. Injuries or illnesses that result in a temporary incapacity are treated differently depending on the length of incapacity. If the loss of work is for three days or less, the employer determines the amount of compensation and pays the employee on the next payday. Any dispute over such compensation may be taken to the Small Claims Tribunal or the District Court. If the incapacity lasts between three and seven days, the employer and the employee negotiate the compensation due under the ordinance. If the parties cannot come to an agreement, the employee may file suit in District Court.

When an injury or illness results in incapacity lasting longer than seven days, the Labour Department determines the compensation that is due under the ordinance and will issue a certificate of assessment. If either party objects to the assessment, objections must be filed within 14 days. The employer must begin periodic payments within 21 days of receiving the certificate of assessment.

Benefits for a temporary work-related disability are 80 percent of the difference between the employee’s wages at the time of the accident or illness and what he or she is capable of earning during the period of incapacity. Benefits are paid periodically—at the same times as the worker would have received regular pay—for up to 36 months, after which the worker is considered to have suffered a permanent disability. The employer must also pay any medical expenses necessary to treat the injury or illness.

Permanent incapacity. When an injury or illness results in an incapacity lasting longer than seven days and the Labour Department determines that permanent disability is likely to result, the case is referred to the Employees’ Compensation (Ordinary Assessment) Board for assessment and determination of the amount due. The employer must pay that amount plus medical expenses within 21 days of receiving a certificate of assessment. Any party who objects to the assessment may appeal to the Labour Department and, if still dissatisfied after review, may file suit in District Court.

Death. If the employee dies as a result of a work-related injury or illness, the employer must pay compensation to the employee’s heirs.

Reference Citations

Vacation: Employment Ordinance, 1997, ch. 57, §§ 41A-41E

Holidays: Employment Ordinance, 1997, ch. 57, §§ 41A, 41B, 41C, 41E

Maternity Leave: Employment Ordinance, 1997, ch. 57, §§ 12-15

Paternity Leave: Employment Ordinance, 1997, ch. 57, §§ 15E-15I; Employment Ordinance No. 3, 2018 Employment Order No. 3 Commencement Notice, 2018

Sick Leave: Employment Ordinance, 1997, ch. 57, §§ 33-37

Workers’ Compensation: Employees’ Compensation Ordinance, Ch. 282

Labor Relations

In General

While every employee has the right to join a union, to engage in union activities and to associate with others for the purpose of forming a union, collective bargaining is voluntary, and collective bargaining agreements are not legally binding. Employers are prohibited from preventing or deterring employees from exercising their right to organize. Unions and individual employees may engage in peaceful picketing.

Right to Organize

Hong Kong’s Basic Law, which serves as its constitution, grants residents “the right and freedom to form and join trade unions, and to strike.”

The Employment Ordinance further grants every employee the right to join a union, to engage in union activities and to associate with others for the purpose of forming a union. Employers are prohibited from preventing or deterring employees from exercising such rights, may not terminate or otherwise discriminate against an employee who chooses to exercise such rights and may not make an offer of employment contingent on the employee’s agreement not to exercise such rights.

An employer in Hong Kong has no duty to bargain with a union that represents any of its employees. Collective bargaining is purely voluntary, and any collective bargaining agreements reached are not legally binding.

Consequently, union membership is low, collective bargaining agreements are uncommon and union-organized strikes or other work disruptions are rare.

Dispute Resolution

When the Labour Department is informed of a dispute, it may ask the parties to agree to engage in voluntary conciliation, in which a conciliator will work with the parties to get them to reach an agreement settling the dispute. Alternatively, the department may without the consent of the parties appoint a mediator or mediation board to investigate and hear the dispute and make recommendations for its settlement. If no agreement is reached on these levels, the matter can be referred to the head of the Hong Kong government, the chief executive in council, who can refer the dispute to voluntary arbitration.

Workers can also take claims into the judicial system, though before taking a case to the Minor Employment Claims Adjudication Board or the Labour Tribunal, they must make an attempt at conciliation. Claims for unpaid wages, payment in lieu of notice of termination, severance or long-service payments or any other sums due under the Employment Ordinance or an employment contract are brought before the Minor Employment Claims Adjudication Board or the Labour Tribunal. A party dissatisfied with a decision of the Labour Tribunal may seek to appeal the decision in the Court of First Instance, which is part of Hong Kong’s High Court. A decision by the Court of First Instance not to hear an appeal is final.

Other employment-related disputes—including claims for better working conditions, enforcement of noncompetition agreements, discrimination claims and tort claims—must be filed in the Court of First Instance or the District Court, depending on the amount claimed.

Strikes and Lockouts

Hong Kong’s Basic Law, which serves as its constitution, grants residents “the right and freedom to form and join trade unions, and to strike.” The Employment Ordinance states that an employee’s participation in a strike does not constitute cause for termination.

The Trade Unions Ordinance authorizes unions and individual employees to engage in peaceful picketing.

Successorship Clauses

If a business is transferred from one owner to another, the period of employment of an employee in the business at the time of the transfer must count as a period of employment with the transferee and the transfer must not break the continuity of the period of employment.

Reference Citations

Right to Organize: Employment Ordinance, 1997, ch. 57, § 21B

Dispute Resolution: Minor Employment Claims Adjudication Board Ordinance, 2013, ch. 453, § 5

Strikes and Lockouts: Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China, 1990, art. 27; Employment Ordinance, 1997, ch. 57, § 9(2)

Successorship Clauses: Employment Ordinance, 1997, ch. 57, schedule 1(5)

Safety, Health and Security

In General

Every employer must ensure the safety and health at work of all employees.

Smoking is prohibited in indoor areas of any workplace.

Employers may monitor employee Internet and e-mail usage and use video recording equipment for workplace monitoring but are required to develop a written policy for such monitoring and must inform employees of the policy.

Workplace Safety and Health

The Occupational Safety and Health Ordinance requires that every employer, so far as is reasonably practicable, ensure the safety and health at work of all employees. Employers must provide or maintain safe facilities and work systems and provide workers with occupational safety and health information and training. Employers that fail to provide a safe workplace can face work suspensions, fines and even imprisonment.

Drug and Alcohol Use

The Smoking (Public Health) Ordinance bars smoking on public transportation, in most public areas and in indoor areas of any workplace.

Reference Citations

Workplace Safety and Health: Occupational Safety and Health Ordinance, 1997, ch. 509, § 6

Drug and Alcohol Use: Smoking (Public Health) Ordinance, 1982, ch. 371, Schedule 2, Part 1 (20)

Termination

Termination by Employer

Either party to an employment contract can terminate the contract without cause, provided that the proper advance notice or payment in lieu of notice is given. When an employer has cause for termination, however, an employee may be summarily terminated without advance notice. An employer has cause for termination if the employee:

• willfully disobeys a lawful and reasonable order,
• engages in misconduct that is inconsistent with the faithful discharge of the employee’s duties,
• engages in fraud or dishonesty,
• fails to comply with an employer’s legitimate vaccination request; or
• is habitually neglectful.

Employees cannot be dismissed for:

• participating in a strike; or
• failing to attend work due to a quarantine order, isolation order, or restriction-testing declaration aimed at preventing the spread of a disease.

Employers must comply with the following restrictions on termination:

• pregnant employees who have notified the employer of the pregnancy may not be terminated except for cause;
• employees who are on paid sick leave may not be terminated except for cause;
• employees may not be terminated because they have provided evidence or information in connection with enforcement of labor legislation, industrial accidents or breach of work safety regulations;
• employees may not be terminated because of union membership or union activities and
• employees who have suffered a work-related illness or injury may not be terminated before the employer has made an agreement to compensate the employee for the illness or injury or before the issuance of a certificate of assessment.

If cause for termination or resignation does not exist, the employment contract may be terminated by the employer or the employee by giving proper notice, by making payment in lieu of such notice or by giving a combination of notice and partial payment in lieu of notice. The length of notice required depends on whether the employee is on probation and whether there is an employment contract specifying the amount of notice. The notice period may not include periods of maternity leave or annual leave. Pursuant to case law, employees may choose to take annual leave during the notice period, but employers cannot require them to do so.

If the employee is in the first month of probation, no notice is required. If the employee is on probation but has worked for more than one month, at least seven days’ notice is required and more if so specified in the employment contract.

If there is no probationary period or the employee has completed probation and the employment contract specifies the amount of notice, the parties must give the amount of notice provided for in the employment contract, but this cannot be less than seven days. If the employment contract does not specify notice, the parties must give at least one month’s notice.

In lieu of notice, either party may pay the other party the employee’s wages for the length of the relevant notice period. The applicable wages are the employee’s average wage over the preceding 12 months. Such wages include overtime pay only if overtime pay made up at least 20 percent of the employee’s pay during the preceding 12 months.

A worker can make an unfair dismissal claim before the Labor Tribunal, and if the employer cannot provide a valid reason for the dismissal, the tribunal may order that the worker be reinstated or rehired by the employer or may require the employer to pay the worker any wages and/or benefits that are owed plus damages for the unfair dismissal. Should the employer not reinstate the employee as required by the order, the employer must pay to the employee a further sum set at three times the employee’s average monthly wages subject to a maximum limit. Employers that willfully and without reasonable excuse fail to pay this further sum commit a criminal offense and can be subject to additional fines and 3 years of imprisonment.

Termination by Employee

Either party to an employment contract can terminate the contract without cause, provided that the proper advance notice or payment in lieu of notice is given. An employee has cause to resign without notice if he or she:

• reasonably fears physical danger by means of violence or disease that was not contemplated in the contract of employment,
• is subjected to ill treatment by the employer,
• has been employed for at least five years and has been medically certified as permanently unfit for the type of work he or she is performing or
• is not paid any wages within one month from the day on which they become due.

Plant Closings and Mass Layoffs

Under Hong Kong law, there are no special legal requirements governing reductions in force. Mass layoffs are not treated collectively, but as a series of individual layoffs.

Because Hong Kong anti-discrimination laws prohibit acts that have a disparate impact on protected classes, however, employers must ensure when laying off workers that they are treated equitably.

Payment on Termination

The payment required on termination depends on the employee’s length of service, the terms of the employment contract and the reason for termination.

The employer must pay the employee any outstanding wages, wages due in lieu of notice of termination, accrued annual leave, accrued end-of-year bonus, other payments required by the employment contract and where appropriate a long-service payment or severance payment.

With the exception of the severance payment, all payments on termination must be made within seven days of termination.

If an employer does not immediately make the severance payment to the employee, the employee can make a written claim for payment to the employer and the employer then has two months to make the payment.

If an employee has worked for an employer continuously for at least five years, the employer may be required to make a long-service payment. A long-service payment is required if:

• the employee has been terminated without cause and under circumstances that do not require payment of severance,
• the employee has resigned as a result of having been medically certified as permanently unfit for the type of work he or she is performing,
• the employee has resigned and is at least 65 years old, or
• the employee dies.

Employees are entitled to a severance payment if they are terminated solely for economic reasons after working for their employer for at least two years.

Employees who are terminated are presumed to have been terminated for economic reasons unless the employer proves otherwise. Employers must make the severance payment to the employee within two months of receiving written notice from the employee claiming such payment.

Employees entitled to a severance payment cannot receive a long-service payment. Employees can be denied severance and long-service payments if they unreasonably refuse a re-employment offer or have been dismissed for cause.

The formula for calculating severance and long-service payments is the same. In general, employees entitled to such payments must be paid either two-thirds of their last full month’s wages or two-thirds of HK$22,500 (whichever is less) for each year of service. The employer must provide the employee with a document explaining how the payment was calculated.

Unemployment Insurance

Although Hong Kong does not have an unemployment insurance program, unemployed persons, like others suffering financial hardship, may obtain benefits through Comprehensive Social Security Assistance.

Reference Citations

Termination by Employer: Employment Ordinance, 1997, ch. 57, §§ 6, 7, 9; Employment Ordinance Amendment, No. 2, 2018

Termination by Employee: Employment Ordinance, 1997, ch. 57, § 10

Payment on Termination: Employment Ordinance, 1997, ch. 57, §§ 31V, 31W, Schedule 7

Personal Taxes

Residency Requirements

Any person who receives Hong Kong-sourced income from earnings is subject to salaries tax. A taxpayer’s residence is not relevant except for tax treaty purposes. A person who visits Hong Kong for 60 days or less in a tax year, however, is not subject to tax on employment income.

Taxable Income

Generally, income derived from Hong Kong employment will be fully taxable in Hong Kong regardless of where the employee renders services. In addition to salary and wages, taxable income includes bonuses, gratuities and the cash value of certain benefits. If the employee has Hong Kong employment and is taxable on income for services performed in another country, that income is exempt from tax in Hong Kong if it has been taxed in the other country.

In general, work qualifies as non-Hong Kong employment if:

• the contract of employment was negotiated, entered into and is enforceable outside Hong Kong;
• the employer is not a Hong Kong resident and
• the employee’s remuneration is paid outside Hong Kong.

Tax Rates

Wages and salaries are taxed at progressive rates ranging from 2 percent to 17 percent depending on income.

The Mandatory Provident Fund Schemes Ordinance requires employers to contribute 5 percent of an employee’s “relevant income” up to a capped level to a retirement scheme that is established on a compulsory basis (except in certain circumstances where exemptions are granted to pre-existing pension schemes). Employees are also required to contribute the same amount to a retirement scheme.

Reference Citations

Taxable Income: Inland Revenue Ordinance, 1947, ch. 112, § 8

Web References

In English.

Law and Regulation

Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China

Employment Ordinance

Employment (Amendment) Ordinance 2010

Employment (Amendment) Ordinance 2014

Government Websites and Publications

GovHK (government portal)

GovHK, Employee Tax Obligations

Immigration Department, Immigration Guidelines for Entry to the Hong Kong Special Administrative Region of the People’s Republic of China

Information Services Department, Hong Kong: The Facts: Mandatory Provident Fund

Labour Department, A Concise Guide to the Employees’ Compensation Ordinance

Labour Department, A Concise Guide to the Employment Ordinance

Labour Department, Frequently Asked Questions About the Employment Ordinance, Cap. 57: Statutory Holidays

Labour Department, Guide on Rest Breaks

Labour Department, A Guide to the Labour Relations Ordinance

Labour Department, Proper Keeping of Wage and Employment Records

Labour Department, Statutory Paternity Leave

Social Welfare Department, Comprehensive Social Security Assistance (CSSA) Scheme