Current Region & Language
Current Region & Language
Current Region & Language
Currency
Hong Kong Dollar (HKD)
Employer Taxes
Employer contributions for MPF are 5% of employee salaries.
Payroll Frequency
Monthly
Language
Cantonese, English
Date Format
DD/MM/YYYY
Hong Kong By The Numbers
7.5 million
Population
HKD 2.5 trillion
GDP
11
National Holidays
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Weekly Working Hours
National Holidays
Leave
In Hong Kong, employees are entitled to 7 to 14 days of paid annual leave each year, depending on their years of service. For maternity leave, employees who have been employed under a continuous contract for at least 40 weeks before the scheduled maternity leave are entitled to 40 weeks of paid leave. The daily maternity leave pay is calculated as four-fifths of the average daily wages earned in the 12 months prior to the leave. If employed for less than 12 months, the calculation is based on the shorter period. The maternity leave pay for the 11th to 14th week is capped at HKD 80,000. Additionally, employees are entitled to rest days and sickness allowance as part of their benefits.
Employment Contracts
No. There is no legal mandate to have a written employment contract.
Types of Employment
There are two types of employment: Employees and Independent Contractors.
Employment Costs
There are no specific requirements regarding employment costs.
IC Class Factors
The classification of an independent contractor (IC) is influenced by several key factors. These include how the IC establishes their business (e.g., as a separate legal entity or sole proprietorship), and whether the IC has the discretion to select working hours and location. Additionally, the level of instruction from the client regarding how services should be performed is a significant consideration. The responsibility for providing the tools necessary to perform the work—whether it is the client or the IC—is also important. Another factor is whether the IC has the requisite skills to perform the services without requiring training. Furthermore, whether the IC is hired to deliver specific results or not, and the structure of the compensation are critical factors. The IC’s past engagement with the client, especially as a former employee, also plays a role in the classification. The IC’s right of substitution, meaning whether they can bring in others to complete the work, and their ability to work with other clients during the engagement, are also considered.
Labor Leasing
An employment agency license required for obtaining employment for another person or supplying the labor of another person to an employer.
Minimum Wage Requirements
The statutory minimum wage in Hong Kong is set at $40 HKD per hour.
Medical Benefits
There are no specific requirements regarding medical benefits.
Probationary Periods
Probationary periods (typically lasting 3 to 6 months) are common but not mandatory. Either party can terminate the contract during the first month. Employers are not required to give notice for termination in the first month of probation.
Termination Notice
During the first month of the probationary period, either party can terminate the employment contract without notice, even if the contract specifies a notice period.
After the probationary period, the notice period is as specified in the employment agreement, but it must be at least 7 days. If the contract does not specify a notice period, it is presumed to be 1 month.
Summary termination without notice or payment in lieu of notice is possible only in cases of gross misconduct, which is a high threshold.
Both the employer and employee have the right to terminate the employment by making a payment in lieu of notice, and the right to place the employee on garden leave depends on the contract terms.
Severance
There are no specific requirements regarding severance.
Pre-hire Checks
A right to work check is required to ascertain that the candidate had legal right to work in Hong Kong. Other checks such as criminal records, medical history, references etc. can be conducted by complying with the privacy laws of Hong Kong.
Data collected for pre-hire checks must be necessary and not excessive. To comply with the Personal Data Privacy Ordinance, candidates are to be informed about the purpose of collection, potential classes of transferees, whether it is mandatory or voluntary to provide the date and, if mandatory, the consequences of failure to do so, their rights to access and correct the personal data collected, and the details of the person(s) to whom access requests should be made.
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The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
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