Employment contracts Hong Kong

What should an employment contract in Hong Kong include?

An employment contract in Hong Kong should entail the following information:

• Details and contact info of the employer and employee.
• Employee’s job role and responsibilities.
• Set working hours and days.
• Agreed-upon salary, additional benefits, and bonuses.
• Terms for ending the employment with notice periods for both.
• Mutual agreements on confidentiality and non-disclosure.

Both the employer and employee should thoroughly go through the terms of the employment agreement before signing.

What types of employment contracts exist in Hong Kong?

There are various categories into which employment contracts in Hong Kong can be classified.

1. Employee contracts

Employee contracts can be further divided into two categories:

• Permanent employment contract: This is a standard and indefinite employment arrangement with no fixed end date. Permanent employees are entitled to all statutory benefits under the Employment Ordinance. This type of contract is typically established when an employee has been employed by the same employer for four weeks or longer, with at least 18 hours each week.
• Fixed-term employment contract: Contracts with a predetermined end date or a specific duration fall under this category. Fixed-term contracts are common for project-based work or temporary positions. The employment contract is valid for one month and is renewed on a monthly basis. 

2. Job contract

In job contracts, the focus is on the particular task or project an employee is assigned, not how long they work. Once the project is done, the job ends, and the company needs to give the employee severance pay. There are no trial periods allowed with this contract.

How to hire employees in Hong Kong? 

Typically, when hiring employees in Hong Kong, it’s necessary to set up your company legally by registering with the authorities in Hong Kong and getting a business registration number. You also need to comply with local laws, which can be a daunting task. 

However, with Native Teams’ Employer of Record services, you can concentrate on your daily business tasks while we handle all the administrative tasks regarding the hiring process. We offer guidance for compliant hiring in Hong Kong and 65+ other countries worldwide.