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Hong Kong is a global business hub with a dynamic workforce, making it an attractive destination for employers. However, hiring in Hong Kong requires understanding its labour laws, market dynamics, and cultural nuances to ensure compliance and successful recruitment. Hong Kong’s labour laws prioritise employee rights and employer obligations. The Employment Ordinance governs employment relationships, covering aspects like wages, working hours, leave entitlements, and termination procedures. Employers must also comply with anti-discrimination laws under the Sex Discrimination Ordinance, Disability Discrimination Ordinance, and Race Discrimination Ordinance.
Hong Kong’s workforce is highly skilled, multilingual, and accustomed to an international business environment. Cantonese and English are the primary business languages, and cultural considerations like respecting hierarchy and fostering relationships are essential in workplace dynamics. By adhering to these guidelines and respecting local customs, businesses can effectively navigate the hiring process in Hong Kong and tap into its talented labour pool.
Hong Kong is an excellent choice for finding remote employees due to its highly skilled workforce, robust infrastructure, and cosmopolitan environment. The city is home to a diverse and multilingual talent pool, with professionals proficient in English, Cantonese, and Mandarin, making it an ideal hub for international businesses.
Hong Kong’s emphasis on education and its world-class universities produce a steady stream of qualified candidates in various fields, including finance, technology, and marketing. Additionally, its advanced telecommunications and technological infrastructure support seamless remote work operations. Employees in Hong Kong are known for their strong work ethic, adaptability, and cultural understanding, which can enhance collaboration and productivity in global teams. Furthermore, Hong Kong’s time zone offers strategic overlap with many other regions, enabling effective communication across different markets.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Hong Kong. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
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Employers must follow a few essential laws and regulations to ensure a fully compliant employment process in Hong Kong.
Employment law in Hong Kong is primarily governed by the Employment Ordinance, which sets minimum employment standards and serves as the cornerstone of employee protection. It is supported by other legislation and common law principles that together define the rights and obligations of employers and employees.
The Employment Ordinance covers a broad range of employment matters, including:
The legal framework is also supported by supplementary legislation, including the Employees' Compensation Ordinance, which provides protection and compensation for employees in relation to work-related injuries, as well as the Occupational Safety and Health Ordinance, which establishes requirements relating to workplace safety and employee protection.
Hong Kong employment law also recognises employees' collective rights. Employees may form or join trade unions and participate in collective bargaining.
Hong Kong employment law distinguishes between continuous employment contracts and non-continuous employment contracts, rather than generally categorising contracts as indefinite or fixed-term.
Employees employed under continuous contracts are entitled to more comprehensive statutory protections, including rest days, paid annual leave, sickness allowances, and severance payments.
An employee is considered to be employed under a continuous contract if both of the following conditions are met:
If the employment contract does not specify a particular duration, it is automatically treated as a month-to-month contract, renewed each month on the same conditions.
A non-continuous contract refers to a work arrangement where the employee does not meet the requirements for continuous employment. As a result, the employee may not be entitled to the same level of statutory protection and benefits as an employee employed under a continuous contract.
In any dispute over whether an employment contract is a continuous contract, the employer bears the burden of proving that it is not a continuous contract.
Hong Kong employment contracts must set out certain essential terms of employment before the employee begins work. These terms should clearly define the employee’s pay and key statutory entitlements.
The contract should include details such as:
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Employment contracts in Hong Kong may be oral or written, and may contain both expressly agreed terms and terms that are implicitly understood. Employers must ensure that any changes to the terms of employment, whether proposed or already in effect, are communicated to the employee clearly and comprehensibly.
Where the employment contract is in writing, the employer must give the employee a copy of the written contract for retention and reference.
Where the contract is not in writing, the employer must provide the employee with the relevant employment information in writing if the employee makes a written request before employment begins.
If the terms of employment are changed, particularly where the changes are made in writing or at the employee’s request, the employer must provide the employee with a copy of the revised agreement.
Hong Kong does not impose statutory limits on working hours for adults, and there are no mandatory requirements for overtime compensation. Employers and employees therefore have flexibility to agree on working hours, provided they reach a mutual agreement.
Standard working hours generally range from 40 to 48 hours per week, with research indicating that the average workweek is around 42 hours.
Working patterns typically vary by business, but:
The Employment Ordinance imposes specific restrictions on the employment of minors. Children under 15 years old are prohibited from working. For employees aged 15 to 18 working in industrial settings, working hours are limited to eight hours per day, 48 hours per week, and six days per week.
There is currently no specific legislation restricting night work for adult employees in Hong Kong. The employment contract therefore serves as the primary document governing night work arrangements.
However, specific regulations apply to the employment of children and young persons. Employers and employees may negotiate the terms and conditions of employment, including working hours, to reflect the needs of both parties.
A one-hour meal break is common practice for employees. Specific statutory break requirements apply to minors under the Employment of Children Regulations and the Employment of Young Persons (Industry) Regulations:
Employees employed under a continuous contract are entitled to at least one rest day in every seven days. Employers are responsible for designating rest days, which may be regular or irregular:
Employees are entitled to paid annual leave after completing 12 months of continuous employment with the same employer. The entitlement increases progressively with length of service, from 7 days to a maximum of 14 days.
Employees employed under continuous contracts can take their annual leave with pay. Employers may determine when annual leave is taken, but they must consult the employee or their representative before setting the dates.
Employers must also provide at least 14 days’ written notice before the selected leave dates.
All employees are entitled to statutory holidays. If a statutory holiday falls on an employee’s rest day, a holiday must be granted on the day following the rest day that is not a statutory holiday, alternative holiday, substituted holiday, or rest day.
Employees who have been employed under a continuous contract for at least three months are entitled to holiday pay. This is calculated based on the employee’s average daily wages over the 12-month period preceding the holiday.
The base salary should be mutually agreed between the employer and employee and is typically set out in writing in the employment contract. The agreed base salary may be influenced by factors such as:
In addition to base salary, employers may choose to offer bonuses, which can be fixed or linked to performance. There is no legal requirement to provide bonuses, but it is customary for companies to make additional end-of-year payments, such as a 13th or 14th salary, double pay, or other types of bonuses. These payments are usually made before the Lunar New Year.
To calculate the salary and taxes in Hong Kong, click here.
Employees can accumulate paid sick leave based on their length of service, with the entitlement increasing over time. The maximum number of paid sick days that an employee can accumulate throughout their employment is 120 days.
During the first 12 months of employment, employees accrue sick leave at a rate of 2 paid sick days for each completed month, allowing them to accumulate up to 24 days by the end of the first year.
After the first 12 months, the accrual rate increases to 4 paid sick days for each completed month, allowing employees to build their entitlement more quickly. However, the total accumulated entitlement remains capped at 120 paid sick days.
To qualify for paid sick leave, an employee must:
Employees are generally eligible for paid sick leave only when they take at least four consecutive days of leave. Exceptions apply in specific circumstances, including pregnancy check-ups, post-confinement medical treatment, and miscarriage.
Hong Kong law does not explicitly define paternity leave as a standalone form of leave, as the legislation has traditionally focused on maternity leave. However, parental leave provisions may cover both maternity and paternity aspects in certain circumstances.
Both male and female employees employed under a continuous contract are eligible for parental leave following the birth or adoption of a child under 18 years of age.
To qualify for parental leave pay, employees must:
Female employees who become pregnant are entitled to a continuous period of 14 weeks of maternity leave. Additional leave may apply in certain circumstances:
Employees may agree with their employer to begin maternity leave two to four weeks before the expected delivery date. If no such arrangement is made, maternity leave automatically begins four weeks before the expected delivery date.
If childbirth occurs earlier than expected, maternity leave begins on the day of delivery.
Male employees are entitled to five days of paternity leave for each confinement of their spouse or partner. To qualify, an employee must:
Paternity leave can be taken at any time from four weeks before the expected delivery date until 14 weeks after the actual date of delivery. Employees may take the five days consecutively or as separate days.
Either the employer or the employee may terminate an employment contract by providing the required notice in accordance with the terms of the contract. If either party wishes to end the employment without serving the full notice period, they must make a payment in lieu of notice equivalent to the salary that would have been earned during the notice period.
An employer may dismiss an employee without notice or payment in lieu of notice, known as summary dismissal, in specific circumstances, including wilful disobedience of a lawful and reasonable order, misconduct, fraud or dishonesty, and habitual neglect of duties
Summary dismissal is a serious form of termination and should only be applied in cases involving significant misconductor where an employee has failed to improve despite repeated warnings.
An employee may terminate their employment contract without notice if:
An employer may terminate an employment contract by giving notice or through immediate termination, depending on the circumstances.
An employer may terminate an employment contract without notice in specific circumstances, including:
No notice is also required during the first month of a probation period, where a probation period has been agreed.
If the contract does not specify a notice period, the Employment Ordinance provides default periods based on the employee’s stage of employment and whether they are still within their probationary period.
During the first month of the probationary period, neither party is required to give notice. After the first month, at least seven days’ notice is required, unless the parties have agreed otherwise.
After the probationary period, the notice period can’t be shorter than seven days if the employment contract specifies a notice period. If there’s no notice period is specified, the default notice period is one month.
The employer and employee may agree to make a payment in lieu of notice instead of serving the notice period. The payment is calculated based on the employee’s average daily or monthly wages earned during the preceding 12 months.
Hong Kong does not currently have a contributory unemployment insurance (UI) system or a dedicated means-tested unemployment assistance (UA) scheme for unemployed individuals.
Since 1977, cash assistance for eligible unemployed persons has been provided through the Public Assistance Scheme, which was replaced by the Comprehensive Social Security Assistance (CSSA) scheme in 1993.
CSSA serves as a social safety net for needy individuals and families, providing financial assistance to help bring household income to a level that meets recognised basic needs. Applications are typically processed within four weeks.
Applicants must meet several requirements to qualify for assistance, including:
An employee who has been employed by the same company for at least 24 months under a continuous contract is eligible for a severance payment in certain circumstances. Severance may apply where the employee is dismissed due to redundancy, has their employment contract not renewed; or is otherwise laid off.
Redundancy occurs when an employer: ntends to close the business entirely, ceases operations in a specific area; or anticipates a reduction in the nature of the work performed by employees.
Layoff situations may arise where employees are engaged and paid based on specific tasks being provided. An employee is considered laid off where work is not provided for:
Probationary period typically lasts one to three months, but may extend to six months, depending on the employer’s policies and the specific role.
Under the Patents Ordinance, inventions made by an employee in the course of carrying out their normal employment duties, or as part of an assignment given by the employer are owned by the employer.
Where an employee creates an invention that provides the employer with a significant benefit to its business beyond what was initially anticipated, the employee may be entitled to financial compensation.
The Personal Data (Privacy) Ordinance governs how data users in Hong Kong handle personal data. The framework is comparable in concept to the role of data controllers under the EU General Data Protection Regulation (GDPR) and establishes responsibilities for organisations that manage personal data.
The PDPO is based on Data Protection Principles (DPPs), which set requirements for how personal data should be collected, used, retained and protected.
Under the DPPs:
Contractual terms that restrict an employee’s activities after their employment ends are generally void where they amount to a restraint of trade and are contrary to public policy.
However, post-employment restrictions may be enforceable where the employer can demonstrate that they are reasonable and necessary to protect a legitimate business interest.
Legitimate business interests that may justify such restrictions generally fall into three categories: trade connections and goodwill, trade secrets and confidential information, and stability of the workforce.
There are no statutory provisions that allow employers to mandate remote working. Whether an employer can require an employee to work remotely depends on the terms of the employment contract.
Employment contracts typically specify whether the employer has the right to determine the employee’s place of work. Where the contract gives the employer this flexibility, the employer may require remote working when necessary.
If the employment contract does not permit a change to the employee’s place of work, the employer must obtain the employee’s consent through a written addendum to the contract.
Responsibilities within a remote work arrangement focus on clear expectations for communication, productivity, and adherence to company policies, ensuring accountability and collaboration despite physical distance.
Employers are not legally obligated to cover remote workers’ expenses like electricity or internet, but they may choose to provide stipends or reimbursements. Any such arrangement should be clearly outlined in employment contracts or remote work policies. Additionally, employers must safeguard data security and confidentiality, particularly in regulated sectors.
To support remote workers, employers should foster a sense of community through team-building activities and ensure mental health resources are available.
Under the Employees’ Compensation Ordinance, employers must maintain valid insurance covering work-related injuries, including those incurred by remote workers. This insurance is mandatory for all employees, whether they are working in Hong Kong or abroad. The Ordinance ensures employees are compensated for injuries sustained during work without needing to prove fault, covering medical expenses, rehabilitation, and lost earnings. Employers are required to report serious accidents within 24 hours, ensuring timely claims processing and investigations.
Health and safety at home during remote work arrangements require careful planning and adherence to legal requirements, ensuring both productivity and employee well-being.
Employers should develop clear remote work policies, specifying when and how remote work will be implemented, including break times and work expectations. It’s essential to avoid contacting employees outside working hours to respect their rest. Communication channels should be established for regular check-ins and performance monitoring, focusing on results rather than hours worked.
Employers must provide the necessary equipment, such as computers and software, and offer training to ensure employees use these tools effectively. Security measures, such as anti-virus software and encryption, should be implemented to protect sensitive information.
Employers must comply with Hong Kong laws, including the Employment Ordinance, Occupational Safety and Health Ordinance, and Employees’ Compensation Ordinance, to ensure employee safety and compensation for work-related injuries. Policies should be clear, address role-specific needs, and ensure fairness and transparency in implementation.
Before introducing remote work, employers should consult with employees to address concerns and document any changes in contracts and handbooks to ensure clarity and mutual understanding.
Hiring employees from Hong Kong offers several advantages, particularly for businesses looking to expand in Asia or tap into the region’s economic potential. The city serves as a gateway to mainland China and other key Asian markets, providing access to a dynamic, interconnected business environment. Hong Kong boasts a highly educated and skilled workforce, particularly in sectors like finance, technology, and international business.
Many employees are multilingual and proficient in English, Cantonese, and Mandarin, making communication with international clients and partners easier. The city is known for its business-friendly regulatory environment, low taxes, and minimal bureaucracy, which makes it attractive for companies.
Additionally, Hong Kong’s strong financial sector and legal framework, based on common law, offer a solid foundation for employment contracts. The government’s pro-business policies foster entrepreneurship and innovation, while its cultural and economic ties with China serve as a valuable bridge for companies looking to engage with the Chinese market. The work culture in Hong Kong is highly productive and efficient, contributing to strong performance. Furthermore, the city’s competitive tax regime, modern infrastructure, and excellent connectivity make it an appealing location for businesses to hire local talent.
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