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Compliance
Hong Kong’s employment is governed by the Employment Ordinance (EO), which covers contracts, wages, holidays, termination, and severance. The Labour Department handles enforcement and inspections. Non-compliance may lead to fines, imprisonment, and restrictions on operating a business.
Contracts can be oral or written, but written agreements are strongly recommended. These must clearly define wages, job duties, work hours, holidays, and notice periods. Continuous employment (4 weeks, 18 hours/week) grants rights to paid leave and severance. Any terms contrary to the EO are unenforceable.
There is no statutory cap on working hours in Hong Kong, but employees are entitled to at least 1 rest day per week. Employers must also observe proper rest breaks under occupational safety laws. Excessive hours can create reputational and legal risk, especially if health and safety obligations are breached.
The Statutory Minimum Wage (SMW) is HK$40 per hour (as of 2025). Wages must be paid at least once per month, with payslips provided. Deductions must be lawful and consented to. Non-payment of wages is a criminal offense under the EO.
Employers must enroll employees in a Mandatory Provident Fund (MPF) scheme and contribute 5% of relevant income (up to HK$1,500/month). Contributions are due on the 10th day of each month. Late contributions are penalized. Offshore employees and certain exemptions may apply depending on residency and duration.
Employers must obtain an employment visa under the General Employment Policy (GEP) before hiring foreign professionals. Positions must require special skills not readily available locally. Sponsorship includes salary benchmarking and evidence of business operations. Hiring without a permit is a criminal offense.
Termination must follow contractual and statutory notice periods (7 days to 1 month). Dismissal for misconduct must follow fair procedures. Severance is payable for redundancy or long-service termination. Wrongful termination can be challenged at the Labour Tribunal.
Labour officers conduct routine checks and investigate complaints. Companies may be penalized for underpayment, unlawful deductions, or unsafe conditions. Disputes are resolved via the Labour Tribunal. Employers should retain employment and payroll records for 7 years.
AYP ensures compliance with the EO by managing employment contracts, payroll, MPF contributions, and visa processes. We also advise on labor disputes and help structure lawful terminations.
Hiring in Hong Kong? AYP ensures full labor law compliance while you focus on scaling your team.
