Leave Policy in Hong Kong

Types of Leave

Under the Employment Ordinance (Cap. 57), employees in Hong Kong are entitled to several types of statutory leave. Below is a breakdown of the key entitlements:

• Annual Leave: Employees who have been employed under a continuous contract for 12 months are entitled to 7 days of paid annual leave, increasing by one day per year of service up to a maximum of 14 days. Leave must be taken within 12 months of entitlement and can be split if both employer and employee agree.
• Sick Leave: Paid sickness days accrue at the rate of 2 days per month for the first 12 months and 4 days per month thereafter, up to a maximum of 120 days. Sick leave is paid at 80% of the employee’s average daily wages and requires a medical certificate.
• Maternity Leave: Female employees are entitled to 14 weeks of paid maternity leave, provided they have worked continuously for at least 40 weeks before the expected date of confinement. Maternity leave pay is 80% of average wages, with government subsidies available for eligible employers.
• Paternity Leave: Male employees are entitled to 5 days of paid paternity leave if they have worked continuously for 40 weeks. The leave must be taken within 4 weeks before or after the birth.
• Statutory Holidays: Employees are entitled to 13 statutory holidays. These are separate from annual leave and must be paid. If an employee works on a statutory holiday, a substituted day off or additional pay must be provided.

Unused Leave

Annual leave must be taken within the 12-month period after the entitlement year ends. If not taken, it may lapse unless carried forward by agreement. Upon termination, any unused leave must be compensated in cash. Statutory holidays cannot be carried forward and must be observed on the designated date or with proper substitution.

Consequences of Mismanagement

Non-compliance with leave entitlements may result in penalties of up to HKD 50,000 per offense under the Employment Ordinance. Employers who fail to pay leave wages, grant leave on time, or provide proper records can be prosecuted. Employees may also file claims with the Labour Department.

Public Holidays

Hong Kong has 13 statutory holidays and 17 general holidays annually. Employers must provide leave or payment for statutory holidays. Substitution is allowed but must follow the statutory timeline. Work performed on public holidays must be paid at the standard or overtime rate depending on the arrangement.

How AYP Manages Leave Compliance

AYP helps businesses comply with Hong Kong’s Employment Ordinance by automating leave accruals, ensuring proper wage calculations, maintaining statutory holiday schedules, and generating reports for labor inspections. We support proper maternity and paternity leave claims and track unused entitlements to reduce liability.

Contact Us

Expanding your workforce in Hong Kong? Contact AYP for compliant EOR solutions that simplify local employment obligations, including leave management.

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