Employment law in Hong Kong
Employment law in Hong Kong is primarily governed by a mixture of statutory law, common law principles, and regulations. It aims to provide protection to both employees and employers, ensuring fair treatment and clear rights and obligations. The main pieces of legislation that regulate employment law in Hong Kong include the Employment Ordinance (EO), the Minimum Wage Ordinance (MWO), the Occupational Safety and Health Ordinance (OSHO), and other related laws and regulations.
Here is an overview of key aspects of employment law in Hong Kong:
1. Employment Contracts
Written Contracts: While employment contracts in Hong Kong can be either written or oral, it is generally recommended to have a written contract that outlines the terms of employment. The Employment Ordinance requires employers to provide a written statement of employment if requested by the employee, and this must be done within 60 days of the start of employment.
Key Terms: The employment contract should specify:
Job duties and responsibilities.
Salary and benefits.
Working hours.
Duration (if fixed-term).
Notice periods and termination conditions.
Types of Employment:
Fixed-Term Contracts: A contract for a specific duration or task.
Indefinite-Term Contracts: Employment that continues without a fixed end date.
Part-Time Employment: Employees who work fewer hours than full-time staff but still enjoy similar legal protections under the Employment Ordinance.
2. Wages and Salary
Minimum Wage: Hong Kong introduced the Minimum Wage Ordinance (MWO) in 2011. As of 2025, the minimum wage is HK$40 per hour. The law applies to most employees, with certain exemptions for specific groups, such as domestic workers.
Payment of Wages: Employers must pay wages at least once a month, and the wages must be paid on time and directly to the employee. If an employee is paid monthly, the employer is required to provide a pay statement outlining the amount paid and any deductions made.
Deductions: Employers are allowed to make deductions for specific reasons, such as repayment of an advance or recovery of a debt owed by the employee, but this must be in accordance with the law and the contract.
3. Working Hours and Overtime
Standard Working Hours: Hong Kong does not have a statutory standard workweek or daily working hours, except in certain regulated sectors. However, the standard workweek is typically 40 to 48 hours, with employees working 5 or 6 days per week.
Overtime: The law does not mandate overtime pay, but many employers choose to pay overtime for work beyond regular hours. Overtime pay is typically calculated at 1.5 times the employee’s regular hourly rate, but this depends on the contract and the employer’s policies.
Rest Periods: Employees are entitled to a meal break (usually at least 30 minutes) for every 5 hours worked, though this is not a statutory requirement unless specified in the contract. Employees are also entitled to weekly rest days.
4. Annual Leave and Public Holidays
Annual Leave: Full-time employees are entitled to 7 days of paid annual leave after 1 year of service. After more than 1 year of employment, the employee's entitlement to annual leave increases progressively:
1 to 2 years of service: 7 days.
2 to 3 years of service: 8 days.
3 to 4 years of service: 9 days.
4 to 5 years of service: 10 days.
5 to 10 years of service: 11 days.
More than 10 years of service: 12 days.
Public Holidays: Hong Kong has 12 statutory public holidays per year, such as Lunar New Year, National Day, and Christmas Day. Employees are entitled to paid leave on public holidays. If an employee is required to work on a public holiday, they are entitled to an additional day off or overtime pay, as stipulated in their contract.
5. Sick Leave
Sick Leave: Employees who have been employed for 4 weeks or more are entitled to sick leave. Employees are entitled to 2 days of sick leave for each month of employment in the first 12 months. After that, the entitlement increases to 4 days per month.
Sick Pay: Employees are entitled to paid sick leave if they have provided the employer with a valid medical certificate issued by a registered medical practitioner. The amount of sick pay is typically 4/5 of the employee’s daily wages. Employers may require employees to take sick leave within a certain period, and sick leave cannot be carried forward.
Extended Sick Leave: If an employee is absent for more than 4 consecutive days, they are required to provide a medical certificate.
6. Maternity and Parental Leave
Maternity Leave: Female employees are entitled to 14 weeks of maternity leave if they have been employed for at least 40 weeks before the expected birth date. Of these 14 weeks, 4 weeks must be taken before the expected birth date, and the remaining 10 weeks after the birth.
Maternity Pay: Employees on maternity leave are entitled to paid maternity leave at 4/5 of their normal wages, up to a maximum of HK$80,000. Maternity benefits are funded by the Social Welfare Department.
Paternity Leave: Fathers are entitled to 5 days of paternity leave if they meet certain eligibility requirements. Paternity leave is paid at 4/5 of the employee’s wages.
Parental Leave: Currently, Hong Kong does not have general parental leave, but parental leave benefits are available to fathers as outlined above.
7. Termination of Employment
Notice Period: Both employers and employees must provide notice before terminating an employment relationship. The minimum notice period depends on the terms of the employment contract, but statutory notice periods are as follows:
Less than 2 years of service: 7 days' notice.
2 to 5 years of service: 1 month's notice.
More than 5 years of service: 2 months' notice.
Severance and Long-Service Payments: Employees who have been with the same employer for 5 or more years are entitled to severance pay or long-service payment upon termination, unless the dismissal is due to misconduct or other specific circumstances.
Dismissal: Employees may be dismissed for reasons such as misconduct, redundancy, or performance issues. However, the employer must follow the proper procedures and provide any required compensation.
Unlawful Dismissal: Employees dismissed without proper notice or without valid reasons may be entitled to compensation.
8. Social Security and Benefits
Mandatory Provident Fund (MPF): The MPF System is a compulsory pension scheme that requires both employers and employees to make monthly contributions to a fund that is managed by private MPF trustees. The contribution rate is 5% of the employee’s income, with the employer also contributing 5% (up to a maximum income of HK$30,000 per month).
Health Insurance: Employees are entitled to basic healthcare services through the public healthcare system. However, employers may offer private health insurance as an additional benefit.
9. Discrimination and Harassment
Non-Discrimination: Hong Kong has laws prohibiting discrimination in the workplace on the grounds of gender, disability, race, and family status. The Sex Discrimination Ordinance, Disability Discrimination Ordinance, and Family Status Discrimination Ordinance protect employees from unfair treatment.
Sexual Harassment: Sexual harassment is prohibited under Hong Kong law, and employers are required to take steps to prevent and address such behavior in the workplace.
Complaints and Redress: Employees who face discrimination or harassment can file complaints with the Equal Opportunities Commission (EOC), which is responsible for investigating and resolving such issues.
10. Occupational Health and Safety
Workplace Safety: Employers are required to provide a safe and healthy working environment. The Occupational Safety and Health Ordinance (OSHO) ensures that employers take necessary precautions to protect employees from work-related injuries and illnesses.
Safety Training: Employers must provide adequate training and equipment to employees, particularly in hazardous industries such as construction and manufacturing.
11. Labor Disputes and Resolution
Labor Disputes: If disputes arise between employers and employees regarding issues such as dismissal, wages, or working conditions, they can seek resolution through the Labour Tribunal, a specialized court that handles labor-related matters.
Mediation and Arbitration: Mediation services are available to help resolve disputes outside the formal court system. Arbitration is also an option for resolving disputes in certain cases.
Conclusion
Hong Kong’s employment law provides significant protections for employees while balancing the needs of employers. The laws are designed to ensure fair treatment in areas like wages, working hours, maternity leave, termination, and health and safety. For both employers and employees, understanding these laws is critical to ensuring compliance and resolving disputes fairly. For more specific issues or legal advice, it is advisable to consult with a labor lawyer or employment consultant familiar with Hong Kong’s employment regulations.
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