Understanding Employee Rights and Employer Obligations in Hong Kong
- Kristina Coluccia
- Apr 16
- 3 min read
Hong Kong is a highly attractive market for international companies expanding their footprint in Asia. However, entering the market means playing by the rules—and that includes understanding local employment law.
Whether you’re hiring your first employee or scaling a larger team, you’ll need to navigate a legal framework designed to protect both employer and employee. Hong Kong’s Employment Ordinance is the core legislation that governs most employment relationships, offering a balance of flexibility and protection.
Here’s what every business needs to know.
Employment Contracts: Written or Not?
In Hong Kong, there is no legal requirement for a written employment contract, but it is highly recommended to have one in place. In the absence of a written agreement, the law implies a monthly contract that is automatically renewable and terminable with proper notice.
If the term of employment exceeds one month and the contract is not in writing, employees are entitled to request a written statement of key employment terms—and employers are obligated to provide it.
Wages and Compensation
As of May 2025, the minimum wage in Hong Kong will be HK$42.10 per hour. This applies to nearly all employees, including part-time and casual workers. There are exceptions, such as foreign domestic helpers and student interns.
Wages must be paid in legal tender unless otherwise agreed (such as bank transfers). Employers are allowed to make certain deductions, including for absences or loan recoveries, but these are strictly regulated.
It’s common in Hong Kong to offer an end-of-year payment or bonus, often equivalent to one month’s salary—especially during the Lunar New Year. If offered, this should be clearly outlined in the employment contract.
Working Hours and Leave
Working hours are not capped by statute, but every employee working under a continuous contract must receive at least one rest day every seven days.
Employees are entitled to 14 paid statutory holidays each year, with annual leave increasing from 7 to 14 days based on length of service.
Sick leave accrues with service, with up to 120 days paid at four-fifths of average daily wages.
Maternity leave is 14 weeks (with payment for 10 weeks fully uncapped and 4 weeks capped at HK$80,000).
Paternity leave is 5 days, paid at four-fifths of daily wages.
Employers are required to enroll employees into a Mandatory Provident Fund (MPF) scheme unless exemptions apply. The contribution is 5% from both employer and employee (subject to income caps).
Termination, Redundancy & Long Service
Hong Kong allows flexible termination of employment, provided proper notice or payment in lieu is given. The minimum notice period is seven days, unless otherwise stated in the contract.
Summary dismissal is permitted for serious misconduct.
Employees dismissed due to redundancy (after 24 months of service) are entitled to a severance payment, calculated based on average monthly earnings.
Employees who leave after five or more years of continuous service may be eligible for a long service payment, unless already compensated via MPF or other schemes.
These payments are tightly regulated, with defined formulas and caps.
Hiring Foreign Staff
Non-residents must obtain a valid work visa to be employed in Hong Kong. The employer is responsible for initiating this application, demonstrating why the candidate’s skills are not readily available in the local market.
Once granted, visas typically last two years, and renewal is possible with continued employment. Employees can sponsor their dependents for residence as well.
Trade Unions and Employer Associations
While Hong Kong is not heavily unionized in the private sector, trade unions are legally recognized, and employees have the right to join. Discrimination against union members is prohibited.
There are also several employer associations available for networking, advocacy, and industry collaboration.
The Bottom Line for Employers
Hong Kong’s employment regime is clear, well-regulated, and designed for predictability—making it an ideal jurisdiction for international hiring. Still, missteps can be costly. Whether it’s MPF registration, sick leave entitlements, or visa paperwork, it’s essential to understand your obligations from the outset.
At Woodburn Accountants & Advisors, we help international businesses hire, onboard, and manage teams in Hong Kong. From drafting compliant contracts to handling payroll, MPF, and visa applications, we ensure your people strategy is as solid as your business strategy.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.
