Hong Kong Employer of Record

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Hong Kong, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Hong Kong―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Hong Kong and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

The primary statute that regulates employment in Hong Kong is the Employment Ordinance, with a number of additional ordinances handling topics such as discrimination and labor relations.

Although labor unions, collective bargaining and strikes are permitted and employers cannot dissuade, punish or terminate employees for participating, employers have no obligation to bargain with unions and collective bargaining agreements are not legally binding.

Since employment in Hong Kong is highly regulated, compliant employment contracts are an essential business need. As your employer of record and PEO in Hong Kong, we can ensure that every contract, for every worker, meets all requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up-to-date with employment regulations as they change.

As you look to hire employees in Hong Kong, here are some common regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

The workday in Hong Kong is not regulated, aside from workers 15 to 17 years of age, who may not work more than eight hours a day, six days a week or overnight. Employees are entitled to one day of rest every seven days, although it does not have to fall on the same day of the week.

As you consider the appropriate salary to offer new employees, keep in mind:

As your employer of record in Hong Kong, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Although not required by law, it is common to give employees an end-of-year bonus, usually equal to one month’s pay.

A probation period of three months may be agreed to in an employment contract. Either employer or employee may terminate the contract within the first month without giving notice.

Either employer or employee may terminate a contract without cause with advance notice, and either party may provide payment in lieu of notice. When an employee is terminated for cause, however, no notice is required. The Employment Ordinance stipulates that participation in a strike is not considered cause.

Several classes of employees may not be terminated except for cause, including pregnant employees who have notified their employer of the pregnancy and employees on paid sick leave.

Employees may resign without notice under certain circumstances; for instance, if they’re being ill-treated by their employer or have been employed for at least five years and are medically certified as unfit for the type of work being done.

Severance pay generally equals either two-thirds of an employee’s monthly wages or two-thirds of HK$22,500 (whichever is less) for each year of service.

As your employer of record in Hong Kong, we can work with you to quickly handle the unforeseen event of an employee termination, providing legal guidance and a personalized process that ensures you stay out of labor court.

When negotiating terms of an employment contract with a candidate in Hong Kong, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Pregnant employees who have been employed for at least four weeks are entitled to 14 weeks of maternity leave, which can begin anytime between two and four weeks before the expected delivery date.

An employee who has been employed continuously by their current employer for at least 40 weeks is entitled to 80% of their pay. Workers employed for fewer than 40 weeks are not compensated for maternity leave unless their contract states otherwise.

If a pregnant employee experiences illness or disability due to pregnancy or childbirth, they may take additional leave of up to four weeks.

Employees who have been working for the same employer for at least 12 months are entitled to paid leave according to the following schedule:

At least seven days of annual leave must be taken consecutively, and accrued leave must be taken within 12 months. An employee can opt for payment in lieu of annual leave over 10 days.

The following holidays are observed in Hong Kong each year:

Employees are entitled to holiday pay if they have been continuously employed by the same company for at least three months beforehand.

Employees accrue paid sick leave as follows:

A maximum of 120 days of sick leave may be accumulated.

Sick leave is unpaid unless the employee takes at least four days in a row and submits a medical certificate. Sick leave pay is equal to 80% of regular pay.

Time off for prenatal doctor visits is treated as sick leave.

Employers and employees make contributions to Mandatory Provident Fund Schemes, which are privately managed retirement plans. With MPF schemes, an employee can invest the funds in the account in a variety of investment products and when changing jobs can transfer the funds to the new employer’s MPF scheme or a personal MPF account or keep the funds in the account in the original employer’s scheme.

A person who 65 or who takes early retirement at 60 can withdraw funds from MPF accounts. If the employee dies before retirement, the funds go to the employee’s survivors. An employee who leaves Hong Kong permanently before retirement may withdraw the funds in the MPF accounts.

Other benefits for Hong Kong residents over the age of 65 are provided under government programs, such as the Social Security Allowance Scheme and Comprehensive Social Security Assistance, which have various residency requirements and asset limitations depending on the program. Employers and employees make no contributions to these programs.

In addition to healthcare benefits, employees in Algeria are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Algeria, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: December 18, 2023

We write and validate all local employment contracts, streamlining the onboarding process for you and your employees in Hong Kong—all you have to do is provide relevant information and review and approve the employment agreement.

As your employer of record in Hong Kong, we will:

The entire onboarding process for the employee is often completed in as little as two weeks.

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution to expand and hire in over 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Hong Kong. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

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