Hong Kong Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Employment Ordinance
  • Wages Protection Ordinance
  • Occupational Safety and Health Ordinance
• Legal Characteristics:
  • Aims to protect employees' rights and welfare
  • Sets out basic requirements for employment contracts, working hours, holidays, severance pay, etc.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Open-ended contracts
• Contractual Terms:
  • Must include details of job duties, salary, working hours, rest periods, holidays, etc.
• Language and Currency:
  • Contracts must be in Chinese or English
  • Currency unit is Hong Kong Dollar

Working Hours Regulations

• Standard Working Hours:
  • 8 hours/day, 40 hours/week
  • Monday to Friday
• Rest Days and Breaks:
  • At least one rest day per week
  • Entitled to at least 30 minutes break after 5 consecutive working hours

Holiday Policy

• Annual Leave:
  • Employees with 12 months of service are entitled to 7 days of paid annual leave
  • Additional day of paid leave for each additional year of service, up to a maximum of 14 days
• Public Holidays:
  • 17 statutory public holidays
• Special Leave:
  • Sick leave: 2 days per month (first 12 months of employment) or 4 days (after 12 months)
  • Maternity leave: 14 weeks (extendable to 18 weeks after 40 weeks of continuous employment)
  • Paternity leave: 5 days (after 40 weeks of continuous employment)

Employee Severance and Termination of Contract

• Notice Period:
  • 30 days (employer may specify a longer notice period)
• Severance Pay:
  • Employees with 2 or more years of continuous service are entitled to severance pay
  • Severance pay calculation: Base amount per year of service or 2/3 of last month's salary, capped at HKD 390,000
• Unfair Dismissal Protection:
  • Employers must provide a valid reason for dismissing an employee, or the employee may be entitled to compensation

Taxation

• Personal Income Tax:

  • Salary Range (HKD)	Tax Rate
    0 - 50,000	2%
    50,001 - 100,000	6%
    100,001 - 150,000	10%
    150,001 - 200,000	14%
    200,001 and above	17%

• Social Insurance Contributions:

  • Mandatory Provident Fund: 5% (shared equally by employer and employee)

Health Insurance

• Insurance Policy:
  • Employees are required to participate in the Mandatory Provident Fund Scheme
• Insurance Coverage:
  • Retirement benefits
  • Disability insurance
  • Death insurance

Compensation and Benefits

• Minimum Wage:
  • HKD 40 per hour
• Salary Structure:
  • Monthly salary, paid on the last working day of each month
  • 13th-month bonus (not mandatory, but customary)

Work Permits and Visas

• Permit Requirements:
  • Foreign nationals require a work visa to work in Hong Kong
• Application Process:
  • Employer applies to the Immigration Department for a work visa
  • Applicant submits application to the Immigration Department

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Hong Kong
• Common Provisions:
  • Restrict employees from using or disclosing the employer's confidential information after leaving employment
  • Restrict employees from working for competitors after leaving employment

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skills upgrading training
• Government Support:
  • Government provides funding and policies to encourage corporate training

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on factors such as race, gender, religion, etc.
• Enforcement:
  • Equal Opportunities Commission is responsible for enforcing relevant laws

Remote Work Policy

• Legal Framework:
  • No specific laws governing remote work
• Tax and Insurance Implications:
  • Tax and social insurance implications of remote work depend on specific circumstances

Authoritative Website Addresses

• Hong Kong Labour Department