After you’ve established your Hong Kong business, employing staff is a crucial next step. Knowing and following the employment law requirements in Hong Kong requires a thorough awareness of the recruiting process and the applicable legal requirements. While searching for new staff in Hong Kong, you should keep the following in mind.
- Hong Kong’s legally enforceable employment and labor regulations;
- Legal constraints and standards for employing local and international workers in Hong Kong;
- Typical procedures and expectations throughout the hiring process;
- Hong Kong-specific recruitment recommendations.
Do you have plans for a Hong Kong company incorporation? Having trouble understanding the employment laws and the employment Ordinance? Fintech Harbor Consulting will gladly assist you in solving any problems.
The Employment Ordinance of Hong Kong
The Employment Ordinance is the primary piece of law that lays out the foundational principles and requirements for working in Hong Kong.
The Employment Law’s Crucial Role:
- When it comes to labor and employment law, Hong Kong relies heavily on the Employment Ordinance. The agreement specifies the rights, responsibilities, and obligations of both the company and its employees. The Ordinance also outlines the fundamental terms and conditions of work and regulates the specifics of the employment contract to guarantee the employee’s safety.
- Determine first whether the worker is within the purview of the Employment Ordinance.
- If your employee is within the purview of the Employment Ordinance, then the conditions of the employment contract must be in compliance with those criteria.
- In the absence of coverage by the Employment Ordinance, the provisions of the employment contract are subject to the agreement between the employer and the worker.
Who is covered by the Employment Ordinance?
Temporary and part-time workers alike are within the purview of the Employment Ordinance, with a few notable exceptions.
- A member of the employee’s immediate family who shares the same residence;
- A worker within the meaning of the Contracts for Employment Outside Hong Kong Ordinance. This Ordinance governs employment contracts made in Hong Kong by workers whose primary duties include manual labor and whose monthly salaries do not exceed HK$20,000 but whose employers are located outside of Hong Kong.
- A member of the crew of a ship not registered in Hong Kong who is working under a crew agreement in accordance with the Merchant Shipping (Seafarers) Ordinance.
- A person whose apprenticeship contract has been registered under the Apprenticeship Ordinance and who is thus afforded some but not all the protections of the Employment Ordinance.
As an added bonus, the Employment Act classifies workers as follows:
- Workers hired on a fixed-term contract;
- Workers are hired on a rolling basis.
Employees who are working under an employment contract are afforded a minimal set of protections according to the Ordinance. These protections include the payment of wages, restrictions on salary deductions, the supply of statutory holidays, and other benefits.
All of the employment rights and benefits that are promised by the Employment Ordinance are available to temporary and part-time employees who have been employed on a continuous basis. These workers are entitled to all of these protections and benefits. An employee is deemed to be on a continuous contract of employment if they have worked for the same firm for at least four weeks and an average of eighteen hours per week throughout that time.
Fintech Harbor Consulting can also help with starting a business in other countries, for example in Estonia: https://www.fintecharbor.com/company-registration-in-estonia/.