Employment Contracts in Hong Kong: Top Things to Note

You’ve just established your company in Hong Kong – what’s next? If you plan to hire employees in Hong Kong, understanding the local employment contract requirements and legal obligations under the Employment Ordinance (Cap 57.) is essential.

Below, we cover a concise overview of Hong Kong’s legislation governing employment contracts, including the distinctions between “temporary”, “part-time” and “substituted” employees under the law. Whether you are a new business owner or expanding your existing workforce, these are the key things you need to know before drafting your first employment contract.

What is an employment contract in Hong Kong?

Under the Employment Ordinance, an employment contract in Hong Kong can be made verbally or in writing, and it includes both express and implied terms. Regardless of the format, employers must clearly communicate the employment conditions to each employee. Mandatory employment information includes:

Wages (including rate of wages, overtime rate and any allowance, whether calculated by the piece, job, hour, day, week or otherwise);
Wage period;
Length of notice required to terminate the contract; and
End-of-year payment entitlement and related details.

What is a continuous contract of employment?

According to the Employment Ordinance, a continuous contract is defined as an employee who has been employed by the same employer for four consecutive weeks or more, working at least 18 hours each week.

Employees under a continuous contract are entitled to statutory benefits such as paid annual leave, sickness allowance, rest days, maternity/paternity leave and severance or long service payments (where applicable).

Are there any mandatory documents employers must provide?

If the employment contract is in writing, employers must provide the employee with a copy for their own retention. If the contract is verbal, the employee has the right to request written particulars before employment commences. Upon such request, the employer is legally obliged to provide a written summary of the employment terms.

Failure to comply may lead to prosecution and a fine of up to HKD 10,000.

Note: Any clause within the employment contract that diminishes or removes statutory rights provided by the Employment Ordinance is void and unenforceable.

Are “temporary”, “part-time” and “substituted” employees treated differently?

There is no distinction between “temporary”, “part-time”, “substituted”, “permanent”, or “full-time” employees under the Employment Ordinance.

All employees, regardless of their job title or hours worked, are protected by statutory provisions relating to:

Payment of wages
Restrictions on wage deductions
Provision of statutory holidays

However, additional benefits (such as rest days, annual leave, and sickness allowance) only apply to those employed under a continuous contract (i.e. 4+ weeks, at least 18 hours weekly).

Do contractors or self-employed persons have the same protection?

The Employment Ordinance applies only to individuals engaged under an employment contract. Contractors and self-employed persons are not regarded as employees under the law and therefore do not enjoy the same statutory rights and protections.

Employers should make it explicitly clear in the employment contract or agreement whether a person is engaged as an employee or as a contractor/self-employed individual. This clarity prevents disputes over employment status and liability for statutory benefits or contributions.

How to distinguish between an employee and a contractor/self-employed person?

When disputes arise, courts and tribunals examine the overall nature of the working relationship rather than relying solely on job titles or contracts.

Key indicators include:

The degree of control the employer has over how, when, and where the work is performed.
Ownership of tools or equipment used for work.
Whether the person bears financial risk or has the opportunity to profit from sound management.
Whether the person is integrated into the organisation or operates independently.
The ability to hire assistants or substitutes.
Responsibility for insurance, tax, and other statutory obligations.

No single test is conclusive, but collectively these factors determine the true nature of the relationship.

Keep Your Employment Contracts Up to Date

The best way to protect your company and minimise legal risk is to ensure your employment contracts are clear, comprehensive, and compliant with the latest regulations. Each contract should:

Define the employment type and status (e.g. full-time, part-time, temporary, contractor).
Clearly identify the parties involved.
Specify remuneration, benefits, and termination terms.

Employers should also review and update contracts regularly, especially following legislative amendments or policy changes.

In a city known for its fast-paced business environment, compliance lapses can be costly. Reliable payroll outsourcing providers, such as Links, can help you ensure that your employment contracts, salary payments, and HR practices comply with Hong Kong’s legal requirements. Our payroll specialists are trained in Hong Kong labour law, providing peace of mind and operational efficiency to your business. Contact us today to learn more!

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