Hong Kong is one of the best places in the world for businesses to thrive beyond their potentials. Moreover, with precise legal labor laws and regulation issued by the government, Hong Kong ensures to give safe and positive working places to everyone. Therefore, it is essential to understand the legal terms related to employment ordinance especially when it comes to employment contract. Employment contract should be made before employment begins. And, the contents in the contract will be effective through out the working period. In this article, we will guide you to know about the essential legal term you have to understand.
Understanding Employment Contract
When an employer is hiring someone as employee whether it is part-time, hourly, daily, weekly or otherwise, Employment contract has to be made. Employers and employees are free to negotiate and agree on the terms and conditions of employment provided that they do not violate the provisions of the Employment Ordinance. The agreement can be made either orally or in written form. It needs to include both express and implied terms. Any part of contract that reduces an employee’s rights, benefits or protection given by this Ordinance is not valid.
Employment Conditions to Inform
Employer must inform and negotiate with soon-to-be employee clearly concerned with the conditions of employment. And both parties should negotiate it before making the official agreement. And, conditions should include:
- wages (including rate of wages, overtime rate and any allowances, whether calculated by piece, job, hour, day, week or otherwise);
- wage period;
- length of notice required to terminate the contract; and
- if the employee is entitled to an end of year payment, the end of year payment or proportion and the payment period.
If the contract of employment is in writing, employer need to give one copy of the written contract to the employee for retention and reference. Whenever there is any change in the conditions of service, employer should support amended written copy to the employee.
Employment Contract Sample
To have better understanding about employment contract, Hong Kong Labor Department has issued a sample employment contract . The sample covers the major entitlements and protection enjoyed by employees under employment ordinance.
Consulting with Professional
As an employer in Hong Kong, it is challenging to make employment contract which are compliance and comprehensive with Hong Kong labor laws. Therefore, it is better to consult with professional who understands the laws and requirements. Especially when there are cases like, creating new contract and handling disputes, it is advisable to talk with professionals. So that you can reduce the risks of legal controversy. Fastlane HR can help you to get the job done in a the most affordable budget with the qualified team of legal professional.
This article was written by sourcing the facts of Hong Kong Labor Department’s “A Concise Guide to the Employment Ordinance.”