Hong Kong Employment Ordinance

The Employment Ordinance (Cap. 57) of Hong Kong is the most important law on work in Hong Kong. It states the legal rights and responsibilities of employees and employers. Whether you run a new business, do HR for a small to medium enterprise, or lead a large corporate team, adherence to the Hong Kong employment ordinance is mandatory. It’s tremendously important.

Failing to conform can result in legal troubles, monetary penalties, and damage on your corporation’s popularity. That’s why we created this compliance check list— especially for HR managers, small business owners, startup founders, and everybody answerable for managing human beings in the place of job.

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    What is the Hong Kong Employment Ordinance?

    The Employment Ordinance governs employment relations in Hong Kong. It applies to most employees, regardless of nationality, if they are employed under a contract of employment in Hong Kong.

    Legal Jurisdiction Includes:

    • Salaries
    • Entitlement leaves
    • Working hours
    • Termination and severance
    • Mandatory Provident Fund (MPF)

    Who are covered?

    • Full-time, part-time, and casual employees
    • Continuous contract staff (4 weeks+ with 18+ hours/week)

    Key Principles:

    • Equal job opportunities
    • Timely wage payment
    • Lawful termination
    • Proper record keeping and documentation

    Significant Areas Employers Must Adhere To

    1. Job Agreements
    • It must be recorded for clarity and legal protection.
    • Must include:
    • Job title
    • Pay and perks
    • Working hours
    • Leave benefits
    • Termination terms
    • Avoid oral-only agreements and unclear terms.
    1. Wages and Payment
    • Minimum wage: HK$42.1 an hour (as of 2025).
    • Wages must be remitted within 7 days after the wage period closes.
    • Include details of overtime pay if applicable.
    1. Working Hours and Days Off
    • Employees are entitled to a minimum of 1 rest day every 7-day period.
    • No statutory limit on working hours, but good practices are encouraged.
    • No meal breaks are required but are widely practiced.
    1. Leave Entitlements
    • Annual leave: Begins at 7 days and accrues more years of service.
    • Statutory holidays: 13 days (required even while on probation).
    • Sick leave: Accrued based on continuous employment.
    • Maternity leave: 14 weeks’ pay if eligible.
    1. MPF Contributions and Benefits
    • Mandatory for workers 18–64 years who earn HK$7,100/month or higher.
    •  Employer contributes 5% of applicable income of employee, matching the employee’s contribution.
    • Contribute prior to the 10th day of each month.
    1. Termination and Compensation
    • Notice period: Specified in the contract or statutory.
    • Payment in lieu allowed by agreement.
    • Severance pay is necessary after 24 months of service in certain cases.
    • Prevent unfair dismissal—e.g., termination on grounds of pregnancy or trade union membership.
    1. Record Keeping and Documents
    • Must retain employment records for a minimum of 12 months.
    • Includes contracts, salary slips, MPF statements, and leave records.
    • Non-compliance will be fined up to HK$100,000.

    Errors Made by Employers

    • No written contracts are major legal risk.
    • Improperly classifying employees as independent contractors to avoid MPF and benefits.
    • Ignoring probationary period regulations.
    • Wrong ways of ending jobs can cause legal issues.

    Penalties for Non-Compliance

    • Fines as much as HK$350,000 and/or imprisonment for major offenses (e.G., wage default).
    • Employers may want to pay their people.
    • Damage to popularity and worker accept as true with.

    Example: A catering organization was fined HK$150,000 in 2023 for non-payment of wages in accordance with the time.

    How to Stay Current and Ensure Continuing Compliance

    • Conduct HR audits often to spot gaps early.
    • Consider outsourcing HR or hiring compliance experts for ongoing assist.
    • Keep knowledgeable through:
    • Hong Kong Labor Department website
    • Legal updates and industry newsletters

    Conclusion

    Adhering to the Hong Kong Employment Ordinance is not just a statutory requirement but also a commitment towards equitable, honest, and considerate workplace ethics. By using this checklist, you will not only escape prosecution but also enhance your employer reputation.

    Have questions or would like the explanation of a specific clause? Ask us or comment below—we’re here to help.

    How FastLane HR Can Help

    It is difficult to understand the Hong Kong Employment Ordinance, particularly for expanding companies with limited HR resources. That is where FastLane HR comes in.

    Here’s how we can assist your compliance journey:

    • Drafting and reviewing employment contracts Make sure all contracts are legally compliant and contain necessary clauses.
    • Managing Payroll and MPF Prompt and accurate salary payment and MPF contributions made on your behalf.
    • Leave Management Solutions We assist you hold tabs on vacations, excursion time, unwell time, and greater—problem-unfastened.
    • Termination and Exit Process Guidance We help you in making equitable, criminal terminations and computing severance pay as it should be.
    • Ongoing HR Compliance Advisory Keep up-to-date with modifications in the Employment Ordinance by looking for professional advice and updates on compliance.
    • Tailored HR Outsourcing Solutions Whether you’re a startup or SME, we offer scalable HR answers tailor-made for your desires.

    Need peace of thoughts with HR compliance?

    Contact FastLane HR nowadays to schedule a free consultation or analyze more approximately our tailored HR and payroll solutions.