Labor law
in Hong Kong.

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Hong Kong

Labor law in Hong Kong – Overview

The main legislation that makes up the labor laws in Hong Kong is the Employment Ordinance, which regulates key areas of employment, including:

Minimum wage
Maternity leave
Sick leave
Minimum notice of termination (and the right to make a payment in lieu of notice)

Employers in Hong Kong, with limited exceptions, are required to adhere to the terms of the Employment Ordinance, which applies to all employees regardless of nationality.

Notice period laws in Hong Kong

Dismissals in Hong Kong

Most employees in Hong Kong are entitled to a minimum notice period of 7 days if they have been employed for less than 2 years, 14 days if they have been employed for 2 years or more but less than 5 years, and 21 days if they have been employed for 5 years or more.

The exception to this rule is if an employee is terminated for a valid reason such as gross misconduct.

Resignations in Hong Kong

Thee minimum is 7 days notice, unless the employee is on a probationary period. This should be specified in the employment contract.

Severance laws in Hong Kong

Under the EO, employees are eligible for either severance payment or long service payment subject to the following conditions:

Severance Payment

They have a minimum of 24 months employment under a continuous contract.
The employee has been dismissed or their contract was not renewed because of redundancy.

If an employee wants to receive severance pay, they must provide notice to their employer in writing within 3 months after dismissal. The employer must provide the employee with their severance pay within 2 months after receiving the notice.

Long Service Payment

They have a minimum of 5 years employment.
The employee has been dismissed or their contract was not renewed because of redundancy.
The employee dies during their employment.
The employee resigns over the age of 65, or has a long-term illness.

Long service payment must be provided by the employer to the employee within 7 days after termination.

Both severance payments and long service payments use the same calculation, which is 2/3 of the employee’s monthly salary for every year they have been employed. This is subject to a maximum of $390,000 HKD.

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FAQs

What are the most relevant legal documents related to employment law in Hong Kong?

In Hong Kong, the most relevant legal documents related to employment law are the Employment Ordinance and the Employees Compensation Ordinance.

Can I terminate an employee during their probationary period in Hong Kong? How much notice do I need to give?

If, during the probationary period, an employer decides that an employee is not suitable for the role, they may terminate the employment contract with no notice.

Can the employee terminate employment during their probationary period in Hong Kong? How much notice do they need to give?

The employee may terminate the employment contract during the probationary period with no notice.

After the probationary period, what is the process to terminate employment in Hong Kong?

After the probationary period, an employer in Hong Kong can terminate an employee’s contract by giving the required notice as specified in the contract, or by paying the employee in lieu of notice. The minimum required notice is 7 days if the employee has been employed for less than 2 years, 14 days if they have been employed for 2 years or more but less than 5 years, and 21 days if they have been employed for 5 years or more.

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Labor law
in Hong Kong.

Labor law in Hong Kong – Overview