The Employment Ordinance sets mandatory minimums for MPF, annual leave, sick leave, notice periods, and termination. Most provisions cannot be waived by contract — they apply from the employee's first day.
Hong Kong's Employment Ordinance (Cap. 57) sets mandatory minimum standards that apply from the commencement of employment, irrespective of what the employment contract provides. An employment contract that offers less than the statutory minimum is enforceable up to the statutory floor — but the statutory entitlement applies above it. Founders who assume that agreeing different terms with an employee avoids the Ordinance are wrong.
Hong Kong law does not require a written employment contract, but the absence of one consistently disadvantages employers in Labour Tribunal proceedings. Without a written record, disputes about salary, notice periods, bonus entitlement, IP ownership, and confidentiality obligations default to the employee's account of what was agreed. Use a written contract, have it signed before the employee starts work, and retain a signed copy.
At minimum, your employment contract should specify: job title, duties, start date, salary and pay period, notice period, annual leave entitlement, any probation period, confidentiality and IP ownership provisions, and any post-employment restrictions.
All employees aged 18 to 64 employed for 60 days or more must be enrolled in an MPF scheme. Both employer and employee contribute 5% of relevant income, up to HK$1,500 per month from the employer (based on the current maximum relevant income of HK$30,000, subject to periodic review by the MPFA). Enrolment must occur within 60 days of the employee's start date. Non-enrolment and non-contribution are criminal offences.
The Statutory Minimum Wage is reviewed every two years. Check the current rate with the Labour Department. It applies to virtually all employees, with limited exceptions for student interns and specified exempted persons.
Paid annual leave entitlement (after 12 months of continuous employment) scales with service length:
Employees also accumulate paid sick leave (2 days per month for the first 12 months, 4 days per month thereafter, up to a maximum of 120 accumulated days), paid maternity leave (14 weeks), paid paternity leave (5 days), and jury service leave.
The minimum statutory notice period is 7 days for employees employed less than 3 months, and one month (or the contractual period, whichever is longer) after that. Summary dismissal without notice is only lawful on limited grounds: wilful disobedience, serious misconduct, fraud, or physical violence. Wrongful dismissal claims are common and are heard by the Labour Tribunal.
Employees with 24 months or more of continuous service are entitled to statutory severance payment (redundancy) or long service payment, calculated at two-thirds of the last month's wages per year of service, subject to a statutory cap.
Courts look at the substance of the relationship, not just the contract label. A contractor who works exclusively for you, follows your instructions on how work is done, uses your equipment, and is integrated into your operations may be reclassified as an employee — with retroactive MPF and statutory benefit obligations. If you are uncertain about a particular arrangement, seek advice before formalising it.
Never allow an employee to start work before their visa is approved. Working without the right to work — and employing someone without a valid visa — are criminal offences for both the employee and the employer.
}
Questions about your specific situation in Hong Kong?
Alan Wong LLP advises founders, fund managers, and regional businesses on legal and regulatory matters.
Talk to our team →