HongKong

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Employment Laws and Rights

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Employment Laws and Rights in Hong Kong, China

Hong Kong has a well-defined legal framework governing employment relationships, primarily outlined in the Employment Ordinance (EO), which is the main piece of legislation regulating employment matters. Below is a comprehensive guide to the key aspects of employment laws and rights in Hong Kong, categorized for clarity.

1. Minimum Wage

  • Statutory Minimum Wage (SMW):

    • As of May 1, 2023, the statutory minimum wage in Hong Kong is HKD 40 per hour.
    • The SMW applies to all employees, except certain exempted categories such as live-in domestic workers, student interns, and work experience students.
    • Employers must ensure that employees are paid at least the minimum wage for all hours worked.

  • Compliance Considerations:

    • Employers must maintain proper wage records for at least 7 years.
    • Non-compliance can result in fines of up to HKD 350,000 and imprisonment for up to 3 years.

2. Working Hours

  • Standard Working Hours:

    • Hong Kong does not have statutory standard working hours. However, working hours are typically governed by employment contracts.
    • Overtime pay is not mandatory unless specified in the employment contract.

  • Rest Days:

    • Employees are entitled to at least 1 rest day per week, which must be a continuous 24-hour period.

  • Meal Breaks:

    • There is no statutory requirement for meal breaks, but they are often included in employment contracts.

3. Leave Entitlements

  • Annual Leave:

    • Employees are entitled to paid annual leave after completing 12 months of continuous service. The entitlement increases with years of service:
      • 1 year: 7 days
      • 2 years: 8 days
      • 3 years: 9 days
      • Up to a maximum of 14 days after 9 years of service.

  • Statutory Holidays:

    • Employees are entitled to 13 statutory holidays per year. If a holiday falls on a rest day, a substitute holiday must be provided.

  • Sick Leave:

    • Employees earn 2 paid sick leave days per month during the first 12 months of employment and 4 days per month thereafter, up to a maximum of 120 days.
    • To claim paid sick leave, employees must provide a medical certificate and have accumulated sufficient sick leave days.

  • Maternity Leave:

    • Female employees are entitled to 14 weeks of paid maternity leave if they have been employed under a continuous contract for at least 40 weeks before the expected due date.
    • Maternity leave pay is calculated at 4/5 of the employeeโ€™s average daily wages.

  • Paternity Leave:

    • Male employees are entitled to 5 days of paid paternity leave if they have been employed under a continuous contract for at least 40 weeks.

  • Other Leave:

    • Employees are entitled to compassionate leave and jury duty leave, though these are not statutory and depend on the employerโ€™s policies.

4. Termination Procedures

  • Notice Period:

    • The notice period for termination is typically specified in the employment contract. If not, the default notice period under the Employment Ordinance is:
      • 7 days for employees paid on a daily or weekly basis.
      • 1 month for employees paid on a monthly basis.

  • Severance Payment:

    • Employees are entitled to severance pay if they are dismissed due to redundancy and have been employed for at least 24 months under a continuous contract.
    • The formula for severance pay is:
      • 2/3 of the employeeโ€™s last full monthโ€™s wages ร— years of service, capped at HKD 390,000.

  • Long Service Payment:

    • Employees who are dismissed (other than for serious misconduct) after at least 5 years of service are entitled to a long service payment, calculated using the same formula as severance pay.

  • Unlawful Termination:

    • Termination on grounds such as pregnancy, union membership, or filing a complaint against the employer is prohibited.
    • Employers found guilty of unlawful termination may face fines and be required to reinstate or compensate the employee.

5. Anti-Discrimination Laws

  • Key Legislation:

    • The following ordinances protect employees from discrimination in the workplace:
      • Sex Discrimination Ordinance (SDO)
      • Disability Discrimination Ordinance (DDO)
      • Family Status Discrimination Ordinance (FSDO)
      • Race Discrimination Ordinance (RDO)

  • Prohibited Grounds of Discrimination:

    • Gender, pregnancy, marital status, disability, family status, and race.

  • Harassment:

    • Sexual harassment and racial harassment are explicitly prohibited under the law.

  • Enforcement:

    • Complaints can be filed with the Equal Opportunities Commission (EOC).
    • Employers found guilty of discrimination may face fines and be required to compensate the affected employee.

6. Associated Costs

  • Mandatory Provident Fund (MPF):

    • Employers and employees are required to contribute to the MPF scheme.
    • Contribution rate: 5% of the employeeโ€™s relevant income, capped at HKD 1,500 per month.
    • Employers must enroll employees in an MPF scheme within 60 days of employment.

  • Employee Compensation Insurance:

    • Employers are legally required to purchase employee compensation insurance to cover work-related injuries or illnesses.

7. Required Procedures

  • Employment Contract:

    • Employers must provide a written employment contract specifying terms such as wages, working hours, and leave entitlements.
    • Both parties should sign the contract, and a copy should be provided to the employee.

  • Record-Keeping:

    • Employers must maintain detailed employment records, including wage payments, leave entitlements, and working hours, for at least 7 years.

  • Work Visa Requirements:

    • Foreign employees must obtain a valid work visa under the General Employment Policy (GEP) or other relevant visa schemes.
    • Employers must sponsor the visa application and demonstrate that the position cannot be filled by a local candidate.

8. Local Site Considerations

  • Labour Department:

    • The Hong Kong Labour Department provides resources and support for both employers and employees. They handle complaints, provide mediation services, and enforce employment laws.
    • Website: www.labour.gov.hk

  • Equal Opportunities Commission (EOC):

    • The EOC addresses discrimination complaints and promotes equal opportunities in the workplace.
    • Website: www.eoc.org.hk

  • Labour Tribunal:

    • Employment disputes that cannot be resolved through mediation can be taken to the Labour Tribunal for adjudication.
    • The Labour Tribunal is a cost-effective and efficient forum for resolving employment disputes.

9. Penalties for Non-Compliance

  • Employers who fail to comply with employment laws may face:
    • Fines ranging from HKD 10,000 to HKD 350,000.
    • Imprisonment for up to 3 years for serious violations.
    • Civil liability for damages or compensation to employees.

Conclusion

Hong Kongโ€™s employment laws are designed to protect both employers and employees, ensuring fair treatment and compliance with statutory requirements. Employers must familiarize themselves with the Employment Ordinance and related legislation to avoid legal disputes and penalties. Employees should also be aware of their rights to ensure they are treated fairly in the workplace. For further assistance, consult the Labour Department or seek legal advice.