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The main legislation that makes up the labor laws in Hong Kong is the Employment Ordinance, which regulates key areas of employment, including:
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.
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.
Thee minimum is 7 days notice, unless the employee is on a probationary period. This should be specified in the employment contract.
Under the EO, employees are eligible for either severance payment or long service payment subject to the following conditions:
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 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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In Hong Kong, the most relevant legal documents related to employment law are the Employment Ordinance and the Employees Compensation Ordinance.
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.
The employee may terminate the employment contract during the probationary period with no notice.
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.
