Introduction

Hong Kong has long been a strategic hub for international business, offering a gateway to Asian markets with a common law framework and efficient regulatory systems. But while setting up in Hong Kong can seem straightforward, its labour laws carry nuances that global employers must understand to stay compliant and avoid reputational or financial risk.

With a highly mobile workforce, increasing interest in remote hiring, and shifting norms around benefits and working hours, staying up to date with Hong Kong’s employment rules has never been more important. From anti-discrimination laws to MPF obligations, here’s what HR teams and global business leaders should have on their radar.

Quick Tips

• Written contracts are not legally mandatory but strongly recommended for clarity and risk reduction.

• The standard working week is capped at 8 hours per day and 6 days per week - but there is no statutory cap on working hours unless specified in the employment contract.

• The Mandatory Provident Fund (MPF) is a key compliance requirement - both employer and employee contributions are required.

• Termination notice and severance pay depend heavily on length of service and contract terms.

• Employees are protected under anti-discrimination laws covering sex, race, disability, family status, and pregnancy.

Written Contracts and the Importance of Clarity

While not legally required, written employment contracts are best practice in Hong Kong. Without them, disputes over notice periods, bonus entitlements, or work hours are far harder to resolve. At ThinkGlobal HR, we advise all clients operating in Hong Kong to issue bilingual contracts - English and Traditional Chinese - to ensure mutual understanding and to prevent misinterpretations.

In one case, a multinational client relied on a verbal agreement with a Hong Kong-based manager. When performance issues led to termination, there was no documented notice period, and the company ended up paying out an additional three months’ salary. A written contract would have prevented this entirely.

Understanding the MPF System

Hong Kong’s Mandatory Provident Fund is a statutory pension system requiring both employers and employees to contribute 5% of the employee’s relevant income, up to a capped amount. This applies to all full-time and part-time employees aged 18 to 64, unless they are exempt (e.g. non-Hong Kong residents working for less than 13 months).

Non-compliance can result in financial penalties and, increasingly, public scrutiny. Employers must also enrol staff into a registered MPF scheme within the first 60 days of employment. It’s a straightforward requirement - but one that’s often overlooked during cross-border hires or secondments.

We recently supported a client onboarding employees from the UK into their Hong Kong subsidiary. By reviewing local MPF requirements in advance and flagging potential exemptions, we helped the business avoid unnecessary costs while staying compliant.

Termination Rights and Severance

Termination in Hong Kong is relatively flexible by international standards, but it’s not without structure. Employees employed continuously for more than two years are entitled to severance pay if dismissed due to redundancy. Notice periods must be honoured as per contract terms, or payment in lieu must be provided.

Unlawful dismissal - for example, due to pregnancy or trade union activity - can lead to reinstatement orders or compensation. The Equal Opportunities Commission is increasingly active in enforcing anti-discrimination protections, and global businesses cannot afford to get this wrong.

In practice, we advise employers to take care when navigating terminations in Hong Kong. Clear documentation, early consultation, and awareness of protected characteristics can make the difference between a clean exit and a costly tribunal.

A Real Example: Smooth Onboarding at Speed

A client expanding into Hong Kong needed to hire ten employees within six weeks. We acted quickly to build a compliant hiring process - bilingual contracts, MPF scheme setup, and policy handbooks tailored to Hong Kong law. We also trained their UK-based HR team on local working hour norms and public holiday entitlements.

All ten employees were onboarded smoothly, with no delays or compliance issues. What made the difference? Local knowledge applied with pace and pragmatism - and a client willing to ask for help before things went wrong.

Final Thoughts

Hong Kong remains a key destination for global business, but success here relies on getting the details right. Employment law may be less complex than in mainland China, but it is no less important. The right contracts, systems, and local insights can protect your business and support your people from day one.

What’s next for your global people strategy?

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you’re hiring in Hong Kong for the first time or reviewing your existing contracts, our team can help you stay compliant, reduce risk, and build an HR foundation that works across borders.