How to hire in Hong Kong through an EOR

Fixed-term contracts over one month must be in writing, or they'll default to monthly rolling arrangements. For most hires, you'll want an indefinite-term contract. It's the standard in Hong Kong and gives you flexibility without getting caught in renewal cycles.

Indefinite contracts are the most common for good reason. They're straightforward, they work within Hong Kong's Employment Ordinance, and they kick in as "continuous" after four weeks at 18+ hours weekly, which unlocks leave, sickness pay, and other entitlements.

What has to be in the contract

Hong Kong law doesn't require all contracts to be in writing. Verbal agreements do count. But for anything over one month, get it written and signed, or it defaults to a monthly arrangement.

You must include wages (amount, overtime if applicable, allowances), pay period, notice period, and any end-of-year payment details. It's also worth adding job title, duties, hours, leave entitlements, and termination terms to avoid ambiguity later. There's no language requirement, but use English or Chinese to match your hire.

Probation has no maximum length under Hong Kong law. In the first month, you can terminate without notice. After that, it's seven days' notice, or whatever your contract specifies, whichever is longer. Spell it out clearly in the contract.

Contractor vs employee

Misclassification is a real risk. Courts look at the reality of the working relationship, not just what the contract says. They consider things like control over work, how you pay (salary vs invoice), who provides tools, exclusivity, and how integrated the person is in your business. High control typically points to employment.

If a contractor is reclassified as an employee, you're looking at backdated taxes, MPF contributions (5% each on earnings up to HKD 30,000/month), holidays, and severance. Fines start at HKD 5,000 per breach, plus damages that can reach HKD 50,000+ per case depending on underpayments. The Labour Department investigates complaints, and enforcement has increased since 2024.

Non-competes are enforceable if they're reasonable. That means protecting a legitimate interest like client lists, limiting the restriction to 6-12 months, and keeping the geography narrow (for example, Hong Kong only). Blanket bans don't hold up in court. On IP, employees own their inventions unless the contract says otherwise, so assign it explicitly upfront.

For employees, use written indefinite contracts. If you don't have a local entity, an EOR can take on the classification risk for you. If you're unsure whether someone qualifies as a contractor, get a lawyer to check before you commit. One misstep and you could be paying years of backdated benefits.

Hong Kong's statutory annual leave starts at just 7 days after one year of service. That's well below what most competitive employers actually offer, and it surprises a lot of hiring managers new to the market.

Here's how the legal minimums work, and what you'll realistically need to offer to attract good candidates.

Time off

Employees on a continuous contract (at least 18 hours a week for 4+ weeks) earn 7 paid annual leave days after 12 months. That number rises with tenure: 8 days after 3 years, up to 14 days after 9 years. You set the timing after consulting them, with 14 days' written notice required.

Leave accrues over a 12-month period and must be taken the following year. If someone leaves mid-year, pro-rata pay applies. Public holidays add another 14-17 days off (rising to 17 by 2030), all paid unless they fall on a rest day.

All leave types

Here's what the law requires. Pay is calculated at average daily wages unless noted, and employees have job protection during leave.

Other leave types include study leave (discretionary) and rest days (1 per week, paid if a gazetted holiday falls on it).

Mandatory benefits

Hong Kong's mandatory benefits are fairly straightforward. There's no required health insurance or meal vouchers. Employers and employees each contribute 5% to the MPF (Mandatory Provident Fund), capped at HK$1,500 per month per side. Employees aged 18-64 contribute, and you match for anyone earning HK$7,100 or more per month.

Social security for low-income workers runs through CSSA, which isn't employer-funded. Severance pay kicks in after 24 months of service, calculated at 2/3 of monthly pay per year served, subject to a cap. There's no requirement to provide transport allowances.

What people actually expect

Most candidates in Hong Kong treat 7-14 days of annual leave as the floor, not a selling point. Tech and finance companies typically offer 15-21 days plus 2-3 personal days on top. If you're sticking to the statutory minimum, you'll likely struggle to hire for skilled roles.

Private health insurance is effectively standard. Most employers cover hospitalisation and outpatient care for employees and their families, and many add dental and annual check-ups. It's one of the benefits candidates pay close attention to.

Remote work stipends of HK$500-1,000 per month are common, particularly for hybrid roles. 13th and 14th month bonuses are near-universal and are usually treated as contractual, paid out before Lunar New Year and Christmas.

To compete for strong candidates, you're looking at 18 or more annual leave days, full private medical cover, and a bonus structure that matches the market. Flexible hours, education allowances, and generous sick leave policies also matter to top talent. Without these, you're likely to lose candidates to employers who offer them.

Firing someone in Hong Kong without a valid reason can land you in court. The Labour Tribunal leans toward employees, so document everything or risk paying compensation for unfair dismissal.

Firing someone

Valid reasons for termination include employee conduct, capability, redundancy, legal issues, or other substantial grounds. Summary dismissal without notice is only allowed for serious misconduct: willful disobedience of lawful orders, fraud, dishonesty, or habitual neglect of duties. Courts treat this as a high bar and require proof of a fundamental breach.

Unfair dismissal applies when there's no valid reason, and the risk is higher for employees with 24+ months under a continuous contract. You can't fire someone during pregnancy (after notice), paid sick leave, trade union activities, work injury claims, or for giving evidence in employment law cases. Protected categories include pregnancy, sickness, union membership, and injury compensation periods.

Hong Kong is employee-friendly. Tribunals regularly award compensation when employers can't prove a valid reason. Warn employees first and keep records of everything.

Notice periods

Notice depends on where someone is in their probation and what the contract says. There's no notice required in the first month of probation. After that, the minimum is 7 days unless you've agreed to something else. Post-probation, the default is 1 month if the contract doesn't specify.

Severance

Severance is only required for redundancy after 24+ months under a continuous contract. It doesn't apply to summary dismissal or most other terminations. If someone has 5+ years of service and leaves for reasons other than redundancy or summary dismissal, long service payment applies instead.

The formula is 2/3 of monthly wages per year of service, prorated for partial years, capped at HK$390,000 (as updated in 2020). For example, 3 years at HK$30,000 monthly: (2/3 x 30,000) x 3 = HK$60,000.

Work permits and visas

You can hire foreign nationals through an EOR. Because the EOR is the legal employer and holds the Hong Kong entity, they sponsor the work visa on your behalf.

The main visa categories are: General Employment Policy (GEP) for skilled professionals with a job offer, proven qualifications, and a salary that matches local benchmarks (often HK$20,000+ monthly) with no suitable local candidates available; Intra-Company Transfer for executives moving within a multinational; and the Top Talent Pass Scheme for high earners (HK$2.5M+ annually) or top university graduates, which is fast-tracked. There's no digital nomad visa.

Expect 4-8 weeks for approval after submission to ImmD. You'll need a job offer letter, proof of qualifications, and company documents. The EOR handles sponsorship, but you'll need to provide the role details. Visas typically renew every 2-3 years.

Compliance essentials

A significant change takes effect January 18, 2026: the continuous contract threshold shifts from 18 hours/week over 4 weeks (the 4-18 rule) to 17 hours/week or 68 hours over 4 weeks (the 4-68 rule). This brings more part-time workers into statutory entitlements like leave, severance, and allowances. Missing it can mean fines up to HK$50,000 per breach, tribunal claims, or prosecution. Review your part-time schedules now.

Data protection falls under the PDPO. You need consent to collect employee data, must store it securely, and should notify the relevant parties if there's a serious breach. There are no major regulatory shifts between 2024-2026, but aligning with global standards is worth doing to avoid claims.

Trade unions exist in Hong Kong but have limited influence, with membership below 20% and no strong collective bargaining framework. Amendments to the Trade Union Ordinance take effect January 5, 2026, making registration easier but not requiring employers to reach agreements. Unless you're in a union-heavy sector, this probably won't affect your day-to-day.

A few other things to keep on your radar: MPF contributions are mandatory, and offsets are phasing out in some cases by 2025. The minimum wage updates annually. An EOR can help you stay on top of these, but it's worth confirming their setup actually covers all of them.