Employment Contracts in Hong Kong

Apart from limited exceptions, the Employment Ordinance applies to all employees engaged under a contract of employment in Hong Kong. Employee rights are governed by the provisions of the Employment Ordinance, other applicable ordinances, their contracts of employment, and common law principles.

All employment in Hong Kong is contractual, with no concept of “at-will” employment. Although not mandatory, a written contract is recommended to avoid disputes over employment terms. Employers usually issue a comprehensive offer letter with standard terms and conditions, providing a copy to the employee immediately upon execution.

If an employee requests a written contract before commencing employment, the employer must provide written particulars of certain conditions, including wages, the wage period, and the notice required to terminate employment. In the absence of explicit agreement on certain provisions, the Employment Ordinance mandates many of the terms and sets minimum standards for contracts.

Relevant issues under Hong Kong legislation for employers include wages, bonuses, annual leave, maternity/paternity leave, sick leave, termination of employment, data privacy, equal opportunities, and occupational safety and health.

Employers often supplement the offer letter and standard terms with an employment handbook that details company policies and rules.

Employers in Hong Kong may also reward top management and key employees with shares or options. When considering a stock option plan, attention should be paid to issues relating to securities, employment law, data privacy law, tax, and regulations under the Occupational Retirement Schemes Ordinance and the Mandatory Provident Fund Schemes Ordinance. Stock option plans of listed companies are governed by the Listing Rules of the Hong Kong Stock Exchange.

Mayon Solutions Limited is pleased to provide further information or advise on existing contracts, incentive plans, stock option arrangements, or benefits plans. We regularly advise on all aspects of the employment relationship, including drafting or reviewing NDAs, non-competition provisions, confidentiality and intellectual property agreements, secondment arrangements, and cross-border employment-related issues.

Contact us: sales@mayon.hk