How to hire in Hong Kong?

Key Takeaways

• Employers in Hong Kong are required to contribute to the Mandatory Provident Fund (MPF)
• Employment contracts must be made in accordance with the Employment Ordinance, or they will be invalid. 
• The employer’s return, or BIR56A and IR56B, is an annual requirement by the IRD to comply with the government, regardless of whether the employer has employees or not. 
• An individual must be at least 18 years old to work legally in Hong Kong.

Imagine this: you’re an entrepreneur seeking opportunities in Hong Kong and have decided to open a company there. After the company formation process is completed, the next question is: “How to hire workers in Hong Kong?” Most of our clients establish companies in Hong Kong, but they mainly do not operate in Hong Kong. Regardless, do not fret. 

This article will provide details on hiring requirements and employer responsibilities. Furthermore, we will provide you with four platforms and some crucial reminders to help you identify the ideal candidates to hire in Hong Kong. If you’re a startup owner, this is an article for you to help you navigate through the complex system of hiring in Hong Kong. 

Hiring Requirements in Hong Kong

Hiring employees in Hong Kong can be pretty straightforward if you know the rules and regulations. The basic rule in Hong Kong is that an individual must be at least 18 years old to work legally in the territory. While individuals between 13 and 18 can still work, there are strict restrictions on the type of work they are allowed to perform. 

The age restrictions may raise the question, “Can a student be hired in Hong Kong?” The answer is yes; students can also be hired full-time or part-time in Hong Kong, provided they are permanent residents and Hong Kong citizens. Students who are employed, regardless of their position, are still required to contribute to the Mandatory Provident Fund (MPF), and salaries can be paid on a semi-monthly or monthly basis. 

Employer Responsibilities when Hiring in Hong Kong

Employers are required to complete these obligations to their employees before, during, and after their employment. Employers are required to draft the employment contract, file the annual employer’s return, submit tax clearance, and make a contribution to the Mandatory Provident Fund Scheme (MPF). 

Employment Contract Drafting

Drafting an employment contract in Hong Kong must adhere to every detail of the Employment Ordinance. Although the contract terms can be flexible in Hong Kong, provided both the employee and employer agree on the terms and conditions, the contract must still contain the standard information required for a contract to be valid. Here are some of the basic requirements in an employment contract in Hong Kong in accordance with the Employment Ordinance: 

• Job Title – The position of the employee after the commencement of the employment. 
• Salary Amount – The amount of money earned by the employee on an hourly/monthly basis. 
• Duration of the Contract – How long will the contract of employment last? 
• Number of Working Hours Daily – The number of working hours and the schedule the employee must follow. Can be either hour or day. 
• Benefits and Leaves – This includes all benefits to which an employee is entitled, as well as the number of leaves and bonuses received upon contract fulfillment. 
• Name of the Employee – The name of the employee on the HKID, along with their HKID number
• Name of the Employer – The name of the hiring party, which can be an individual or a corporate entity. 
• Employment Commencement Date – The date upon which the employee begins work
• Terms for Contract Termination – the allowed period of time to give notice before the termination of the contract for both parties. 

Annual Employer’s Return Filing

BIR56A and IR56B are the official document forms from the IRD for filing the annual employer return. The employer return is meant for the Inland Revenue Department (IRD) to track the employee’s salary tax liabilities. An employer who has been sent an employer return by the IRD, regardless of having no employees, is still required to complete it and file it with the Inland Revenue Department. 

Employers are required to provide accurate information on the details below for the Inland Revenue Department to calculate the employee’s salary tax each year accurately. This information includes the following:

• Salary
• Cash Allowances
• Bonuses
• Commisions
• Housing Benefits
• Educational Benefits
• Paid Leaves
• Termination Allowances
• Mandatory Provident Fund (MPF) contributions

The Mandatory Provident Fund Scheme (MPF)

As an employer in Hong Kong, contributing to the Mandatory Provident Fund Scheme (MPF) is a requirement since there is no need to withhold taxes from the employee’s salary. The Mandatory Provident Fund Scheme (MPF) is a government fund that acts like an employee’s retirement fund. The minimum contribution rate is set at 5% of an employee’s monthly salary. The employer is also required to contribute the exact amount from their own pocket into the Mandatory Provident Fund. 

Failing to comply with this legal requirement may result in legal action by the government. Legal action may be necessary to recover the amount that’s due. 

4 Platforms to Hire in Hong Kong

Hong Kong Labour Department

Most startups and SMEs prefer to save costs and often start with platforms that are free of charge. Hence, the free job posting system maintained by the Hong Kong Labour Department is always the top pick.  Before you can place an advertisement on this website, you have to provide the labour department with your business registration license. They will also conduct a simple background check before creating an advertisement account for you. 

Indeed

If you are looking for candidates who can communicate in English fluently, Indeed is an ideal platform for your needs. Indeed platform works like a search engine. You can post an advertisement free of charge, or you can also choose to sponsor your post to boost its exposure. Based on our experience, each free job posting can typically attract 5–8 candidates.  To create an account at Indeed, you will need to provide them with your business registration license.

Jobsdb

If you cannot find any ideal candidates from the above platforms, you can consider Jobsdb. Jobsdb is the most popular hiring platform in Hong Kong.  Each advertisement can attract around 50 – 100 resumes. However, this platform is quite expensive. They often made you purchase a bundled package, but the validity period was relatively short.

cpjobs

The last platform I want to mention is Classified Post. If you are looking for professional candidates with solid working experience, you can often put your advertisements in the Classified Post section of the South China Morning Post. Get Started HK has hired a few practicing accountants and Chartered secretaries through this channel in the past. However, entrepreneurs should understand that this group of professional candidates usually requests a higher salary.

A Final Note

As a reminder, an employer should collect only the personal data necessary to make a hiring decision.  During the job interview, the employer should not request a copy of the applicant’s identity card or detailed personal information unless it is relevant to the selection process.

From our experience, entrepreneurs may want to avoid asking for information related to:

• Nationality
• Marital status
• Disability
• Religion
• Sexual orientation

If the above is necessary, it is best to state the reason on the application form to avoid dispute. For details, please click here to check out information from the Equal Opportunity Committee.

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