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HR and Payroll Outsourcing Service

Employment Relationship

After you set up a Hong Kong limited company, you may have a concern as to how to hire workers in Hong Kong. The Hong Kong government illustrates important points to note at its’ website for the labour department.

As a reminder, an employer should seek only those personal data that are necessary to enable a hiring decision to be made and employer should not request for a copy of applicant’s identity card, detailed personal information, unless it is relevant to the selection process.

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

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

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

Click here for details of the Employment Ordinance in Hong Kong.

Guidelines in Collection of Personal Data

Collection of Personal Data

After setting up a limited company in Hong Kong, it is common for Hong Kong companies to collect personal data of customers for direct marketing. We kindly ask our client to note that the Personal Data ( Privacy) Ordinance, Cap 486, has come into force since 1996 and it generally restricts companies in Hong Kong to collect excessive personal information. Moreover, When your Hong Kong company use personal data for direct marketing at the first time, the company has an obligation to inform the individual of his “opt-out” right from direct marketing.

Personal data means any data:-

  • relating directly or indirectly to a living individual;
  • from which it is practicable for the identity of the individual to be directly or indirectly ascertained; and

As per Case law Chow Kei Leung and The Privacy Commissioner of Personal Data in 2010, personal data includes, but not limited to, name, age, identity number, address, occupation, and nationality.

Disclaimer: The above is not a legal advice. If you have any questions, we are happy to share our business experience. You are recommended to seek legal advice as appropriate.

Preparation of Employment Contract in Hong Kong

It may be a challenging task for start-up companies to prepare an employment contract. While you can ask our incorporation staff to provide you with a standard template, you can draft one by taking note of the followings.

Under section 44 of the Employment Ordinance, employer must inform employee of the conditions of employment, including but not limited to wages, i.e. wage rate, overtime rate and any allowances, wage period, length of notice required to terminate the contract, and end of year payment and the payment period (if any).

Under section 70 of the Employment Ordinance, any term of an employment contract, which purports to extinguish or reduce any right or protection conferred to an employee by the Ordinance, shall have no legal effect. In other words, even if an employee signs and agrees with the terms, the terms will be considered invalid.

Change of terms and conditions during employment

If you have to make any change to the conditions of employment, clients are reminded to explain the proposed change to their employees. We recommend you to conduct a consultation with employees if you have to change material terms of the contract. If both parties agree to the change, the employer must give a copy of the written amendment to the employee upon receipt of written request. For details, please see section 45 of the Employment Ordinance.

While GSHK does not provide legal advice, our staff will be happy to share our business experience. Alternatively, you can contact practicing solicitors for independent legal advice.

*Note: GSHK is not an employment agency. We specialize in incorporation matters while we understand non-local clients may require comprehensive guidance and support. Hence, we’d be happy to answer any of your questions so you can focus to develop your business.

Retirement Fund in Hong Kong

What are your obligations if you hire staff in Hong Kong?

After the registration of company, there are some regulations and common practice in Hong Kong you need to be aware of. For example, MPF enrolment is one of employers’ obligations.

Due to the low birth rates in Hong Kong, the Government has introduced the Mandatory Provident Fund in Hong Kong. Employers and employees are each required to make regular mandatory contributions of 5% of the employee’s relevant income to an MPF scheme for every contribution period. The current minimum and maximum relevant income level are $7,100 and $30,000 per month respectively.

Find out whether you should participate in the MPF System

In general, for employees who has an employment visa which does not exceed 12 months or the person is a member of a provident or retirement fund overseas, he or she is exempt from enrolling into the scheme. Contact us today for details.

Need instant advice? Feel free to contact us! Call +852 2813 7600