Hiring in Hong Kong

The terms set out role, salary in HKD, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is the standard contract language for commercial roles, with Chinese used alongside it where the employee prefers.

Fixed-term contracts are permitted, but back-to-back renewals can count as one continuous period for severance and long service payments, so most EORs default to indefinite terms.

Set probation from day one. An extension needs the employee's agreement and a documented reason.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

There is no statutory overtime rate or hours cap, so hours and overtime are set by the contract. Most statutory entitlements depend on a continuous contract, which since 18 January 2026 means at least 17 hours a week, or 68 hours over four weeks.

Full-time professional hires clear that test easily, so the practical question is overtime. Put the position in writing, including whether it is paid, given as time off in lieu or absorbed into salary.

Market practice for professional roles is 14 to 20 days, well above the statutory floor, and most office employers give all 17 general holidays rather than the statutory 15. Budget on the market figures.

Paid sick days build up at 2 a month in year one and 4 a month after that, paid at four-fifths of wages. Maternity leave is 14 weeks, partly reimbursed by the government and partly employer funded, so confirm which side the EOR carries.

Either side may terminate on notice or pay in lieu, and the default is one month's notice where the contract is silent. Severance and long service payments follow a statutory formula, capped at HK$390,000, and employers can no longer offset them against mandatory MPF contributions made from 1 May 2025.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay within 7 days, unused leave and any contractual bonus. Dismissal is restricted during pregnancy, paid sick leave and after a work injury, and employees with 24 months' service can claim unreasonable dismissal, so keep a documented reason.

Private medical cover, dental and group life are standard for professional roles even though they are not mandatory. Foreign hires on assignments of 13 months or less, or who belong to an overseas retirement scheme, can be exempt from MPF.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 5% on top of gross salary, capped at HK$1,500 a month. That is before the EOR fee.

Departure notification is the trap. When an employee is leaving Hong Kong for more than a month, the employer must notify the Inland Revenue Department at least one month ahead and hold back money due to them for one month from that notice, so build that into the offboarding timeline.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the visa is tied to the sponsoring employer, not to you. Mainland Chinese hires use a separate scheme, and some candidates qualify for talent schemes that need no sponsor.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. The statutory restriction on cross-border transfers is still not in force, but the regulator recommends model contractual clauses, so use them.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick, but the running cost is the point: a company secretary based in Hong Kong, a registered office, a full statutory audit every year whatever the company's size, profits tax filings and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.