Yes, you can hire foreigners who have a valid work visa. The Hong Kong government advises employers to give first preference to the local workforce for filling job vacancies, but foreigners who possess special skills, knowledge or experience are allowed to enter and stay in Hong Kong for employment as professionals. As an employer, you should assist your employee apply for a working visa, before they could begin working in Hong Kong. More details on the application process can be found on the Immigration Department’s website. It is a criminal offence for a foreigner to work in Hong Kong without a valid work visa.

Yes, it is possible to hire students without paying them minimum wage. A student employee is exempt from the Minimum Wage Ordinance. To qualify as a student employee, the student must be a Hong Kong resident enrolled in full-time education. There are 2 types of student employees, including the work experience intern and the student internship. The main difference is that the former requires the internship to be arranged or endorsed by their educational institutions and form a compulsory or elective component of their programmes, but the latter does not.  Before their internship commences, an internship agreement should be signed by the employer and the intern. Additionally, the student employee must complete the confirmation of student status and additionally, a statutory declaration if they are a work experience intern. You should also keep a copy of the document(s) for record-keeping purposes.

Varying an employment contract involves changing, removing or adding in terms and conditions of an employment contract after it had been signed. It is possible for you to vary an employment contract, but you must have your employee’s consent and have a valid reason for doing so. Formalities for variating a contract Under the Employment Ordinance: An employer must inform the employee of such change clearly to the employee, whenever there is any change in the employment conditionsan employer must provide his employee with a copy of the written amendment immediately after the amendment is reduced to writing or validate, where there is any written amendment to the employment conditions,  Reasonable variation of a contract There are 5 valid reasons for varying a contract per the Employment Ordinance, including:  i) the conduct of the employee; ii) the capability or qualifications of the employee for performing his work; iii) redundancy or other genuine operational requirements of the business; iv) statutory requirements; or v) other substantial reasons. With regards to i), the employment contract can be varied if the employee: a. wilfully disobey any lawful and reasonable orders; b. are guilty of misconduct; c. are guilty of fraud or dishonesty; or d. are habitually neglectful in their duties.

Yes. Within 3 months of employing a person, you will need to fill in the IR56E form to inform the Inland Revenue Department, if you anticipate that the employee is likely to be chargeable to Salaries Tax. You should also submit the report remuneration paid to the employee by submitting either IR56B or IR56M. Hiring a new employee On hiring the employee, you have an obligation to maintain a record of that person's : (a) personal particulars (name, address, identity card or passport number with place of issue, marital status) (b) nature of employment (full time or part-time) (c) capacity in which employed (e.g. sales manager, salesman, worker, in-house lawyer, accountant, director) (d) amount of cash remuneration (e) non-cash and fringe benefits (such as quarters, holiday journey benefits, share award, share option) (f) employer's and employee's contributions to the Mandatory Provident Fund (MPF) or its equivalent The IR56E form should be completed within 3 months from the date of commencement of employment, and sent to the Inland Revenue Department. A failure to do so may result in a fine of $10,000. Report remuneration Employers would be required to complete the IR56B form  (namely Employer's Return of Remuneration & Pensions)  for each of their employees. You would need to fill in their personal details and salary details in the form to report their remuneration to the Government within 1 month of receiving notification to do so. Most income items are taxable in Hong Kong, except for some compensation items exempted by the Inland Revenue Ordinance, and for Severance Payment, Long Service Payment and Jury Fees. Independent contractor If your worker is not an employee, but a consultant, agent, broker, freelance artist, entertainer, sportsman or writer etc., and you pay the worker remuneration exceeding $25,000 per annum, you should file the form IR56M instead. Key takeaways Employers are

Sickness or injury - No Employees may not be able to work due to sickness or injury. In this case, this will not break the continuity of continuous employment. However, if there is any absence of work for more than 48 hours then it should be supported by a medical certificate issued by a registered medical practitioner, registered Chinese medicine practitioner or registered dentist. (see paragraph 3(2) (a) - First schedule) Transfer of business - No If a business, trade or undertaking is transferred to another owner, the continuity of employment is not broken. (see paragraph 5 - First schedule) Different work for the same employer - No In the commercial world, it is common that employees might work for the same employer under different employment contracts (even for different jobs in different departments). This will not break the continuity of the contract. (see paragraph 6 - First schedule) If there is any dispute, as an employer, you are responsible for proving that there is no continuous contract.

Employees who are continuously employed are entitled to many additional benefits under the Employment Ordinance. Therefore, as an employer, it is important to understand if your employees are under a continuous contract or not. According to the Employment Ordinance, an employee who has been employed by the same employer for four weeks or more, with at least 18 hours worked in each week, is regarded as being employed under a continuous contract of employment.  This is applicable for both full-time and part-time employees. Benefits and Entitlements All employees are entitled to certain basic benefits such as: Payment of wagesRestriction on wage deductionsStatutory Holidays However, Continuous employees are entitled to additional benefits: Rest daysPaid annual leaveSickness allowancePaid maternity leave and paternity leaveSeverance / long service payments, provided other conditions are met by the employee.

As an employer, you must be aware whether your worker is an employee or an independent contractor, as it would greatly affect the rights and benefits you must provide for your worker. Difference between employee and independent contractor Different factors may be considered to distinguish between an employee and independent contractor, but these factors are not conclusive indications of the employment status. Factors that may be consideredEmployeeIndependent contractorControl over work procedures, working time and method✖✔The person is carrying on business on his own account with investment and management responsibilities✖✔The person is not properly regarded as part of the employer’s organisation✖✔Whether the person is free to hire helpers to assist in the work✖✔Bearing of financial risk over business (e.g. any prospect of profit or risk of loss)✖✔ Ultimately, the decision rests on the court to determine the employment status of a worker. A sample of an independent contractor contract can be found here. Rights and benefits of an employee and independent contractor Only employees would be entitled to the rights and benefits provided under the Employment Ordinance, as it usually only applies to employers and employees who are engaged under contracts of employment. To avoid unnecessary disputes, an employment contract should separate between an employee and a contractor (or self-employed person). Rights and benefitsEmployeeContractor or Self-employed personEntitled to basic protection under the Employment Ordinance. If engaged under a “continuous contract”, also entitled to employment benefits such as paid annual leave, statutory holiday pay, sickness allowance, severance payment or long service payment, etc.✔✖Entitled to protection under the Minimum Wage Ordinance, including the statutory minimum wage✔✖Entitled to protection under the Employees’ Compensation Ordinance, including sick leave and compensation

The Employment Ordinance does not differentiate between full-time and part-time employees. Part-time workers are entitled to the same protection and benefits as full-time workers. These include protection under the Minimum Wage Ordinance and Employment Ordinance, as well as MPF contributions. There is currently no legislation on maximum working hours or maximum overwork time. However, the working hours including overtime hours should be clearly stated on a written and signed employment contract, to maintain a good working relationship with your employee.

No, verbally agreed employment contracts are legally enforceable. But you are strongly advised to have a written employment contract. Benefits of written contracts There are multiple benefits of having a signed written employment contract, which includes: Specifying explicitly and serves as evidence of the employment terms and conditions;Reminding both employers and employees of their contractual obligations;Protecting the interests of both parties; andMinimising unnecessary labour disputes. What goes into an employment contract Per the Employment Ordinance, an employer must include the following in their employment contract: Wages (including rate of wages, overtime rate and any allowances, whether calculated by the piece, job, hour, day, week or otherwise);Wage period;Length of notice required to terminate the contract; andEnd of year payment or proportion of it and the payment period (if applicable).Other employment conditions such as working hours, holidays arrangements, etc., should also be clearly specified. If the contract of employment is in writing, the employer is required to provide a copy of the contract to the employee immediately after it is signed or validated. A copy of a standard employment contract can be found here.

Hiring employees is essential to a business, so as an employer, you must be aware of the requirements and process of hiring an employee. Who you can hire You should comply with the guidelines issued by the government to avoid discrimination in the workplace. Employers should hire people based on their abilities, aptitude and knowledge and should not turn down people just because of their gender, disability, family status, race or age. You can employ anyone aged 15 or above, however, young persons (15-18 years old) employed in industrial undertakings are subject to working hour regulations according to the Employment Ordinance. You can employ students and foreign workers (subject to VISA requirements) too. Employment rules The Employment Ordinance states the relevant rights and benefits offered to all employees. For example, those who are working under a continuous contract of employment are entitled to benefits such as maternity leave and annual sickness days. The Minimum Wage Ordinance states that employers must pay employees at least a minimum wage (which is HK$37.5/ hour in 2021). The employment rules apply to all employees, but they may not apply to independent contractors or the self-employed. Paperwork requirements There are 4 documents you will require to hire an employee in Hong Kong, including: PaperworkWhen it should be completedWhat you must do Employment contractBefore the date of commencement of an employment contractAn employment contract, preferably written, should be agreed by both parties.It must include the wage, wage period, termination notice period and any end of year payment.InsurancePurchase insurance for your employee(s).MPFWithin 60 days of employmentEnrol your employee into an MPF schemeOn the 10th day of this month, make your first MPF contribution to the employeeTaxWithin 3 months of commencementFill in the taxation form to the Inland Revenue Department