PEO & Employer of Record (EOR) in Hong Kong
Expand Your Business With Our Hong Kong PEO
GlobalPEO delivers a top tier employer of record service for clients that are looking to recruit, hire, and operate payroll services without first setting up their own subsidiary in Hong Kong.
How it Works: Our Hong Kong PEO & Employer of Record (EOR) hires your candidate while abiding by local labor laws and cultural customs. The newly hired employee will communicate directly with your company and perform all job functions as if they were your own employee. We act as your in-country HR department and handle the entire onboarding, payroll, and benefits process in strict accordance to Hong Kong’s regulations.
Why Choose our Hong Kong PEO?
Without needing to setup a local entity in Hong Kong, companies save thousands when expanding with GlobalPEO. From $400 USD.
Scale and onboard your workforce in days, not months by using our local entities and experts in Hong Kong.
Minimize risk by ensuring your company is compliant with local laws and cultural customs and protecting your business from potential fines and legal fees.
Streamlined process for managing your payroll, benefits, and HR responsibilities with full flexibility to make changes at any time.
Hong Kong PEO & Employer of Record
Hire, onboard, and manage employees in Hong Kong quickly and easily with GlobalPEO. Working with our Hong Kong PEO and Employer of Record solution eliminates the headaches that come with establishing a foreign legal entity and guarantees full compliance with local regulations.
Local Employer of Record
Your employees based in Hong Kong will sign a local employment contract with GlobalPEO's in-country entity. Labor contracts are available in English and Chinese, with employee payments processed in the local Hong Kong dollar currency. As the local Employer of Record, GlobalPEO operates with full compliance to the laws and regulations of Hong Kong's Bureau of Labor.
Payroll Processing
GlobalPEO's complete payroll processing includes:
- New employee setup
- Social Insurance contributions
- Individual income tax declaration
- Expenses declaration
- Payslip provision
- Dedicated payroll officer
- Support for standard employment documents
Employee Onboarding
After officially hiring your local candidate, our Hong Kong HR team will schedule an onboarding conference call with both the candidate and client. The onboarding process typically takes between 3-5 days.
Legal Liability Coverage
Our PEO solution covers the following functions to take legal liability as the local employer of record:
- Obligatory social and pension insurance enrollment.
-Employee income tax withholding
- Liabilities of early-termination, including severance calculation and mediation.
- Onsite health and safety liability coverage, which is shared with the client
Termination Guidelines
In the event a client decides to pause or end their presence in Hong Kong when employing staff through our PEO and Employer of Records service, there are no termination fees to be paid as long as the client adheres to the 60 day termination-notice period.
#1 - Fast Facts For Hiring in Hong Kong
Communicate in a Proper Manner
It is common for workers in Hong Kong to adopt an English nickname, but others prefer to be called by their native name. Always be sure to find out what your prospective employee would like to be called.
Attention To Detail is Key
Business operations often move fast in Hong Kong. It is essential to pay close attention to contract details and make sure that everything is fully compliant to local reglulations and cultural norms.
Call People By Their Official Titles
Similar to the practice used in mainland China, it is considered to be a sign of respect to address business partners and prospective employees by their official title and preferred name.
#2 - Working Hours in Hong Kong
#3 - Hong Kong Employment Contracts
Employment contracts in Hong Kong must clearly state the employees’ responsibilities, compensation details, benefits, grievance procedures, and requirements for termination. All offer letters, compensation details, and any document where employee income is discussed should be stated in Hong Kong Dollars.
GlobalPEO includes all these services along with everything else in the jurisdiction of international expansion in Hong Kong through our Employer of Record service.
#4 - Hong Kong Holidays
There are 12 nationally celebrated holidays in Hong Kong. They include January 1st, Lunar New Year’s Day, Lunar New Year’s Day (3 days), Ching Ming Festival, Labor Day, Tuen Ng Festival, Hong Kong Special Administrative Region Establishment Day, the day after the Chinese Mid-Autumn Festival, the Chung Yeung Festival, National Day, and Christmas Day/Chinese Winter Solstice Festival.
Some employers offer an additional 5 holidays, depending on the cultural norms of the individual region or religious background. These additional holidays are: Good Friday, the day after Good Friday, Easter Monday, Buddha’s Birthday, and the day after Christmas Day.
#5 - Bonus Payments in Hong Kong
#6 - Health Insurance & Employment Benefits
Hong Kong Residents have full access to the public health care system, which is known for providing fantastic coverage at a low rate. It is common for employers to provide supplemental health and life insurance to make up for the long waiting periods often experienced through the free health care system.
We suggest budgeting 20% – 25% for benefits in addition to paying the employee’s gross salary.
If you wish to provide supplementary medical and dental insurance to your employees working in Hong Kong, you have the option of doing so through GlobalPEO’s Employer of Record entity located in-country. .
#7 - Sick Leave in Hong Kong
Employees working in Hong Kong are allowed to take sick leave if they miss more than four consecutive working days and can submit an official certificate from a doctor.
The payment rate for sick pay is equal to 4/5ths of the employee’s average daily wages over the preceding 12 months. Employees have the ability to accumulate two additional sick days per month during their first year, and four days each month in the following years of employment. Hong Kong places a cap on the number of paid sick days an employee can accumulate, which is currently limited to 120 days total.
#8 - Maternity Leave in Hong Kong
Hong Kong requires employers to grant female employees 10 weeks of paid maternity leave if they meet the following requirements:
The employee must have been with the company for more than 40 weeks before the expected date of delivery, has submitted a medical certificate of her pregnancy, and has given appropriate notice of her timeline for taking maternity leave. Employees not meeting this criteria are allowed to take up to 10 weeks of maternity leave without pay.
The payment rate for maternity pay is equal to 4/5ths of the employee’s average daily wages over the preceding 12 months.
Fathers are guaranteed 3 days of paternity leave with pay as long as they provide official documentation of their relationship to the mother and expected child.
#9 - Termination & Severance in Hong Kong
Generally, both employers and employees are expected to provide 1 month’s notice for impending termination or resignation. During a probationary period, there is no required notice that must be given from either side within the first month. In the subsequent months following the initial month of probation, a 7 day notice period is mandatory.
Employees can become eligible to receive a severance payment if they have been with the company for 2 to 5 years and their contract was terminated due to redundancy, layoffs, or a fixed-term contract not being renewed in cases of redundancy. Severance payments are comprised of two-thirds of the employee’s average monthly salary for every year they have worked for the company. Severance packages have a maximum payment limit of HK $390,000. If necessary, employers have the ability to offset these costs by contributing to the employee’s pension fund instead of directly paying money out to the terminated worker.
#10 - Hong Kong's Tax Laws
The majority of employers and employees operating in Hong Kong are legally required to contribute monthly to the employee’s Mandatory Provident Fund (MPF). The Hong Kong government requires a minimum contribution of 5%, with additional supplementary benefits being negotiated as employee benefits during the initial employment contract agreement.
GlobalPEO has an in-country entity in Hong Kong with experts there to help you ensure full compliance with country regulations and assist with any additional payroll or recruiting services you may require.
Why Choose GlobalPEO?
Global expansion is a great step for your business – and now it’s easier than ever. Setting up your own entity in each country where you wish to operate can be expensive, complicated, and requires deep knowledge of the specific rules and regulations. Let GlobalPEO take care of everything. From International PEO & EOR, Global Payroll and International Recruiting we deliver our exceptional services at an affordable price.