News & Insights

Top 10 questions to ask when you HIRE or FIRE an employee in Hong Kong

Hiring

1. Does the employee have a right to work in Hong Kong or does the employee need a work visa ?

2. Is the employment offer subject to any condition precedent (e.g. satisfactory reference check, obtaining the necessary qualification) ?

3. Is the recruitment screening and decision making process fair and free from challenge of discrimination ?

4. Is the employee free from restrictive covenants to take up the job ?

5. Is the personal data of the candidate/employee collected or dealt with in accordance with Hong Kong law ?

6. Does the employee need to be a member of the mandatory provident fund (MPF) in Hong Kong or is the employee exempt ?

7. Does the remuneration of the employee meet the statutory minimum wage requirement? Are rest days/ lunch breaks paid or not ?

8. Is the employee entitled to all the statutory required benefits granted under Hong Kong law (e.g. employees’ compensation insurance, statutory annual leave, statutory holiday, rest day etc) ?

9. Are mandatory safety training or medical checkup required for the position of the employee ?

10. Have all the legal requirements with respect to occupational safety and health been complied with ?

Firing

1. Does the employer have a valid reason for the termination ?

2. Does the employer have sufficient evidence to terminate the employment of an employee on the alleged ground ?

3. Is the employee pregnant, on maternity leave, on paid sick leave, or receiving employee’s compensation in which case it is unlawful to terminate the employee ?

4. Is the termination free from challenge that one of the grounds of termination was sex, disability, family status or race discrimination ?

5. What termination payments (e.g. outstanding wages, payment in lieu of notice, annual leave pay, severance payment or long service payments) will the employee be entitled to ?

6. Will / can the restrictive covenants be enforced ?

7. Any special treatment required with respect to any unvested share options or other benefits after termination of employment (eg. MPF) ?

8. Will the employer pay an ex-gratia payment in return for the employee entering into settlement agreement in full and final settlement of all claims which the employee has or may have ?

9. Has the requisite notification been made to the Inland Revenue Department informing the authority regarding the relevant termination payments and the final payment withheld where required ?

10. Has the Immigration Department been informed regarding the termination of employment in the circumstances that the employee is under work visa?

Watch out for our coming issues of newsletter for more tips in other jurisdictions !!

Key Contacts

Cynthia Chung

Partner | Corporate Commercial | Employment and Pensions

Email or call +852 2825 9297

Related Services and Sectors:

Employment and Pensions

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