What are the human resources issues you are likely to encounter in Hong Kong?
Any employee on an assignment in Hong Kong, irrespective of their country, is subject to the Hong Kong termination laws. Taking, for instance, the notice period for termination can either be on as defined by the contract of the hiring team but shouldn’t be less than 7 days. However, if the contract does not specify that, then the period for notice is a minimum of one month. The severance payment is only required if the employment exceeds two years, and the termination is involuntary.
The sick leave pay in Hong Kong is generous and may take up to 24 days in the first year and 48 days in the second year after the two parties sign the employment contract. The unused sick leave can be up to a maximum of 120 days. The payment for sick leave is deducted by 20% of the total daily salary.
Work Permits and Visas
If you are an employer who is planning on hiring a non-Hong Kong worker, then you should know that all assignees to Hong Kong will require a work permit. Besides, the process of obtaining the work permit will take from four to eight weeks for one to get the final work visa. The other vital point to note is that only legally married spouses can accompany an employee with a work permit to Hong Kong. However, life partners cannot qualify to accompany the assignee.
The Hong Kong taxation law does not work on the PAYE system, but the employee is expected to calculate their taxes annually and remit them. The amounts are not withheld directly from the employees’ paycheck.