TL;DR

Hong Kong’s Employment Ordinance protects the basic rights of most employees, including: can dismiss immediately without notice in the first month of probation, minimum 7 days paid annual leave (increasing year by year to 14 days), paid sickness leave (accrued, 4/5 of wages per day), 14 weeks’ maternity leave, 5 days’ paternity leave, severance payment/long service payment (available only after 2 years of service). The 2026 minimum wage is HK$40 per hour (effective from May 2025). Employees on a “continuous contract” (working 18 hours or more per week, commonly known as “418”) enjoy full protection. This article breaks it all down.

1. Probation Rights

1.1 Notice Period During Probation

  • First month of probation: No notice required; immediate dismissal/resignation permitted
  • Second to third month of probation (with a defined probation period): 7 days’ notice (or payment in lieu of notice)
  • After probation / no defined probation period: As specified in the contract (minimum 7 days)

Note: Even during the first month of probation, the employer must still pay you for the work you have done and any holiday pay. An employer may not withhold wages on the grounds that “you were not suitable during probation”.

1.2 Annual Leave During Probation

Paid annual leave accrues during the probation period, but you may only take it after probation has ended (unless the employer agrees).

1.3 Dismissal During Probation

An employer may dismiss an employee during probation on the grounds of “performance not meeting requirements” without providing detailed reasons, but this must not involve discrimination (on grounds of sex, disability, family status, race, etc.).

2. Paid Annual Leave

  • 1 year: 7 days
  • 2 years: 7 days
  • 3 years: 8 days
  • 4 years: 9 days
  • 5 years: 10 days
  • 6 years: 11 days
  • 7 years: 12 days
  • 8 years: 13 days
  • 9 years or more: 14 days

Most companies offer more annual leave than the statutory minimum (especially foreign-owned or professional services firms, which typically start at 15–20 days).

3. Sickness Leave

3.1 Eligibility for Paid Sickness Leave

  • Have accrued sufficient sickness leave days (accruing 2 days per month in the first year, then 4 days per month thereafter, up to a maximum accumulation of 120 days)
  • Sickness leave taken for 4 consecutive days or more
  • A medical certificate is provided

3.2 Sickness Leave Allowance

Daily sickness leave allowance = 4/5 (80%) of the average daily wage over the past 12 months.

Example: Monthly salary HK$30,000; average daily wage over the past 12 months = HK$30,000 ÷ 30 = HK$1,000. Sickness leave allowance = HK$1,000 × 4/5 = HK$800/day.

Sickness leave of fewer than 4 days: The employer has no legal obligation to pay sickness leave allowance (though many companies offer more generous internal benefits).

4. Maternity / Paternity Leave

4.1 Maternity Leave

  • Statutory: 14 weeks’ paid maternity leave
  • Eligibility: Continuous employment for 40 weeks (about 9 months)
  • Pay: 4/5 of average wages, capped at HK$80,000 per employee
  • Additional: May be extended further in cases of pregnancy-related illness

4.2 Paternity Leave

  • Statutory: 5 days’ paid paternity leave
  • Pay: 4/5 of average wages
  • Must be taken within the specified period before or after the birth of the child

5. Severance Payment / Long Service Payment

5.1 Eligibility

  • Continuous employment for 24 months (2 years)
  • Being made redundant (severance payment) or leaving upon contract expiry / on grounds of health (long service payment)

5.2 Calculation Method

Monthly-paid employees:

Severance payment = monthly salary × 2/3 × years of service (capped at HK$390,000)

Example: Monthly salary HK$30,000, dismissed after 8 years of service:

Severance payment = HK$30,000 × 2/3 × 8 = HK$160,000 (below the cap)

5.3 Relationship Between Severance Payment / Long Service Payment and the MPF

An employer may use the “accrued employer contribution portion” in your Mandatory Provident Fund (MPF) account to offset severance payment/long service payment. In other words, the severance payment you receive will be reduced by the employer’s MPF contributions already made.

The “ring-fencing” arrangement from May 2025: New employees joining on or after 1 May 2025 can no longer have severance/long service payments offset by MPF. Existing employees may still be subject to offsetting.

6. Minimum Wage

From 1 May 2025: HK$40 per hour (up from HK$37.5)

Scope of Application

  • All employees (regardless of monthly, hourly or daily pay)
  • Excluded: live-in domestic helpers, student interns (under specified arrangements)

Calculation Method

Even if you are on a monthly salary, the minimum wage still applies:

Monthly salary ÷ total hours worked in that month ≥ HK$40

If this is not met, the employer must make up the shortfall.

7. FAQ

Q1: Can a company force me to sign a “voluntary waiver of annual leave” declaration?

A1: No. Statutory annual leave cannot be waived. Any contractual term that falls below the statutory standard is void.

Q2: What compensation is payable if I am dismissed summarily (sacked)?

A2: It depends on the reason. If it is a summary dismissal (you committed serious misconduct), the employer need not pay payment in lieu of notice or severance payment. If it is an ordinary dismissal but the employer does not wish to wait out the notice period, payment in lieu of notice (equal to the pay for the notice period) must be made.

The information in this article is current as of May 2026. Statutory provisions are subject to the latest version issued by the Labour Department and the Employment Ordinance.