Employer Of Record&PEO Hong Kong - Expand Without an Entity
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PEO in Hong Kong

Hire Globally, Pay Locally, Expand Effortlessly

INS Global is your ideal local partner for human resources services in Hong Kong. Our PEO solutions can help you get your company started and hire staff in more than 80 countries. Avoid all the extra costs and red tape that usually comes with setting up in a new country by using our human resources solution.  

A PEO (Professional Employer Organization) is a company that serves as a local partner for companies who want to get set up in a new country.  A PEO will legally employ the staff on your behalf, meaning you don’t have to set up your own entity in the country.  

A PEO (Professional Employer Organization), often called a global EOR (Employer of Record) can provide companies with a cost-effective, quick, and simplified global mobility and expansion strategy by taking care of essential HR services and offering compliance assurance in unfamiliar markets. INS Global’s PEO in Hong Kong allows companies to hire or transfer employees within 48 hours.

An Employer of Record (EOR) in Hong Kong provides companies with a cost-efficient and secure way to follow global expansion strategies by acting as the employer for oversees workers to simplify tax and compliance assurance responsibilities. For companies looking to boost their global mobility potential, INS Global’s EOR provides the perfect mix of experience and expertise in the international market.

By choosing INS Global as PEO in Hong Kong, and we can help you hire your staff, manage employee services, and act as your employee payroll organizers.   

Want to have a Team in Hong Kong TODAY?

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Want to have a Team in Hong Kong TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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PEO in Hong Kong - Summary

Why use a PEO in Hong Kong instead of Company Incorporation

If youre not familiar with the process of incorporating a company in Hong Kong, it may be a complicated process that could end up costing your company time and money. A PEO offers you the same benefits as your own entity would, without going through the process of incorporation. 

How are they different?: 

  1. Having your own entity is high risk compared to using an employment solution
  2. An employment solution can save you time and money by reducing setup time
  3. Using a PEO gives you access to local expertise and local networks 
Hiring an Overseas Employee

Advantages of using a Hong Kong PEO

Compliance with Hong Kong Regulations 

Company setup and employment laws are constantly changing. To ensure you do not expose your company to any legal liability by not complying with local laws, you need to understand local regulations and processes. Not staying compliant could mean your company is liable for fines or more serious consequences. A PEO can help you navigate the local regulations with their expert knowledge on how things work

Reduced Cost And Time

By using an outsourced PEO, the initial or anticipated time for setup is significantly reduced. This allows your company to enter Hong Kong and start operations faster. It also means you save on setup costs and the possible further cost of any delays.  

Greater Focus on Company Growth 

Through providing a full suite of services like outsourced payroll management, recruitment and other HR services, you can focus more on growing your business in Hong Kong and worry less about administration.

Accurate Payroll Management

An important benefit of a PEO in Hong Kong is that they can track and manage the payroll of your employees. The PEO can track hours, report wages, handle taxes and social security, pay employees, and in some instances, make payments to vendors all on your behalf.  

How Does a PEO&Employer of Record in Hong Kong Work?

INS Global’s Hong Kong PEO can help you manage the needs of your project and enter the market faster by taking the following steps: 

  • Discuss the scope of your project, your requirements and develop a plan that best serves your needs.
  • Our organization will then provide you with a legal entity, through which you can employ your staff and begin business operations. 
  • Our organization will then assume the administrative and legal aspects of hiring and paying your employees based in Hong Kong.
  • Your staff will carry out daily operations and work towards your business goals in the local market. At the same time, we manage the human resource aspects. 

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

What’s The Difference Between PEO And Employer of Record (EOR)?

Many people may think a PEO and an EOR are the same thing, but there are some differences between the two. An EOR has similar functions to a PEO, because it offers onboarding of local employees, management of employment contracts, payroll processing and management, and tax registration. The difference comes down to the name and the functions. An Employer of Record (EOR) has all of those functions previously mentioned, while a Professional Employment Organization refers to an organization that offers and more. A Global PEO can also offer EOR services, recruitment, payrolling, and tax management services.

  • Payment calculation and processing
  • Arranging payslips
  • Tax calculation and management
  • Withholding social security contributions
  • Regulatory Compliance Assurance

Labor law in Hong Kong 

Employment Contracts In Hong Kong

Employment contracts can be oral or written, however, a written contract is preferred as it will be easier to prevent any legal disputes that may come up in the future. The contract must also outline if it is a fixedterm contract or parttime contract.

Employers must provide employees with information regarding wages, notice periods, and any additional changes to the conditions of the contract.  

The requirements for terminating employees in Hong Kong are not as strict and complex as it they can be in other places. However, employers must still follow the rules for terminating an employee, or they may be subject to penalization. The rules for termination are specified in the Employment Ordinance (the law that contains the rules that govern the relationship between employers and employees).  

Employers that decide to terminate employees should make sure of the notice period required before they inform the employee of the termination. The employer may be required to make a severance or compensation payment in lieu of notice. 

An employer does not have to provide notice or severance pay if an employee is terminated for specific reasons like misconduct, the employee acts in contravention of the law, the employee commits fraud, or the employee has carried out his duties negligently.  

An employer can also terminate an employee during their probationary period. If it is within the first month of probation, the employer does not need to provide notice. If it is after the first month, the employer must give the employee at least 7 days notice or they should make a payment in lieu of notice.  

Working hours in Hong Kong 

There is no set standard of working hours set out in Hong Kong law. However, there are clear rules which define the requirements for rest days and protection of wages.  

Hong Kong policy lets employers and employees decide a lot of how the employment relationship will work. Most companies follow the market average for deciding such terms.  

With overtime, there are no specific requirements set regarding the time period and payment. However, if an employment contract states that extra wages must be paid for overtime, then an employer is obliged to make payment or may be penalized.  

Holidays in Hong Kong 

In Hong Kong law, employees are entitled to 12 statutory holidays every calendar year. The length of time of an employees service cannot make this period any less. Payment cannot be made in lieu of holiday days. 

For payment during holidays, an employee is entitled to an additional day of regular payment (based on the daily average over a year), however they must have been working for more than 3 months with the employer to be entitled to this.  

If an employee is required to work on a statutory holiday, the employer must provide an alternative day of rest within either 60 days before or 60 days after the statutory holiday. The employee must also be given at least 48 hours notice.   

For annual leave, only employees who have been under a continuous contract for more than 12 months, are entitled to such leave. The employee must take annual leave within the following 12 months. The minimum annual leave after a period of 1 year is 7 days, which gets extended by another day for each subsequent year of service up to 14 days.  

Sick leave in Hong Kong 

An employee is entitled to sick leave if they are under a continuous contract, if the employee has accumulated sick days, and if they can provide an appropriate medical certificate to support the leave. 

Paid sick leave is divided into 2 categories – paid sick days can accumulate up to 36 days (category 1) and 84 days (category 2). For category 1, a medical practitioner should issue a medical certificate. If 36 days have been exceeded, then a medical certificate is required, as well as proof the employee was an outpatient, combined with a short record of the treatment provided by the medical practitioner.  

Maternity and Paternity leave Hong Kong 

Female employees under a continuous contract in Hong Kong are eligible for maternity leave, as long as the employment contract started before the commencement of maternity leave. 

Hong Kong law guarantees the female employee 14 weeks of maternity leave.  

Women in Hong Kong are entitled to four-fifths of their average daily wage earned in the previous 12 months. The employee must give advanced notice to the employer to be eligible to receive payment. This is to be paid by the employer, though the employer may be able to apply for reimbursement from the government for the 11th to 14th weeks.

Male employees are entitled to 3 days of paternity leave, specifically for the delivery of the baby. The only requirements are that the employee must be the father, he must be employed under a continuous contract, and he must give enough notice to the employer.

Tax Law in Hong Kong

Hong Kong has favorable tax rates, which is why many international companies have their Asia headquarters there.  

 Hong Kong has 2 modes of tax calculation, the standard tax rate, and the progressive tax rate. The annual taxes of an employee are calculated according to these 2 rates and the employee pays the lesser of the 2 amounts.   

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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