Employment Services in Hong Kong
INS offers an Employer of Record solution in Hong Kong. We collaborate with foreign businesses with or without Hong Kong based companies in order to employ their staff on-site via our employment organization, simplifying hiring and termination procedures, payroll and tax compliance, as well as all local benefits and expenses administration.
Onboarding a Professional
Hong Kong Employee’s Labor Contract
Besides advising on how to structure a payroll structure for Hong Kong based employees, we further help our clients to navigate through complicated negotiations regarding their local staff contracts, and handle administrative work procedures including possible contract renewals or termination. All rules and regulations will be followed according to the Hong Kong Labor Law.
MANDATORY PROVIDENT FUND
Key Aspects of a Labor Negotiation
Our team of experts’ can give advice on a case-to-case basis concerning all legal concerns: hiring issues and requirements, termination procedure and severance pay, confidentiality agreement, intellectual property clauses, etc. Furthermore, our HR Team will keep you updated on any changing Hong Kong labor policy or taxation laws at all times.
► Start Date & Duration
► Probationary Period
► Payroll & Other Benefit
► Leave Days
► Sick Leave
► Annual Holidays
► Notice Period
► Severance Pay
► Intellectual Property
► Non-Competitive Agreements
Contract Registration & Income Tax Declaration
A locally compliant employment contract will be formed and registered with the professional chosen by the client, by the guidelines provided by the employer of record and in best practice and compliance with local labor laws.
About Hong Kong’s Taxation: the Mandatory Provident Fund (MPF)
In Hong Kong, MPF contributions are calculated and deducted from the employee’s revenue. MPF compliance and registration is completed by the employer of record, and any additional costs incurred will be notified: bonus, commissions, 13th-month salary, etc.
Immigration Procedures for Expatriates
The procedure to obtain the Work and Residence Permit in Hong Kong is complex and time-consuming; in addition to the proceedings pertaining to Mainland China-based workers, all foreign workers in Hong Kong must justify that his/her position is not being taken from a native worker. Applicants must have a degree or specific qualifications recognized by the Hong Kongese authorities. The whole process can take from 4 to 6 weeks once the application is submitted.
Employment Post-Contract Options
CONTRACT RENEWAL & NEGOTIATION
In the case of a contract extension, INS will guide its clients through all necessary steps and furthermore will adjust new contracts to possible changes in laws or regulations that may have occurred (number of renewals allowed, seniority benefits calculations, etc.).
It is strongly advised to have support in case of conflicts regarding the termination of contracts. In case termination issues in connection with severance pay occur, INS will guide its clients transparently throughout the process.
Payroll & HR Management
Following the onboarding of a dispatched employee, all necessary procedures are managed on a monthly basis. By outsourcing payroll and HR Management via our employer of record in Hong Kong, clients are given the opportunity to focus their time on their core business activities. While being in control of the full HR management of their staff, foreign companies can focus their internal discussions toward business-related matters – leaving aside HR concerns.
Having established a large and reliable network, an unlimited number of employees can be sponsored, giving our clients the opportunity to adjust their team at any point given the current need and demand. By sending a dispatched employee to HK via INS, the following services are entirely taken care of:
Payroll data collection from the Client, including bonuses, commissions, and other information, at the end of each month
- Pay slip distribution to Professional(s) in accordance with local norms
In addition to helping overcome complex Hong Kong regulations and the resulting administrative burdens, our HR team offers continued support in order to minimize vulnerability to risks related to the fast-changing tax and labor laws. This includes:
Withholding tax statement preparations which are dependent on both the salary structure and the working location in Hong Kong
Income tax report generation and distribution to the Professional(s) and the relevant government authorities, only if required
Insight into regulatory changes such as maximum taxation amounts and rates, requiring updated budget plans
HR Expertise for Business Efficiency
Compatibility with a Hong Kong Registered Company
Once an ongoing business activity is stabilized and requires further development (company creation), INS can register a Hong Kong company on your behalf.
The use of employment solutions enables foreign companies to smoothly transfer their business status and employees to their Hong Kong company.