Employee Handbook

Employee Handbook | Bestar

Hong Kong Employee Handbook Essentials

While there's no legal requirement for a written employee handbook in Hong Kong, it's highly recommended. The Employment Ordinance (Cap. 57) governs the basic rights and obligations of both employers and employees. A comprehensive handbook helps ensure compliance with this and other relevant ordinances while also serving as a clear guide for employees.

Essential Components of a Hong Kong Employee Handbook ✍️

A well-drafted employee handbook for a company in Hong Kong should include policies that align with the Employment Ordinance and other key legislation. The handbook's content should be easily understood by all employees.

Employment Basics

• Employment Contract: Explain that the handbook is not an employment contract but a guide to company policies.

• Probation and Confirmation: Detail the length of the probationary period, typically 3 to 6 months, and the process for confirmation of employment.

• Continuous Contract: Explain the concept of a "continuous contract," which is crucial for determining an employee's eligibility for certain benefits like rest days, paid annual leave, and severance. A continuous contract is established when an employee works for the same employer for at least four weeks with a minimum of 18 hours per week.

• Confidentiality and Data Privacy: Outline the employee's duty to protect confidential company information and how the company handles personal data in accordance with the Personal Data (Privacy) Ordinance.

Compensation and Benefits 💸

This section should clearly define how employees are paid and what benefits they are entitled to.

Wages and Deductions

• Wages and Payment: Detail the wage period and when wages are paid. The Employment Ordinance states that wages must be paid no later than seven days after the end of the wage period.

• Deductions: List the limited, legally permissible reasons for wage deductions, such as deductions for absence from work, damage to property (up to a limit), or contributions to a retirement scheme.

• Mandatory Provident Fund (MPF): Explain the mandatory contributions from both the employer and employee to the MPF scheme for all eligible employees.

Leave and Holidays

• Rest Days: A continuous contract employee is entitled to at least one rest day in every period of seven days. The handbook should specify whether rest days are paid or unpaid.

• Statutory Holidays: List the 14 statutory holidays each year that all employees are entitled to.

• Paid Annual Leave: Detail the entitlement to paid annual leave, which starts at 7 days after 12 months of employment under a continuous contract and increases to a maximum of 14 days based on years of service.

• Sick Leave and Sickness Allowance: Explain the accrual of sickness allowance.

• Maternity and Paternity Leave: Detail the entitlement for female employees to 14 weeks of maternity leave and male employees to 5 days of paternity leave under specific conditions.

Workplace Conduct and Procedures 🚶‍♀️

This part of the handbook outlines the expected behavior of employees and the company's internal procedures.

Disciplinary and Grievance Procedures

• Code of Conduct: Set out the expected professional conduct, including policies on dress code, punctuality, and use of company property.

• Disciplinary Action: Outline the disciplinary process for misconduct, which may range from verbal warnings to summary dismissal for serious offenses.

• Grievance Policy: Provide a clear procedure for employees to raise complaints or grievances.

Termination of Employment

• Notice Period: Specify the notice period required for termination by either the employee or the employer, which is typically outlined in the employment contract.

• Termination Payments: Explain what an employee is entitled to upon termination, including outstanding wages, payment in lieu of annual leave, and severance or long-service payments for eligible employees.

Professional Fees

The professional fees for drafting an employee handbook in Hong Kong can range from a few thousand to tens of thousands of Hong Kong dollars, depending on the complexity of your company.

Pricing by Bestar

Hiring Bestar is a safe cost-effective option, as it ensures the handbook is fully compliant with Hong Kong's Employment Ordinance and other relevant laws. We are experts in human resources management and can create a handbook that is both legally compliant and aligned with your company's culture.

• Fees: Fees for a customized handbook from Bestar HR Consulting can range from HK10,000 to over HK50,000. Bestar charges a flat project fee, while other firms may bill on an hourly rate, which can be HK2,000 to HK5,000 per hour or more, depending on the firm's seniority.

  
  

• Included Services: Bestar will review your company's existing practices, draft policies from scratch, and ensure they are legally sound, protecting your company from potential disputes and legal challenges. Bestar will develop policies on a wide range of topics, including leave entitlements, disciplinary procedures, and performance management, while ensuring the content is practical and easy for employees to understand.

Factors Influencing the Cost

• Customization Level: A handbook built from scratch with tailored clauses for your specific industry (e.g., finance, technology, or food and beverage) will be more expensive than a generic template.

  
  

• Company Size and Structure: Larger companies or those with multiple offices or complex organizational structures will require a more detailed handbook, increasing the cost.

  
  

• Industry and Policies: Industries with specific regulations (e.g., financial services, healthcare) or companies with unique policies (e.g., remote work, intellectual property ownership) will need more in-depth legal and HR consultation.

  
  

• Ongoing Support: The fee for drafting the handbook doesn't include future updates. Bestar offers a separate annual fee to review and update the handbook to reflect changes in labor laws.

How Bestar can Help

Employee Handbook

Hiring Bestar to draft an employee handbook in Hong Kong is a strategic investment that goes beyond simply creating a document. It ensures your business is legally compliant, operates efficiently, and fosters a positive work environment. While it's possible to use templates, the complexities of Hong Kong's labor laws make professional guidance a valuable asset.

Here's how Bestar can help:

1. Ensuring Legal Compliance

Hong Kong's Employment Ordinance is a cornerstone of its labor laws, but it's not the only piece of legislation that affects an employer's obligations. Bestar will ensure your handbook is compliant with all relevant ordinances, including:

• Employment Ordinance (Cap. 57): This is the main piece of legislation covering a wide range of employment matters, including wages, working hours, rest days, holidays, leave entitlements (e.g., paid annual leave, sick leave, maternity and paternity leave), and termination procedures. Bestar will ensure your policies are in line with or exceed the minimum statutory requirements.

  
  

• Mandatory Provident Fund Schemes Ordinance (Cap. 485): Bestar will help you detail your company's MPF obligations and how they apply to employees, ensuring clear communication and compliance with mandatory contributions.

  
  

• Personal Data (Privacy) Ordinance (Cap. 486): Bestar will draft policies on data privacy and confidentiality, ensuring your company's handling of employee data complies with the law.

  
  

• Anti-Discrimination Ordinances: This includes the Sex Discrimination Ordinance, Disability Discrimination Ordinance, Family Status Discrimination Ordinance, and Race Discrimination Ordinance. Bestar will help you create policies that prevent discrimination and harassment, safeguarding your company from potential legal action.

2. Tailoring the Handbook to Your Business

A one-size-fits-all template may not work for your specific business needs. Bestar will help you:

• Reflect Your Company Culture: Beyond legal requirements, a handbook should reflect your company's values and mission. Bestar can help you craft language that fosters a positive culture and sets the right tone from an employee's first day.

  
  

• Address Unique Situations: If your company has specific policies on remote work, intellectual property, or specialized compensation structures (like bonuses), Bestar can draft clauses that clearly define these terms and protect your business interests.

  
  

• Integrate with Existing Policies: Bestar can ensure the handbook aligns with your existing employment contracts and other company policies, creating a cohesive and consistent framework for your employees.

3. Mitigating Legal and Business Risk

A professionally drafted handbook is a powerful risk management tool.

• Clarity on Disciplinary Action: Bestar can help you outline a fair and consistent disciplinary procedure. By clearly stating the consequences for misconduct, the handbook can serve as a legal reference in case of a dispute or termination, protecting the employer from claims of unfair dismissal.

  
  

• Dispute Resolution: The handbook can establish a clear grievance procedure, providing a structured way for employees to raise concerns and for the company to address them before they escalate into a formal dispute.

  
  

• Consistency: When all managers and employees refer to the same document, it ensures consistency in decision-making and policy application across the company.

In essence, a professional helps you turn a simple document into a strategic asset that not only complies with the law but also acts as a clear communication tool, a risk management framework, and a cornerstone of your company's culture.

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