Engagement Letter: Developing a Comprehensive HK Employee Handbook
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Engagement Letter: Developing a Comprehensive HK Employee Handbook
Developing a comprehensive employee handbook in Hong Kong requires careful attention to the Employment Ordinance (Cap. 57) and specific local customs regarding benefits and data privacy.
Below is a professional sample engagement letter tailored for Bestar HR consultancy assisting a client with this project.
Sample Engagement Letter: HK Employee Handbook Development
[Bestar Consulting Limited Letterhead]
Date: January 17, 2026
[Client Name]
[Client Address]
Attn: [Contact Person Name]
Re: Engagement for Professional Services – HK Employee Handbook Development
Dear [Name],
This letter confirms the terms upon which Bestar Consulting Limited (“we”) will provide professional services to [Client Name] (“you”) regarding the creation of a comprehensive Employee Handbook compliant with the laws of the Hong Kong SAR.
1. Scope of Services
We will research, draft, and finalize a comprehensive Employee Handbook. The final deliverable will include, but is not limited to, the following standard Hong Kong compliance sections:
Introduction: Mission/Values, Equality & Diversity, and PDPO Data Privacy compliance.
Working Arrangements: Attendance, Overtime, and Extreme Weather (Typhoon/Rainstorm) protocols.
Remuneration: Wage payment cycles, MPF contributions, and Bonus/13th-month pay structures.
Leave & Holidays: Statutory/Public Holidays, Annual Leave, Paid Sickness Days, and Parental Leave (Maternity/Paternity).
Conduct & Ethics: ICAC-aligned Anti-Bribery policies, Conflicts of Interest, and IT/Social Media usage.
Safety & Insurance: Employees’ Compensation Insurance and workplace health/safety.
Performance & Exit: Grievance procedures, Disciplinary frameworks, and Termination/Notice periods.
For a detailed breakdown of the specific policies, procedures, and sections to be included in the deliverable, please see the "Table of Contents for the Handbook" in the attachment provided with this letter.
2. Project Phases & Timeline
We propose to complete this project within 6 weeks following the schedule below:
Phase | Description | Estimated Completion |
I. Discovery | Reviewing existing contracts and internal practices. | Week 1-2 |
II. First Draft | Delivery of the initial draft based on the TOC above. | Week 4 |
III. Revision | Incorporating feedback and legal finalization. | Week 6 |
3. Client Responsibilities
To ensure the handbook reflects your company culture, you agree to:
Provide copies of existing employment contract templates.
Designate a primary point of contact for timely feedback.
Disclose any specific industry-related requirements or existing internal benefits.
4. Professional Fees
The fee for this engagement is a fixed sum of HKD [Amount], payable as follows:
50% Deposit: Due upon signing this letter.
50% Final Payment: Due upon delivery of the final handbook.
5. Confidentiality & Governing Law
Both parties agree to keep all proprietary business information and personal data strictly confidential. This agreement shall be governed by and construed in accordance with the laws of Hong Kong SAR.
Acceptance
If these terms are acceptable, please sign and return the enclosed copy of this letter.
For Bestar Consulting Limited:
(Signature) ______________________
[Name/CEO]
For [Client Name]:
(Signature) ______________________
[Name/Title]
Here is the Attachment formatted as a standalone document. You can print this or include it as a second page to your engagement letter to ensure the client understands the full depth of the project.
ATTACHMENT: PROPOSED TABLE OF CONTENTS
Project: Comprehensive HK Employee Handbook Development
Section 1: Employment Framework
1.1 Welcome & Company Introduction
1.2 Statement of Equal Opportunity: Compliance with Sex, Disability, Family Status, and Race Discrimination Ordinances.
1.3 Personal Data Privacy Policy: Handling of employee data under the PDPO.
1.4 Amendment of Terms: Procedures for updating the handbook.
Section 2: Operational Policies
2.1 Office Hours & Attendance: Core hours and punctuality.
2.2 Overtime & Compensatory Leave: Eligibility and approval process.
2.3 Remote & Hybrid Work: Guidelines and equipment usage (if applicable).
2.4 Extreme Weather Arrangements: Mandatory protocols for Typhoon Signal No. 8+ and Black Rainstorm Warnings per Labor Department codes.
Section 3: Remuneration & Benefits
3.1 Wage Payment & Records: Payment cycles and itemized pay slips.
3.2 Mandatory Provident Fund (MPF): Enrollment and contribution rates.
3.3 Annual Bonus / 13th Month Pay: Defining discretionary vs. contractual nature.
3.4 Expenses & Reimbursements: Claims procedure.
Section 4: Leave Entitlements (Statutory & Contractual)
4.1 Statutory & Public Holidays: Scheduling and "alternative holiday" rules.
4.2 Paid Annual Leave: Entitlement based on years of service and carry-forward rules.
4.3 Sickness Allowance: Requirements for Medical Certificates and "Paid Sickness Day" accumulation.
4.4 Parental Leave: Statutory Maternity and Paternity Leave provisions.
4.5 Special Leave: Marriage, Compassionate, and Jury Service leave.
Section 5: Standards of Conduct
5.1 Code of Ethics: Professional standards and representation.
5.2 Anti-Bribery & Corruption: Compliance with the Prevention of Bribery Ordinance (ICAC standards).
5.3 Conflict of Interest: Disclosure requirements for outside employment.
5.4 IT & Confidentiality: Proper use of company systems and protection of trade secrets.
Section 6: Health, Safety & Environment
6.1 Workplace Health & Safety: General precautions and emergency exits.
6.2 Employees’ Compensation Insurance: Reporting workplace accidents/injuries.
6.3 Smoke-Free Workplace: Compliance with HK tobacco control laws.
Section 7: Employee Relations & Exit
7.1 Performance Management: Appraisal cycles and feedback loops.
7.2 Grievance Handling: Formal process for raising workplace concerns.
7.3 Disciplinary Framework: Verbal/Written warnings and Summary Dismissal grounds.
7.4 Resignation & Termination: Notice periods and "Payment in Lieu of Notice" calculation.
7.5 Return of Company Property: Exit checklist requirements.
Key Legal Reminder for HK
Under the Employment Ordinance, any provision in an employment contract (or handbook) that purports to extinguish or reduce any right, benefit, or protection conferred upon the employee by the Ordinance shall be void. We must ensure the handbook never dips below the statutory minimums.
Key Considerations for HK Handbooks
When we begin the drafting process, we should pay particular attention to these "HK-specific" areas:
Rest Days vs. Statutory Holidays: Clarifying how your company handles the "alternative holiday" rules if an employee works on a public holiday.
13th Month Payments: Specifying if the "Annual Bonus" or "Double Pay" is contractual or discretionary.
Paternity/Maternity Leave: Ensuring the 2026 statutory requirements for paid leave are accurately reflected.
Initial Information Request List
This document is designed to be sent to your client as soon as the engagement letter is signed. It helps you gather all the necessary "raw material" to ensure the handbook is legally accurate and reflects their actual business practices.
INITIAL INFORMATION REQUEST LIST
Project: Development of HK Employee Handbook
Date: January 17, 2026
To begin the drafting process, please provide the following documents and information. You may provide these via [Insert Platform, e.g., Secure Email / Dropbox / Client Portal].
1. Core Employment Documents
[ ] Template Employment Contracts: Copies of current contracts for different levels (e.g., Permanent, Part-time, Executive).
[ ] Existing Policies: Any current memos, offer letters, or "unwritten" rules currently in use regarding office conduct.
[ ] Company Logo & Brand Guidelines: To ensure the handbook's visual alignment with your corporate identity.
2. Compensation & Hours
[ ] Standard Working Hours: Please confirm the official start/finish times and lunch break duration.
[ ] Overtime Policy: Do you currently offer overtime pay or "Time Off in Lieu" (TOIL)?
[ ] Bonus Structure: Do you offer a "13th Month" payment or a discretionary performance bonus?
[ ] Probationary Period: What is your standard probation length (e.g., 3 months)?
3. Leave & Benefits
[ ] Annual Leave Entitlement: What is the starting number of days for new hires (e.g., 12, 14, 21 days)?
[ ] Medical Benefits: Details of any private medical insurance, dental plans, or executive health check-up schemes.
[ ] Additional Leave: Does the company offer Marriage, Compassionate, or Study leave beyond statutory requirements?
4. Operational Specifics
[ ] Extreme Weather Policy: Do you have a specific "Work from Home" arrangement during Typhoon Signal No. 8 or Black Rainstorm warnings?
[ ] IT/Equipment: List of company-provided assets (Laptops, Mobiles, VPNs) that require usage policies.
[ ] Organisational Chart: To understand the reporting lines for grievance and disciplinary procedures.
5. Legal & Compliance
[ ] MPF Scheme Provider: Name of your current MPF trustee.
[ ] Insurance Provider: Details of your Employees' Compensation (EC) Insurance policy.
[ ] Data Privacy: Any existing Personal Information Collection Statement (PICS) provided to employees during recruitment.
Next Steps
Once these documents are received, we will schedule the Phase I: Discovery Call to discuss any gaps or specific cultural nuances you wish to highlight.
Is Your HK Employee Handbook 100% Compliant for 2026?
Don't leave your business vulnerable to the Labor Department. Bestar provides ironclad, legally-vetted handbooks tailored to the HK Employment Ordinance, updated for latest 2026 regulations.
About Bestar
Engagement Letter: Developing a Comprehensive HK Employee Handbook
Why Hong Kong Businesses Trust Bestar
Your Local Partner in HR Excellence and Compliance
At Bestar Hong Kong HR Consulting, we bridge the gap between complex statutory requirements and seamless business operations. With decades of collective experience in the Hong Kong SAR labor market, we specialize in helping SMEs and multinational corporations navigate the unique legal landscape of the Employment Ordinance (Cap. 57).
What Sets Bestar Apart:
100% Local Specialization: We aren't a generic global firm. We are Hong Kong specialists. From the nuances of MPF contributions to the complexities of Statutory Holiday transitions, we ensure your business remains ahead of the curve.
Compliance-First Methodology: In 2026, regulatory scrutiny is higher than ever. Our "Audit-Proof" approach to drafting Employee Handbooks and employment contracts minimizes your legal risk and protects your reputation.
Bilingual & Culturally Aware: We understand that the HK workplace is a melting pot. Our policies are designed to be clear, professional, and culturally appropriate in both English and Traditional Chinese.
Agile Support: Whether you are a startup hiring your first employee or an established firm restructuring your benefits, Bestar provides the scalability and speed you need to stay competitive.
Our Mission: To empower Hong Kong employers with the tools to build fair, productive, and legally sound workplaces. When you partner with Bestar, you aren't just buying a document—you’re securing your company's future.
How We Work:
Consultation: We identify your specific industry risks and company culture.
Compliance Audit: A deep dive into your current contracts against 2026 HK laws.
Custom Drafting: Our experts craft your bespoke Employee Handbook and HR policies.
Final Implementation: We help you roll out the new standards to your team smoothly.
Bestar Hong Kong HR Consultancy: Expert Employee Handbook drafting, payroll outsourcing, and HK Employment Ordinance compliance. Secure your business with 2026-ready HR solutions. Book your free consultation today.
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