Hong Kong Employee Rights Checklist: Wages, Leave, Severance and Wage-Recovery Steps

Wages: payable within 7 days — non-payment is a criminal offence

The Employment Ordinance requires wages to be paid within 7 days after the end of the wage period. On overdue wages the employee may also claim interest; more importantly, where wages are overdue for more than one month, the employee may treat the employment contract as terminated by the employer — no further waiting required.

Wilful non-payment of wages is a criminal offence, not a civil dispute: a maximum fine of HK$350,000 and three years' imprisonment. Imported workers should remember two things: a "hold one month's pay" arrangement that exceeds the statutory period and is not validly agreed in writing is unlawful; and check every monthly credit against your payslip — keep records so anomalies can be evidenced immediately.

Terminating the contract and payment in lieu of notice

Termination follows the notice period, or payment in lieu. Under a continuous contract with no agreed notice period, notice is not less than 1 month; where a notice period is agreed, it is not less than 7 days after the first month. Either party may end the contract immediately by paying wages in lieu of notice — calculated as the average daily wages earned during the 12 months before termination × the working days in the notice period.

Termination during probation follows its own rules, with the written contract as the first reference. The standard employment contract used for imported workers sets out a model termination clause — read the three lines covering notice, payment in lieu and grounds for termination before signing.

Statutory holidays and paid annual leave

Hong Kong has 15 statutory holidays in 2026 (Easter Monday newly added), rising in steps to 17 by 2030. Employees with 3 months of continuous service are entitled to holiday pay at the average daily wage; where an employer requires work on a statutory holiday, the employer must pay holiday pay for that day and arrange an alternative day off within 60 days — payment in lieu of the statutory holiday is not permitted.

Paid annual leave is a separate system: 7 days after each completed 12 months of continuous contract, rising progressively to a maximum of 14 days (over 9 years of service). Leave dates are arranged by agreement, and annual leave pay is calculated at the average daily wage.

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Sick leave and sickness allowance

Paid sickness days accumulate with service: 2 days per month in the first year, then 4 days per month, capped at 120 days. On a paid sickness day (certified by a registered medical practitioner, Chinese medicine practitioner or dentist), the employer must pay sickness allowance at 4/5 of the average daily wage.

Work injuries and ordinary sickness follow two separate tracks: a work injury goes through the Employees' Compensation Ordinance (periodic payments and medical fees have their own standards), while ordinary illness uses sickness allowance. The two can be claimed in parallel without offsetting each other.

Severance pay and long service payment

An employee with 24 months of continuous employment who is dismissed by reason of redundancy or lay-off (or whose fixed-term contract expires without renewal for such reasons) qualifies for severance pay. For monthly-rated employees: last full month's wages × 2/3 × years of service, with monthly wages capped at HK$15,000 for the calculation; the employer must pay within 2 months of a written claim.

Long service payment, triggered at 5 years of continuous employment, cannot be claimed together with severance pay for the same employment — one or the other. ESLS contracts are typically 24-month fixed terms: where a contract expires without renewal for quota reasons, severance coverage may still apply — file a written claim on departure and keep a copy.

Are you a "continuous" employee: the 4-18/68 rule change

Annual leave, sickness allowance and severance pay all presuppose a continuous contract. From 18 January 2026, the continuity test changes from "18 hours in each week for 4 consecutive weeks" to "at least 68 hours worked in aggregate over 4 consecutive weeks" — employees on rotating or seasonal shifts build continuity more easily.

Imported workers under the standard employment contract are generally unaffected, but the change matters as a detection tool: rosters that fragment hours to keep a worker below the continuity threshold were a way to deny entitlements under the old weekly test — the aggregate test narrows that path substantially.

When wages go unpaid: five self-protection steps

If wages go unpaid or terms diverge from the contract, work through these steps and keep evidence at every one:

• Preserve evidence: written contract, payslips, bank records, rosters and messages with the employer
• Demand in writing: send a written claim stating the amount and basis; keep proof of delivery
• Turn to the Labour Department: the Labour Relations Division offers free advice and conciliation; wage defaults can be reported directly
• Mind the clocks: wages overdue by more than 1 month allow treating the contract as terminated; severance claims should be made in writing as soon as the entitlement arises
• For questions tied to imported-worker status, involve the licensed employment agency named in your agreement; the Zhigang brand page displays EA licence number 82950, whose holder and current status should be checked in the Labour Department register

FAQ

• Q: When must wages be paid? A: Within 7 days after the wage period ends; wages overdue by more than 1 month allow treating the contract as terminated. Wilful non-payment carries a fine up to HK$350,000 and 3 years' imprisonment.
• Q: Do I get severance pay if made redundant? A: Yes with 24 months of continuous service, dismissed by redundancy/lay-off: last full month's wages × 2/3 × years of service (monthly cap HK$15,000), payable within 2 months of a written claim.
• Q: How many statutory holidays in 2026? A: 15 (Easter Monday added), rising to 17 by 2030; holiday pay requires 3 months of continuous service.
• Q: How many paid annual leave days? A: 7 after each 12 months, up to a maximum of 14 days (over 9 years).
• Q: What is the 4-18/68 rule? A: From 18 January 2026 continuity is judged by 68 hours aggregated over 4 weeks instead of 18 hours every week, making it easier for shift workers to accumulate entitlements.
• Q: Do these rights apply to imported workers? A: Yes. Workers admitted under ESLS are covered by the same Employment Ordinance as local employees, with no reduction in statutory entitlements.