|GH 2017 Hong Kong|
In Hong Kong, the Employment Ordinance (“EO”) is only applicable to employers and their employees that are engaged under employment contracts. In other words, only employers and employees are entitled to rights and benefits under the EO and not persons that are engaged as independent contractors. Consequentially, care must be taken to ensure that any staffing arrangement’s legal implications are consistent with those that are intended by the parties to prevent disputes. This article provides an outline of the employment law in Hong Kong, and the associated consequences in the event of a re-characterization of relationship. It will identify the factors that are likely to indicate the existence of an employment relationship, and will discuss the appropriate method of structuring independent contracting arrangements.