Notice period

Hong Kong's statutory notice period requires employers and employees to provide 30 days' written notice before terminating an employment contract, as established under the Employment Ordinance (Cap. 57). This rule applies to all employees engaged under a continuous employment contract, regardless of salary level or job classification.

The notice period serves as a mandatory cooling-off mechanism, giving both parties reasonable time to prepare for the employment relationship's end. Either the employer or employee may initiate termination by providing written notice. If notice is not given, the terminating party must pay the other party an amount equivalent to 30 days' wages in lieu of notice. Wages for this calculation are based on the employee's ordinary rate of pay, excluding discretionary bonuses and certain allowances.

The Employment Ordinance, administered by the Labour Department under Hong Kong's government, governs this requirement. The 30-day notice period has remained the statutory standard for many years, with no recent changes to this specific provision.

Employers and payroll teams must ensure that termination letters clearly state the notice period and its effective date. If an employee is terminated without notice, the employer must calculate and pay the notice payment accurately, including it in the final settlement. Conversely, if an employee resigns without providing proper notice, the employer may deduct the equivalent amount from final wages, subject to limits on wage deductions under Hong Kong law. Maintaining clear documentation of notice periods protects both parties and ensures compliance with statutory obligations.