Hong Kong Prepares for a Minimum Wage

Originally published 6 July 2010

Keywords: trade unions, minimum wage, contract of employment, Employment Ordinance (Payment of Wages),

The trade unions have finally won their decades-long battle to introduce minimum wage legislation to Hong Kong. Ignoring for a second the debate of whether a minimum wage is good or bad for Hong Kong and whether such legislation creates or reduces poverty, the one thing we know for sure is that it will impose obligations on employers. This paper outlines those obligations and highlights potential pitfalls.

In considering this paper, the reader should note that the legislation is not yet finalised and, indeed, the wording for certain provisions has not even been presented to the legislature. As such, there are areas (e.g. the meaning of "student intern" and the treatment of commissions) where the position remains slightly uncertain.