Are there any legal issues about human resource management that I have to be aware of when running my own business?

As an employer, there are a number of legal issues that you should be aware of. Here are some examples.

Vicarious Liability

Employers might be vicariously liable for the negligence of their employees during the course of employment, even when the employer has done nothing wrong. It is worth noting that the negligence committed by individual contractors does not count.

Employers and human resources professionals should set clear guidelines on how the high-risk work to be delivered. Substantial supervision should also be provided to ensure a safe system at work.

Labour law

As an employer, you have certain responsibilities and duties to your employees, as stated in the case law and the statutes in Hong Kong. For example, rest days, holidays, wage protection and severance payment are clearly stated in the Employment Ordinance. These rights are granted to employees even when they are not stated in the contract. Therefore, you are suggested to read through the Employment Ordinance and the Minimum Wage Ordinance to understand your obligations as an employer.

Work safety

Employers have a duty to take reasonable care of their employees. This duty is not limited to death or injuries but also to industrial illness or disease. The duty is personal and non-delegable. You also have to take positive steps to protect the employees, for instance, providing a medical check and safety gear for employees. Employers must provide a safe working environment to their employees with consistent supervision. You might visit the Occupational Safety and Health Ordinance for the requirements of protecting the health and safety of the employees. Employers are also required to take out insurance policies that cover their potential liabilities for their employees under the Employee Compensation Ordinance.

MPF Policy

It is mandatory for employers and employees to make contributions to Mandatory Provident Fund (MPF). You may refer to What is the Mandatory Provident Fund (MPF)? Do I, as an employer, need to make an MPF contribution? for more information about MPF.

Key Takeaways

• Employers may be vicariously liable for their employees’ behaviours. Adequate supervision and guidelines should be provided.
• Employers have to provide a safe working environment for their employees. They are also required to take positive steps to protect their employees, such as providing safety gears.
• Employers are obligated to comply with the labour law, such as Employment Ordinance and Minimum Wage Ordinance.

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