No, verbally agreed employment contracts are legally enforceable. But you are strongly advised to have a written employment contract.
Benefits of written contracts
There are multiple benefits of having a signed written employment contract, which includes:
- Specifying explicitly and serves as evidence of the employment terms and conditions;
- Reminding both employers and employees of their contractual obligations;
- Protecting the interests of both parties; and
- Minimising unnecessary labour disputes.
What goes into an employment contract
Per the Employment Ordinance, an employer must include the following in their employment contract:
- Wages (including rate of wages, overtime rate and any allowances, whether calculated by the piece, job, hour, day, week or otherwise);
- Wage period;
- Length of notice required to terminate the contract; and
- End of year payment or proportion of it and the payment period (if applicable).
- Other employment conditions such as working hours, holidays arrangements, etc., should also be clearly specified.
If the contract of employment is in writing, the employer is required to provide a copy of the contract to the employee immediately after it is signed or validated.
A copy of a standard employment contract can be found here.
