Can I hire an intern without pay in Hong Kong

Can I Hire an Intern Without Pay in Hong Kong

No. The Employment Ordinance (Cap. 57) treats most interns as employees, and an employee must be paid at least the statutory minimum wage. Business owners often ask if they can offer work experience without payroll costs. The legal position is clear. Unless the intern is a genuine student in a structured programme approved by their educational institution, you must provide remuneration and statutory holidays, plus rest days.

Unpaid Internship Hong Kong Law

Under the Employment Ordinance (Cap. 57), an "employee" is anyone engaged under a contract of employment. The Labour Department confirms an intern who performs work for an employer is generally considered an employee, regardless of the label "intern" or "trainee". This means the intern is entitled to the statutory minimum wage, rest days, statutory holidays, annual leave and sickness allowance, among other protections. An unpaid internship that does not meet the genuine student exception is therefore unlawful.

Hong Kong Intern Pay Requirements

Pay requirements depend on whether the intern qualifies as an employee. If the intern is an employee, you must pay at least the statutory minimum wage for every hour worked. You must also enrol the intern in a Mandatory Provident Fund (MPF) scheme if the intern is employed for 60 days or more, and you must take out employees' compensation insurance under the Employees' Compensation Ordinance (Cap. 282). Failure to meet these requirements can result in back-pay claims, MPF surcharges and prosecution by the Labour Department.

Is Unpaid Internship Legal in Hong Kong

An unpaid internship is legal only in narrow circumstances. The Labour Department recognises that a genuine student intern placed with an employer as part of a structured internship programme approved by their school, college or university is not an employee under the Employment Ordinance. In that case, the intern is there primarily for training and education, not to perform productive work. The programme must be part of the student's curriculum, and the employer must not treat the student as a substitute for a paid worker. If the intern is not a student, or if the placement is not part of an approved programme, the arrangement is likely an employment relationship requiring pay.

Internship Employment Ordinance Hong Kong

The Employment Ordinance (Cap. 57) applies to all employees, including interns who are not genuine students in an approved programme. The key test is whether a contract of employment exists. If the intern agrees to perform work for you in exchange for something of value (even if that "value" is only work experience), a contract may exist. The 4-18 rule (four weeks of continuous employment with at least 18 hours per week) triggers additional statutory entitlements such as paid annual leave and severance payment. Even if the intern works fewer hours, the minimum wage still applies.

Risks of Misclassifying an Intern

If you treat a paid employee as an unpaid intern and the Labour Department or a court determines that the person was an employee, you face liability for:

• Unpaid wages at the statutory minimum wage rate
• Unpaid statutory holiday pay and annual leave
• Unpaid MPF contributions plus surcharges
• Penalties for failing to take out employees' compensation insurance
• Possible prosecution for breach of the Employment Ordinance

The Inland Revenue Department may also reassess the intern's status and require you to file employer's returns (Form BIR56A and Form IR56B) for the period.

What to Do Next

Before offering an unpaid internship, confirm in writing that the intern is enrolled in a structured programme at a recognised educational institution and that the placement is part of that programme. Obtain a letter from the institution confirming the arrangement. If the intern is not a student, you must treat them as an employee and comply with all pay, MPF and insurance requirements. For further guidance, consult the Labour Department's website or seek legal advice specific to your situation.