Anyone operating an employment agency in Hong Kong needs a licence. For employers, checking that licence is one of the fastest due diligence steps available, and one of the most often skipped. This guide explains how employment agency licensing works in Hong Kong, how to verify a licence before you sign, and the red flags worth walking away from.
The legal framework in one paragraph
Employment agencies in Hong Kong are regulated under Part XII of the Employment Ordinance (Cap. 57) and the Employment Agency Regulations (Cap. 57A), administered by the Employment Agencies Administration of the Labour Department. Operating an employment agency without a valid licence or a certificate of exemption is an offence. The Labour Department also publishes a Code of Practice for Employment Agencies setting out the standards a licensee is expected to meet.
What a Hong Kong employment agency licence actually covers
- It is tied to an address. A licence authorises operation at the specific business address on the licence. A separate duplicate licence is required for each branch office.
- It lasts one year. The licence is valid for twelve months from the date of issue, and renewal must be applied for no later than two months before it expires.
- It must be displayed. The licence, and the Second Schedule to the Employment Agency Regulations setting out the prescribed commission, must be displayed prominently at the licensed address.
- Changes must be notified. Changes to the business, such as address or the people running it, have to be reported to the Employment Agencies Administration.
How to verify an agency before you engage them
Four checks, none of which take more than a few minutes:
- Ask for the licence number. A licensed agency will give it without hesitation. FuturRecruit operates under Employment Agency Licence 83821.
- Check it against the Labour Department’s published list. The Employment Agencies Administration maintains a public list of licensed employment agencies, which you can search by name or address.
- Check the address matches. A licence is address-specific. If the agency is operating from somewhere other than the licensed address, ask why.
- Ask about the expiry date. Licences are annual. A licence that expired four months ago is not a licence.
What a licensed agency may charge a job seeker
A licensed employment agency in Hong Kong may only charge a job seeker the prescribed commission under the Second Schedule to the Employment Agency Regulations. That commission is capped at 10% of the job seeker’s first month’s wages, and is only payable after the job seeker has been successfully placed and has received those wages.
This is a hard rule, not a guideline. An agency that asks candidates for an upfront registration fee, a placement deposit, a training or document fee, or an ongoing share of salary is operating outside the Regulations. As an employer, an agency that treats candidates that way will eventually treat you the same way.
Employer-side fees are different and are a matter of commercial agreement between you and the agency. Our guide to recruitment agency fees in Hong Kong covers what those normally look like.
Red flags to walk away from
- No licence number offered, or a number that does not appear on the Labour Department’s list.
- Fees charged to candidates beyond the prescribed commission.
- Refusal to put the rebate or replacement terms in writing.
- CVs sent without the candidate’s knowledge or consent.
- Pressure to sign terms before you have seen a single candidate.
- No named consultant, or a different contact on every email.
What to put in your agency agreement
Once the licence checks out, the agreement is where the rest of the risk sits. Cover at minimum: the fee basis and whether it applies to base salary or total first-year cash; the rebate or replacement period and whether it is a refund or a replacement; the ownership period for candidate introductions; data protection obligations under the Personal Data (Privacy) Ordinance; and who is responsible for right-to-work and visa checks.
If you are setting up an agency yourself
Recruiters going independent in Hong Kong need the licence before they trade, not after the first placement. In outline, that means applying to the Employment Agencies Administration with details of the business and the people who will operate it, satisfying the fit and proper requirements, having a suitable business address, and displaying the licence and prescribed commission schedule once granted. Most new agencies also need a Hong Kong company behind them first, which is covered in our guide to registering a company in Hong Kong.
Frequently asked questions
How do I check if a Hong Kong recruitment agency is licensed?
Ask for the licence number and check it against the list of licensed employment agencies published by the Labour Department’s Employment Agencies Administration. Confirm the business address on the licence matches where the agency actually operates.
How long is an employment agency licence valid in Hong Kong?
One year from the date of issue. Renewal must be applied for no later than two months before expiry.
Can an employment agency charge me a fee to find me a job?
Only the prescribed commission of up to 10% of your first month’s wages, and only after you have been placed and paid. Upfront fees are not permitted.
Does an overseas recruiter need a Hong Kong licence?
If the business is operating as an employment agency in Hong Kong, it falls under Part XII of the Employment Ordinance. If you are unsure whether your model is caught, take advice before you trade rather than after.
Work with a licensed Hong Kong agency
FuturRecruit holds Employment Agency Licence 83821 and works with employers and with other recruitment agencies across Hong Kong, the UK and the US. Learn more about our team or get in touch.
Related guides
- Recruitment Agency Fees in Hong Kong — what agencies charge and how to negotiate
- How to Hire Staff in Hong Kong — the full process and cost of a Hong Kong hire
- How to Register a Company in Hong Kong — incorporation step by step
- Recruitment Process Outsourcing in Hong Kong — RPO models, pricing and when it beats agency fees
