By , Hong Kong recruitment research

Hong Kong Recruitment Agency Fees: A Contract Checklist

The Labour Department states a prescribed commission rule for job seekers. An employment agency may receive no more than 10% of a job seeker’s first-month wages after a successful placement (Employment Agencies Portal). Employers need the agency’s own written, itemised terms to compare commercial fees. The official guidance does not publish a standard employer percentage.

Start with the person who pays

A job seeker and an employer face different fee questions.

For a job seeker, the rule comes from the Employment Agency Regulations. An employment agency may not collect a fee or expense connected with placement beyond the prescribed commission. The current cap is 10% of first-month wages after successful placement, and the job seeker should obtain a receipt (Employment Agencies Portal). Report a request for money before placement or a charge above that cap to the Employment Agencies Administration.

For an employer, do not apply the job-seeker cap to the agency’s invoice. The Labour Department tells employers to put service details, scope, itemised fees, refund arrangements, and other agreed terms into a written service agreement before engagement (Labour Department). Ask the agency to state its employer terms. A market percentage copied from another contract cannot replace that document.

Read the employer fee trigger

Ask the agency to complete one fee sheet for the mandate. Avoid labels such as “contingency” or “retained” unless the contract defines them. Record these fields:

Contract fieldDetail to request
ScopeRoles, locations, employment types, and work the agency will perform
Fee basisFixed amount or formula, currency, and any separate expense or tax
Payment triggerThe event that creates the invoice, such as acceptance, signing, or start date
Due dateInvoice date, payment period, and any interest or late-payment term
Candidate introductionThe act that gives the agency a claim to a fee and the period attached to it
CancellationAmount due if the employer pauses or closes the search
Early departureReplacement, credit, refund, exclusions, and time limit

Use the table to give each agency the same space to state its offer. If one proposal omits a field, ask for an amendment before comparing price.

Compare proposals on the same fields

Normalize each proposal into a decision table. Use the same assumed role and compensation where a fee uses a formula.

QuestionAgency AAgency B
Total fee under the same hiring assumption
Invoice trigger
Included search and screening work
Named reports or meetings
Cancellation amount
Early-departure remedy
Main exclusions

Keep assumptions beside the total. A low headline figure can cover less work or create an earlier payment trigger. The written fields show the difference without relying on a claimed “usual” rate.

Check the licence and keep the agreement

Search the agency’s name in the official licensed-agency portal before engagement. Save the result with the proposal, then reconcile the name on the official record, contract, and invoice.

Keep the signed agreement, amendments, invoice, and receipt in one file. The Labour Department says the written service agreement helps an employer seek redress if the agency does not deliver the agreed service. It also tells employers to obtain a receipt for each payment (Labour Department).

Common questions

Can a Hong Kong recruitment agency charge a job seeker?

Yes, within the prescribed limit. The current maximum is 10% of the job seeker’s first-month wages after a successful placement. The agency may not add other placement-related fees or expenses, and the job seeker should obtain a receipt (Employment Agencies Portal).

Does the 10% rule set the fee paid by an employer?

No. The official 10% rule concerns commission received from a job seeker. An employer should obtain a written agreement that states the service scope, itemised fees, and refund terms (Labour Department).

Is there an official standard percentage for employer recruitment fees?

The cited Labour Department guidance does not publish one. Ask each agency for its fee basis, payment trigger, expenses, cancellation terms, and early-departure remedy in writing, then compare the same hiring assumption.

Which document should an employer keep after payment?

Keep the signed service agreement and the receipt, along with later amendments and invoices. The Labour Department advises employers to obtain a receipt for payments and to record the agreed terms in a written agreement (Employment Agencies Portal).

Sources

All information is compiled from sources available on the open internet.