Regulating the freelancer economy in Hong Kong: HR considerations amidst gig worker proposals

With the new regulations expected to focus on compensating gig workers following work-related accidents, Andrea Randall, Partner and Head of the Employment Practice at RPC Hong Kong, outlines employers' considerations.

The rise of the gig economy is reshaping the world of work. Across industries, flexible and on-demand jobs have become an integral part of urban life, and Hong Kong is no exception. A common dilemma they all share: if they get into an accident, fall sick, or get fired, will they be entitled to the full spectrum of employment benefits?

To ensure protection for this growing segment of the job market, the Hong Kong government announced in May that it would introduce proposals to a regulatory framework aimed at enhancing platform workers’ right and benefits within the year. The new regulations will have a particular focus on compensating workers following work-related accidents. While music to the ears of gig economy workers, for employers and HR leaders, the big question is what reforms may be on the horizon.

“Employee” versus “Independent Contractor”

In Hong Kong, as in many places, employment law hinges on the difference between an “employee” and an “independent contractor”. Employees have statutory rights under the Employment Ordinance. These rights include minimum wage, annual leave, sickness and parental pay, and protection against wrongful dismissal. Independent contractors, unfortunately, are left to fend for themselves.

Yet determining status is rarely straightforward. There is no single test and the burden often falls on workers to prove they are employees, which leaves both sides in a state of uncertainty.

This uncertainty is especially visible in the gig economy, which has rapidly expanded in recent years. In Hong Kong 2023, six delivery workers for Zeek successfully argued they were employees. The court cited Zeek’s control over the workers’ activities, their inability to delegate tasks, absence of management responsibilities, and dependence on the platform as indicators of an employment relationship. A year later, however, a Deliveroo rider was ruled to be an independent contractor. Here, the court pointed to the fact that riders were not provided with equipment and retained significant autonomy, including the freedom to accept or decline jobs, outsource tasks, and choose how they performed their work - factors which underscored their flexibility and independence.

These contrasting rulings illustrate the blurred lines between employment and self-employment in gig work. For workers, it can lead to confusion regarding their legal entitlements. For companies, it can heighten the risk of non-compliance with employment laws and lead to more disputes.

In July 2025, the Hong Kong government unveiled a proposal to regulate ride-hailing platforms. Under the framework, platforms would need to secure a dedicated licence and meet strict conditions. Drivers would have to pass eligibility checks, including age, traffic record, and mandatory assessments. The plan also considers capping the number of vehicles permitted, with details expected in secondary legislation in 2026.

Although ride-hailing is the first target, the implications will likely extend further. Other gig sectors, particularly food delivery and retail logistics, could face similar regulatory scrutiny, signalling a move toward greater oversight and accountability across platform work.

Lessons from other jurisdictions

Hong Kong is not alone in navigating these challenges. Other markets have adopted reforms that could serve as useful models:

• Singapore has introduced a Platform Workers Framework to bridge the gap between employees and contractors. It mandates workplace injury insurance, retirement contributions to the Central Provident Fund (CPF), and collective representation rights.
• United Kingdom recognises a third category of “worker”, distinct from employees and the self-employed. Workers are entitled to minimum wage, paid holidays, and protection from discrimination. The landmark Uber BV v Aslam case in 2021 confirmed that many gig workers qualify for these rights. Looking ahead, the UK government is considering a simplified two-tier system that would still extend protections to most platform workers.

In Hong Kong, policymakers and unions are taking lessons from the UK and Singapore’s model to finesse its proposal for a regulatory framework targeting gig economy workers.

At a Panel on Manpower meeting in March, policymakers discussed the idea of “standard contracts” that would grant platform workers a status separate from traditional employees or independent contractors, mirroring the UK’s “worker” category. In parallel, the Federation of Hong Kong and Kowloon Labour Unions (one of the largest labour organisations in the city) has advocated for legislation akin to those in Singapore’s Platform Workers Act, which would offer statutory workplace injury coverage, retirement benefits, and formal negotiation channels for gig workers.

HR leaders saddle up ahead of reforms

To proactively prepare for upcoming reforms and maintain positive relationships with gig workers, HR leaders should consider the following:

1. HR leaders may want to begin by identifying all individuals engaged as contractors, freelancers, or gig workers within the organisation. Once identified, it is essential to examine the contracts in place to ensure they clearly define each worker’s status, rights, and obligations, and to confirm that the terms do not inadvertently create an employment relationship. Additionally, it might be sensible to assess day-to-day working practices for signs of control, integration, or supervision that could expose the organisation to reclassification risks.
2. HR leaders should actively monitor legislative developments and recent court decisions that may impact worker status and protections. Additionally, HR leaders should establish a clear process for promptly reviewing and updating internal policies and contracts in response to new laws or reforms.
3. Companies should ensure that contracts with gig workers are clearly drafted to define the scope and nature of their work. Contractual terms which resemble those imposed on employees, will need to be carefully scrutinised as these may risk reclassification of gig workers as employees. It is also important to include provisions that allow for adaptation in response to future legal changes.
4. The onboarding and engagement with gig workers should be tailored to ensure HR communicates rights, responsibilities, and any potential legal changes clearly and transparently, ensuring gig workers understand their role and obligations.
5. Conduct regular risk assessments to identify and address potential issues such as misclassification, tax obligations, Mandatory Provident Fund (MPF) requirements, and statutory entitlements. It is essential to seek legal advice on contract wording and operational practices, particularly as legislative reforms approach, to ensure that agreements do not inadvertently create employment relationships or fail to meet regulatory standards.
6. Prepare for future workforce integration: HR leaders should undertake scenario planning to evaluate how potential legal reforms may affect workforce structure, costs, and compliance obligations. This involves modelling different outcomes – such as changes to statutory entitlements or worker classifications – and assessing their impact on the organisation.

All material contained in this article is provided for general information purposes only and should not be construed as legal, accounting, financial or tax advice, or as opinion to any person or specific case. RPC and HRO accept no responsibility for any loss or damage arising directly or indirectly from action taken, or not taken, which may arise from reliance on information contained in this article. You are urged to seek legal advice concerning your own situation and any specific legal question that you may have. 

Authors' photo / Provided