Referral Letter Template for Hong Kong

A referral letter is a formal document you use to introduce one party to another for business, employment, or professional purposes in Hong Kong. This document serves as both a professional introduction and a legal record of the referral relationship, ensuring all parties understand the terms and basis of the recommendation.

When do you need this document?

You need a referral letter when making formal introductions between business contacts, referring job candidates to potential employers, or connecting clients with service providers. This document is particularly important when the referral involves compensation arrangements, as it establishes clear terms and protects against potential legal issues. Professional service providers, recruitment agencies, and business development managers frequently use referral letters to document their networking activities and maintain professional relationships while ensuring legal compliance.

Key legal considerations

Your referral letter must comply with Hong Kong's Personal Data (Privacy) Ordinance when sharing personal information about the referred party. You need explicit consent before disclosing personal details and must ensure the information is used only for the stated purpose. If your referral arrangement involves fees or commissions, the Prevention of Bribery Ordinance requires transparency about compensation to avoid illegal kickback schemes. The document should clearly state the basis for your referral, your relationship with the referred party, and any financial arrangements. You must also ensure the referral doesn't create unintended employment relationships under the Employment Ordinance or anti-competitive practices under the Competition Ordinance.

Legal requirements in Hong Kong

Under Hong Kong law, your referral letter must meet basic contract formation requirements under the Contracts Ordinance, including clear terms and mutual understanding between parties. The Personal Data (Privacy) Ordinance mandates that you obtain proper consent before sharing personal information and implement appropriate data protection measures. If you're receiving referral fees, you must ensure transparency and avoid arrangements that could constitute bribery under Cap. 201. The document should include proper identification of all parties, clear scope of the referral, and any relevant disclaimers about the referrer's liability. For employee referrals, you must ensure the arrangement doesn't inadvertently create employment obligations or violate competition laws by restricting the referred party's future opportunities.