Employment in Hong Kong

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This article gives detailed information on the employment situation in Hong Kong.

Contents

Overview

Hong Kong has an area of 1,106 square kilometres and a population of about 7,413,070 {2021 Hong Kong Census}. [1] Despite its small size, Hong Kong is currently ranked the 15th largest exporting country in the world as of 2008. [2] The total value of visible trade amounted to $3,548.2 billion in 2003, and exports totalled $362.1Bn in 2008. During the period of 2004 to 2007, the gross domestic product (GDP) grew at an average annual rate of 7.3% in real terms, to HK$1,627.5 billion (US$208.7 billion) in 2007. Per capita GDP reached HK$235,134 (US$30,157).

At the end of 2007, 3.46 million of the 3.65 million labour force were employed full-time, 117,800 were unemployed and 75,500 were considered under-employed. The unemployment rate averaged 4.1% in 2007, the fourth straight year of decline. [3] It has since then increased to 5.3% by 2009. [4] In 2015, this has decreased to 3.4%. [5] In 2022, the unemployment rate was 4.1%. [6]

Labour legislation and labour standards

The momentum in improving working conditions, Occupational Safety and health and employees' rights and benefits has been kept up through an extensive programme of labour legislation. Some 42 pieces of legislation were enacted between 1997 and 2001. More are in the pipeline. Hong Kong aims at applying relevant International labour standards as the local circumstances allow. As of 28 April 2000, Hong Kong is following 7 Conventions, exceeding most countries in the region.

Working conditions

The Employment Ordinance provides the framework for a comprehensive code of employment. It governs the payment of wages, the termination of employment contracts and the operation of employment agencies. The law provides statutory holidays with pay, sick leave, maternity protection, rest days, paid annual leave and employment protection for employees. All employees have statutory protection against anti-union discrimination. The law also provides for severance pay to workers made redundant, and long service payment to workers with long service who are dismissed for reasons other than redundancy, or on disciplinary grounds, who die in service, or who resign on grounds of ill health or old age. Employees who are owed wages, wages in lieu of notice and/or severance payments by insolvent employers may apply for ex-gratia payment from the Protection of Wages on Insolvency Fund which is financed by an annual levy on business registration certificates. The Employment of Children Regulations prohibit the employment of children aged under 15 in all industrial undertakings. Subject to certain protective restrictions, children aged 13 and 14 who are attending school may take up part-time employment in the non-industrial sectors. The Employment of Young Persons (Industry) Regulations govern the employment conditions of young persons aged 15 to 17 in industrial undertakings. These young persons are not allowed to work more than eight hours a day and 48 hours a week. Overtime work for them is prohibited. Eight special enforcement teams of labour inspectors are responsible for monitoring employers' compliance with various labour legislation to safeguard the rights and benefits of local and imported workers.

Trade unions and industrial disputes

Hong Kong people have the right and freedom to form and join trade unions. At the end of December As of 2001 there were 654 registered trade unions, consisting of 610 employees' unions, 25 employers' associations and 19 mixed organisations of employers and employees. The total estimated membership was around 683,000. Hong Kong has an outstanding record of industrial peace. In 2001, it lost 0.26 working day per 1,000 workers. During the year, the Labour Department dealt with 31,698 labour problems, most of which were grievances involving claims of wages in arrears, wages in lieu of notice and holiday pay. There was one work stoppage, and the number of working days lost was 700.

Minor employment claims adjudication board

One source of employment in Hong Kong is street markets. HK street MARKET.JPG
One source of employment in Hong Kong is street markets.

To speed up the settlement of minor employment claims, the Minor Employment Claims Adjudication Board was set up in the Labour Department in 1994 for the adjudication of rights claimed under the Employment Ordinance and in accordance with individual employment contracts. The board hears claims by not more than 10 claimants for a sum not exceeding $8,000 per claimant. Hearings are conducted in public and procedures are simple and informal. Claims by more than 10 claimants, or more than $8,000 per claimant, are heard by the Labour Tribunal.

Labour Tribunal

The tribunal comes under the Judiciary and provides a quick, inexpensive and informal forum for settling labour disputes. It hears employment claims for a sum of money arising from the breach of a term of a contract of employment or the failure to comply with the Employment Ordinance or the Apprenticeship Ordinance.

Occupational safety and health

The Occupational Safety Officers of the Labour Department promote and protect the health and safety of employees in the industrial and non-industrial sectors. To reduce accidents and guard against ill-health, efforts are focused on legislative control, safety training, education and promotion. Under the Occupational Safety and Health Ordinance and the Factories and Industrial Undertakings Ordinance, 31 sets of regulations have been made to cover various aspects of hazardous activities in factories, building and engineering construction sites, restaurants, catering establishments, commercial premises and other workplaces. As of 2001, 126,470 inspections and 12,500 accident investigations were conducted. A total of 2 660 prosecutions were taken out with fines totalling $32.3 million. In 2001, 597 training courses on safety legislation for 6,391 people and 218 tailor-made briefing sessions for 6,874 employees in private and public sector organisations were given. Safety and health publications were distributed to members of the public through various outlets and 241 publication stands placed in major shopping centres, housing estates, clinics, transport stations, public utility service counters and government offices. The Occupational Safety Charter, setting out the rights of employees to enjoy a safe working environment and the employers' obligations to reduce the risk of accidents, remains a major promotion programme and as at the end of 2001, 558 organisations, including employer and employee bodies, have subscribed voluntarily to the charter. Five major publicity campaigns were launched in 2001, including a safety award scheme to promote safety in the catering industry, a programme to promote a greater awareness of occupational safety and health among small and medium enterprises, a safety award scheme to promote safety in the construction industry, a campaign to promote the Factories and Industrial Undertakings (Safety Management) Regulation and the Factories and Industrial Undertakings (Loadshifting Machinery) Regulation, and production of two television Announcement in Public Interests and four radio Announcement in Public Interests.

Employees compensation

Under the Employees' Compensation Ordinance, an employer is liable to pay compensation to an employee who suffers personal injury arising out of and in the course of employment, or to eligible family members of an employee who is killed in an accident at work. All employers are required to have valid employees' compensation insurance policies to cover their liabilities both under the ordinance and at common law. The Employees' Compensation Ordinance is administered by the Employees' Compensation Division of the Labour Department, which handled 201 fatal accident cases and 67,540 non-fatal cases in 2001. Among these non-fatal cases, 10,722 were minor injury cases with sick leave not exceeding three days. The division also provides administrative support to the Employees' Compensation Assessment Board which assess the percentage of permanent loss of earning capacity suffered by injured employees. The Pneumoconiosis Compensation Office offers assistance to persons who have contracted pneumoconiosis or in case of their death their family members to obtain compensation from the Pneumoconiosis Compensation Fund Board which is financed by a levy on the construction and quarrying industries.

Finding an employment in Hong Kong

For employers and job-seekers, there are several ways to find an employment in Hong Kong, either through public channels provided by the Hong Kong Government, NGOs in Hong Kong, and student affairs offices of university, or private channels like employment agencies, apps, magazines, newspapers, and leaflets. Shops among Hong Kong may advertise their vacancies on their windows directly.

For those who are not permanent residents of Hong Kong, they need to seek a suitable visa from the Immigration Department before starting their employment in Hong Kong. Some visa applications may require proof from the employer, such as an employment contract. On the other hand, it is worth to note that not all kinds of visa issued by the Immigration Department will make the visa holder become eligible to be employed in Hong Kong, for example, a visa for visit or a visa for transit in Hong Kong. [7] Employers in Hong Kong, who want to employ a non-permanent Hong Kong resident, they have to inspect the job-seekers' valid travel documents to ensure that they are free to take up any employment in Hong Kong without the Director of Immigration's prior permission and have not breached any condition of stay. To employ a person permitted to remain on visitor, student, employment condition or a person whose travel document is endorsed with a condition of stay that "Employment is not permitted", requires prior approval from the Director of Immigration. [8]

Public services for finding an employment in Hong Kong

The Labour Department provides free services for both employers and job-seekers. An employer, either from Hong Kong or even outside Hong Kong, can advertise its vacancies by submitting information to Job Vacancy Processing Centre of the Labour Department. After the vetting procedures complete, the job information will then be shown in the following channel maintained by the Labour Department: the website of Interactive Employment Service (iES), on the job cards at the Job Centres and Recruitment Centres, on the Interactive Employment Service Mobile App (iES Mobile App), Vacancies Search Terminals among Hong Kong. Jobs opening to applicants attaining a university degree certificate are also available on the Higher Education Employment Information e-Platform (HEEIP) website maintained by the Labour Department. Apart from the channels aforementioned, job-seekers can find job information through the Telephone Employment Service Centre of the Labour Department.

Through the Job Matching Programme, the Job Centres provide briefing, intensive job-matching and counselling services to unemployed job-seekers. Employers and job-seekers may also make use of the Interactive Employment Service (iES) provided by the department on the web to submit vacancy information or register for placement service. All vacancies received by the department are posted on the web site for public viewing. Members of the public may access the iES with internet connected personal computers, public computer facilities at district offices, community halls, public libraries and post offices, and public information kiosks distributed over Hong Kong.

To improve its operating environment and enhance the quality of service, the Labour Department has re-provisioned its Job Centres to include such facilities as briefing room, reading area and audio-visual corner for job-seekers. Telephones, fax machines and computers with internet connection are also available to facilitate job-seekers to search suitable jobs on the Internet, prepare resumes and make direct job applications with employers.

Private services for finding a job in Hong Kong

There are plenty of private channels for finding a job in Hong Kong, such as websites, apps, newspapers, magazines, employment agencies.

Employment assistance to people with disabilities

The Selective Placement Division provides free specialised employment assistance to people with disabilities seeking open employment. The service caters for the visually impaired, hearing impaired, physically handicapped, chronically ill, mentally handicapped and ex-mentally ill. During 2001, the division recorded 4,128 registrations and achieved 2,348 placements.

Employment distribution

Total employment in the third quarter of 2007 was 3.52 million. The employment distribution among various industry sectors was as follows:

Industry SectorEmployment (mn)Distribution (%)
Wholesale, retail, trade, catering, hotels1,056,85530.1%
Finance, insurance, real estate, business services509,25714.5%
Community social and personal services465,35613.3%
Transport, storage, communications189,8125.4%
Manufacturing155,9684.4%
Civil Service153,7684.4%
Other1,073,50030.6%
Total employment3,512,10098.3%

(Note: There may be a slight discrepancy between the sum of individual items and the total as shown in the table owing to rounding)

Hong Kong's economy has historically been driven by its status as one of the major transport and logistic hubs for East Asia. In more recent years, Hong Kong has seen other sectors become more important in its economy. Financial and banking services have become a much larger part of the high-end economy in Hong Kong and one of the major drivers of economic growth. The growth of these businesses has helped Hong Kong keep its position as one of the world's top economies.

Wages

A minimum wage law was passed in Hong Kong in July 2010. It requires the Chief Executive of Hong Kong to propose a minimum wage level, which he will do for the first time in November 2010; the Legislative Council will either approve or reject the amount. The law does not give the Legislative Council the power to amend the amount, and it is not applicable to foreign domestic helpers, who, under legislation specifically governing the employment of foreign domestic helpers, earn a minimum of HK$3,580 per month. [9] The wage level prevailing is essentially the result of interplay of supply and demand. Wages are usually calculated on hourly, daily, monthly, or piece rates. In September As of 2007, the average monthly wage rate for the supervisory, technical, clerical and miscellaneous non-production workers was HK$11,712. Based on the wage indexes, the average wage rate for this group of workers rose by 1.8% per annum in 1995–2007, and by 1.5% per annum in real terms. [10] The small difference is due to severe consumer price deflation. The overall average daily wage for the workers on public works construction projects was HK$565.60 at the end of 2007. [11]

In November 2010, legislators of the Hong Kong SAR Government agreed to set a minimum wage level of HK$28.00 (UK£2.29 or US$3.60) per hour, which came into force on 1 May 2011. [12]
Effective 1 May 2013, this was raised to HK$30.00 per hour.
Effective 1 May 2015, the minimum wage was raised to HK$32.50 per hour.
Effective 1 May 2017, the minimum wage was raised to HK$34.50 per hour.
Effective 1 May 2019, the minimum wage was raised to HK$37.50 per hour.

Effective 1 May 2023, the minimum wage was raised to HK$40 per hour

See also

Related Research Articles

Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.

Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties. Employees in some sectors may receive gratuities, bonus payments or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits may include health insurance, housing, and disability insurance. Employment is typically governed by employment laws, organisation or legal contracts.

<span class="mw-page-title-main">Wage</span> Payment by an employer to an employee for labour

A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as minimum wage, prevailing wage, and yearly bonuses, and remunerative payments such as prizes and tip payouts. Wages are part of the expenses that are involved in running a business. It is an obligation to the employee regardless of the profitability of the company.

Public holidays and statutory holidays in Hong Kong are holidays designated by the Government of Hong Kong. They allow workers rest from work, usually in conjunction with special occasions. Public holidays in Hong Kong consist of a mix of traditional Chinese and Western holidays, such as Lunar New Year, the Mid-Autumn Festival, and the Dragon Boat Festival, along with Christmas and Easter. Other public holidays include National Day and Hong Kong Special Administrative Region Establishment Day.

<span class="mw-page-title-main">Living wage</span> Minimum income to meet a workers basic needs

A living wage is defined as the minimum income necessary for a worker to meet their basic needs. This is not the same as a subsistence wage, which refers to a biological minimum, or a solidarity wage, which refers to a minimum wage tracking labor productivity. Needs are defined to include food, housing, and other essential needs such as clothing. The goal of a living wage is to allow a worker to afford a basic but decent standard of living through employment without government subsidies. Due to the flexible nature of the term "needs", there is not one universally accepted measure of what a living wage is and as such it varies by location and household type. A related concept is that of a family wage – one sufficient to not only support oneself, but also to raise a family.

<span class="mw-page-title-main">Salary</span> Form of periodic payment from an employer to an employee

A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. Salary can also be considered as the cost of hiring and keeping human resources for corporate operations, and is hence referred to as personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.

<i>Canada Labour Code</i> Canadian employment legislation

The Canada Labour Code is an Act of the Parliament of Canada to consolidate certain statutes respecting labour. The objective of the Code is to facilitate production by controlling strikes & lockouts, occupational safety and health, and some employment standards.

The Mandatory Provident Fund, often abbreviated as MPF (強積金), is a compulsory saving scheme for the retirement of residents in Hong Kong. Most employees and their employers are required to contribute monthly to mandatory provident fund schemes provided by approved private organisations, according to their salaries and the period of employment.

<span class="mw-page-title-main">Salaries tax</span>

Salaries tax is a type of income tax that is levied in Hong Kong, chargeable on income from any office, employment and pension for a year of assessment arising in or derived from the territory. For purposes of calculating liability, the period of assessment is from April 1 to March 31 of the following year.

<span class="mw-page-title-main">Foreign domestic helpers in Hong Kong</span> Domestic helpers in Hong Kong from other countries

Foreign domestic helpers in Hong Kong are domestic workers employed by Hongkongers, typically families. Comprising five percent of Hong Kong's population, about 98.5% of them are women. In 2019, there were 400,000 foreign domestic helpers in the territory. Required by law to live in their employer's residence, they perform household tasks such as cooking, serving, cleaning, dishwashing and child care.

<span class="mw-page-title-main">Minimum wage in the United States</span>

In the United States, the minimum wage is set by U.S. labor law and a range of state and local laws. The first federal minimum wage was instituted in the National Industrial Recovery Act of 1933, signed into law by President Franklin D. Roosevelt, but later found to be unconstitutional. In 1938, the Fair Labor Standards Act established it at 25¢ an hour. Its purchasing power peaked in 1968, at $1.60 In 2009, it was increased to $7.25 per hour, and has not been increased since.

The New York State Department of Labor is the department of the New York state government that enforces labor law and administers unemployment benefits.

Iowa Workforce Development is a government agency in the American state of Iowa, responsible for overseeing workplace safety, workers' compensation, unemployment insurance and job training services. It was formed in May 1996.

<span class="mw-page-title-main">California Labor Code</span> Collection of Californian civil law statutes

The California Labor Code, more formally known as "the Labor Code", is a collection of civil law statutes for the State of California. The code is made up of statutes which govern the general obligations and rights of persons within the jurisdiction of the State of California. The stated goal of the Department of Industrial Relations is to promote and develop the welfare of the wage earners of California, to improve their working conditions and to advance their opportunities for profitable employment."

<span class="mw-page-title-main">Indian labour law</span> Laws regulating labour in India

Indian labour law refers to law regulating labour in India. Traditionally, the Indian government at the federal and state levels has sought to ensure a high degree of protection for workers, but in practice, this differs due to the form of government and because labour is a subject in the concurrent list of the Indian Constitution. The Minimum Wages Act 1948 requires companies to pay the minimum wage set by the government alongside limiting working weeks to 40 hours. Overtime is strongly discouraged with the premium on overtime being 100% of the total wage. The Payment of Wages Act 1936 mandates the payment of wages on time on the last working day of every month via bank transfer or postal service. The Factories Act 1948 and the Shops and Establishment Act 1960 mandate 15 working days of fully paid vacation leave and 7 casual leaves each year to each employee, with an additional 7 fully paid sick days. The Maternity Benefit (Amendment) Act, 2017 gives female employees of every company the right to take 6 months' worth of fully paid maternity leave. It also provides for 6 weeks worth of paid leaves in case of miscarriage or medical termination of pregnancy. The Employees' Provident Fund Organisation and the Employees' State Insurance, governed by statutory acts provide workers with necessary social security for retirement benefits and medical and unemployment benefits respectively. Workers entitled to be covered under the Employees' State Insurance are also entitled to 90 days worth of paid medical leaves. A contract of employment can always provide for more rights than the statutory minimum set rights. The Indian parliament passed four labour codes in the 2019 and 2020 sessions. These four codes will consolidate 44 existing labour laws. They are: The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Code on Wages 2019.

<span class="mw-page-title-main">Minimum Wage Ordinance</span>

The Minimum Wage OrdinanceCap. 608 is an ordinance enacted by the Legislative Council of Hong Kong to introduce a minimum wage in Hong Kong in July 2010. The executive branch proposed a minimum wage of HK$28 (~US$3.61) per hour in November 2010, which the Legislative Council voted to accept after much debate in January 2011. It came into effect on 1 May 2011. Prior to this, there had also been a fixed minimum wage for one specific class of workers, foreign domestic helpers, of HK$3,740/month. The Hong Kong statutory minimum wage for non-domestic workers is HK$37.5 (~US$4.83) per hour, effective 1 May 2019.

The Labor policy in the Philippines is specified mainly by the country's Labor Code of the Philippines and through other labor laws. They cover 38 million Filipinos who belong to the labor force and to some extent, as well as overseas workers. They aim to address Filipino workers’ legal rights and their limitations with regard to the hiring process, working conditions, benefits, policymaking on labor within the company, activities, and relations with employees.

<span class="mw-page-title-main">Wage theft</span> Denial of wages or employee benefits rightfully owed to an employee

Wage theft is the failing to pay wages or provide employee benefits owed to an employee by contract or law. It can be conducted by employers in various ways, among them failing to pay overtime; violating minimum-wage laws; the misclassification of employees as independent contractors; illegal deductions in pay; forcing employees to work "off the clock", not paying annual leave or holiday entitlements, or simply not paying an employee at all.

<span class="mw-page-title-main">Wisconsin Department of Workforce Development</span> Wisconsin State Department charged with building and strengthening Wisconsins workforce.

The Wisconsin Department of Workforce Development (DWD) is an agency of the Wisconsin state government responsible for providing services to Wisconsin workers, employers, and job-seekers to meet Wisconsin's workforce needs. To effect its mission, the Department administers unemployment benefits and workers' compensation programs for the state of Wisconsin; ensures compliance with state laws on wages and discrimination; provides job resources, training, and employment assistance for job-seekers; and engages with employers to help them find and maintain adequate staffing for their businesses.

On the 1st May 2014 Seattle's Mayor Ed Murray announced plans to increase Seattle's minimum wage to $15 per hour incrementally over the next few years. Seattle was the first big city in the United States to raise its minimum wage to $15 after the rise of the "Fight for 15 movement". This policy decision resulted in Seattle having the highest minimum wage of any major city in the United States. Once Seattle raised its minimum wage many other major cities around the country also took action to increase the pay of low wage workers. There has been much debate over the effects the increases to the minimum wage have had on employment and overall economic conditions in Seattle. To determine the impacts of the policy a number of studies have been conducted; the most notable being research by the University of Washington and the University of California, Berkeley.

References

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  2. https://www.cia.gov/library/publications/the-world-factbook/rankorder/2078rank.html Archived 27 April 2019 at the Wayback Machine Ranking of countries by Export $
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  5. "Hong Kong unemployment rises to 3.4pc". 19 November 2012.
  6. "Web Table". www.censtatd.gov.hk. Retrieved 28 April 2023.
  7. "Visit/Transit". Immigration Department . Retrieved 14 March 2020.
  8. "Don't Employ Illegal Workers". Immigration Department . Retrieved 14 March 2020.
  9. "Hong Kong OKs minimum wage law". The Times of India . 17 July 2010. Retrieved 19 July 2010.
  10. Hong Kong Monthly Digest of Statistics, March 2008, p. 37. Archived 6 April 2011 at the Wayback Machine
  11. Hong Kong Monthly Digest of Statistics, March 2008, p. 36. Archived 6 April 2011 at the Wayback Machine
  12. "CAP 608 MINIMUM WAGE ORDINANCE Schedule 3 Prescribed Minimum Hourly Wage Rate".