Statutory protection for delivery workers – a significant development
The Government is developing new legislation that would give digital platform workers in food and goods delivery statutory compensation for work injuries. Stakeholder engagement will be a key part of the process as the legislation takes shape.
Many delivery workers currently fall outside the statutory work-injury compensation framework, and this legislation is intended to close that gap. For platform operators, it could mean new obligations and costs – so it's worth keeping a close eye on the detail as it emerges.
MPF reforms moving ahead
The Government is pressing on with changes to the Mandatory Provident Fund (“MPF”) system. An amendment bill is expected before the Legislative Council by year-end, aimed at making it easier to recover default contributions from employers. Phase One of MPF "Full Portability" is set to go live this year, and Phase Two legislation is being prepared to extend the benefits to the remaining employees.
These reforms are designed to give employees greater control over their retirement savings while strengthening accountability for employers who fail to make required MPF contributions. With stronger recovery and enforcement mechanisms on the horizon, employers would be well advised to review their MPF compliance arrangements.
Tighter controls on imported labour
The Government isn't backing away from its position that local workers come first. Employers can access imported labour only where they can substantiate a genuine shortage of suitable local candidates and demonstrate that local recruitment efforts have failed to meet their staffing needs. In addition, imported workers' wages must be at least at the median level for local workers in the same role.
The vetting process under the Enhanced Supplementary Labour Scheme is getting stricter. A tiered mechanism now applies, with Tier 2 occupations (currently key kitchen and table-service posts in the food and beverage sector) facing tougher manning-ratio requirements, mandatory attendance at designated recruitment fairs, and a longer local recruitment period of six weeks (up from four). A new digital application platform is also being developed to improve compliance monitoring.
The Government’s intentions are clear that overseas workers are meant to fill gaps after exhausting the local talent pool.
Getting people back into work
The Re-employment Allowance Pilot Scheme has already delivered over 53,000 placements, around a quarter of which that went to people aged 60 and above. The Government is now putting more resources behind the scheme and will publish the mid-term review results by year-end.
With Hong Kong's ageing population, keeping experienced workers in the workforce isn't just good social policy, it is essential to sustaining the city's long-term economic growth and competitiveness.
Other developments to note
Other developments worth noting include the Government's continued focus on construction-sector occupational health and safety through enhanced enforcement, technology-driven initiatives and education, and a strengthened crackdown on illegal employment (in particular, in relation to refoulment claims) through more coordinated enforcement and tougher deterrence measures. At the same time, as the Government monitors the impact of AI on Hong Kong's labour market and invests in workforce upskilling, employers should consider how AI may reshape their future workforce needs and training strategies. Our report on AI in the workplace and building for future readiness explores these issues in detail: AI in the workplace: From experimentation to accountability.
