ARTICLE
22 October 2024

Hong Kong Policy Address 2024 – Key Employment Initiative Insights For Employers And HR Practitioners

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Hong Kong Chief Executive John Lee unveiled a number of initiatives aimed at enhancing the employment landscape, improving employee protection and addressing talent...
Hong Kong Employment and HR

Hong Kong Chief Executive John Lee unveiled a number of initiatives aimed at enhancing the employment landscape, improving employee protection and addressing talent shortages in his 2024 Policy Address. 

Here are the key highlights: 

  1. Attracting and Retaining Talent: The HKSAR Government will reform various aspects of the existing talent admission regime to address a projected shortage of workers across different sectors and attract experienced specialists in specific skilled trades. These reforms include:
    1. Updating the Talent List (an enhanced immigration policy) to include talent required for the development of the "eight centres", namely: the international financial centre, international innovation and technology centre, East-meets-West centre for international cultural exchange, international trade centre, international shipping centre, international aviation hub, centre for international legal and dispute resolution services in the Asia Pacific region, and regional intellectual property trading centre. 
    2. Expanding the list of universities under the Top Talent Pass Scheme to 211.
    3. Extending the validity period of the first visa of high income talent under the Top Talent Pass Scheme from two to three years.
    4. Across-the-board improvements for the General Employment Policy, Admission Scheme for Mainland Talents and Professionals and Quality Migrant Admission Scheme.
    5. Extending for two years the pilot arrangement of including graduates from the GBA campuses of Hong Kong universities under the Immigration Arrangements for Non local Graduates.
  2. Enhancing Employee Protection:
    1. The Government will implement a 25-year subsidy scheme exceeding HK$33 billion to share out employers' expenses after the abolition of the mechanism that allows employers to use accrued benefits of their mandatory MPF contributions to offset severance and long service payments. The abolition of the MPF offsetting mechanism will take effect from 1 May 2025. For details see our earlier update here
    2. The Government will review the coverage of ex-gratia severance payments under the Protection of Wages on Insolvency Fund and explore increasing the ceiling of ex-gratia payments.
    3. A new annual review mechanism for the Statutory Minimum Wage will be implemented - and the first Statutory Minimum Wage rate derived under the new mechanism will take effect from 1 May 2026. 
    4. The continuous contract requirement under the Employment Ordinance, which is relevant for determining majority of the statutory benefits, will be amended by relaxing the threshold from working 18 hours in a week for four consecutive weeks to an aggregate of 68 hours in four weeks. See our earlier update here for details. The amendment bill will be introduced to the Legislative Council in the first half of 2025.
  3. Strengthening training of local workforce: The Employees Retraining Board will undergo a comprehensive reform to expand its role from providing employment-related training for low-skilled workers to devising skills-based training programmes for the entire workforce. Near-term measures include lifting the restriction on educational attainment of trainees and increasing the annual number of training places by at least 15,000. This reform aims to support lifelong learning and skill acquisition, which is crucial for adapting to rapid industry developments and technological advancement. Two vacant school premises will be made available for application by established and experienced trade unions to provide training courses for different industries (particularly the construction industry).
  4. Enhancing MPF system: To encourage proactive management of MPF investments, promote market competition and create room for fee reductions, the Mandatory Provident Fund Schemes Authority will implement the "full portability" proposal under which employees will be allowed to transfer accrued benefits derived from their employers' mandatory contributions to a scheme of their choice, making use of the eMPF platform which was launched in June 2024.
  5. Occupational Safety and Health Initiatives: To enhance worker safety and reduce workplace accidents, the Government mandated the adoption of the Smart Site Safety System (4S) for mobile plants in designated private-building works. It will also formulate safety guidelines with improved occupational safety standards, promote optimal use of robotic technology and enhance industry training. 
  6. Encouraging employment among the middle-aged and elderly: The Government launched a three-year Re-employment Allowance Pilot Scheme on 15 July 2024 to encourage elderly and middle-aged persons to enter the labour market. Employers are encouraged to adopt family-friendly employment practices through the Good Employer Charter 2024, such as including flexible work arrangements. 

Takeaways

These initiatives reflect the HKSAR Government's commitment to creating a more supportive and equitable employment environment in Hong Kong and strengthening the competitiveness of our city.
Employers and HR practitioners should stay informed about these changes to ensure compliance and leverage new opportunities for workforce development.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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