ARTICLE
13 October 2026

What The 2026 Policy Address Means For Employers In Hong Kong

LS
Lewis Silkin

Contributor

We have two things at our core: people – both ours and yours - and a focus on creativity, technology and innovation. Whether you are a fast growth start up or a large multinational business, we help you realise the potential in your people and navigate your strategic HR and legal issues, both nationally and internationally. Our award-winning employment team is one of the largest in the UK, with dedicated specialists in all areas of employment law and a track record of leading precedent setting cases on issues of the day. The team’s breadth of expertise is unrivalled and includes HR consultants as well as experts across specialisms including employment, immigration, data, tax and reward, health and safety, reputation management, dispute resolution, corporate and workplace environment.
Hong Kong's Chief Executive has unveiled sweeping employment law reforms in the 2026 Policy Address, introducing statutory protections for delivery workers, tightening imported labour controls, and accelerating MPF system changes. These measures reflect the Government's commitment to protecting local workers while addressing the challenges of an ageing workforce and evolving labour market dynamics.
Hong Kong Employment and HR

On 16 September 2026, the Chief Executive delivered his 2026 Policy Address – and there's plenty in it for employers to take note of. From new protections for delivery workers and implementing measures to accommodate for the city’s ageing population, these measures signal where the Government is heading. Here's our take on the key changes and why they matter.

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

[View Source]

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More