Hong Kong introduces sector-specific labour importation schemes and enhanced Supplementary Labour Scheme

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Applications for the sector-specific labour importation schemes for the construction and transport sectors are set to begin in July 2023, with a total quota of 20,000 for both sectors.

Hong Kong is facing structural labour force shrinkage owing to an ageing population. To address acute manpower shortages across various sectors, the HKSAR government has announced the introduction of the sector-specific labour importation schemes for two key sectors - construction and transport sectors - as well as the enhancement of the coverage and operations of the existing Supplementary Labour Scheme (SLS).

The sector-specific labour importation schemes

Subject to fulfilment of the specified parameters, employers in the construction and transport sectors can apply for quotas for importation of labour. The manning ratio in general is on a par with that of the SLS, i.e. 1:2 (one imported labour to two full-time local staff). Requirement of local recruitment is deemed fulfilled if the applicants submit proof of recruitment conducted within four months preceding an application through channel(s) specified by the concerned bureaux/department(s).

The total quota for the two sector-specific labour importation schemes is 20,000, comprising:

• the construction sector: 12,000
• the transport sector: 8,000
  • the aviation industry: 6,300
  • the public light bus (PLB) /coach trade: 1,700

Employers must engage the imported labour under a Standard Employment Contract, and pay the Employees Retraining Levy at the start of the contract period (HK$400 per month for each imported worker). The wage levels of imported labour must be no less than the median monthly wages of relevant posts in Hong Kong.

If the prospective imported workers are Mainland residents, employers must recruit the imported workers through the foreign labour service co-operation enterprises approved by the relevant Mainland authorities.

In terms of accommodation, employers are allowed to

1. arrange for the imported labour accommodation in Hong Kong,
2. provide accommodation for the imported labour on the Mainland; or
3. let the imported labour reside in their residential premises on the Mainland.

Applications should be decided by the designated officers of the concerned bureaux/department(s) according to the specified approval parameters. The Labour Advisory Board (LAB) will also be engaged periodically on the implementation of the sector-specific labour importation schemes.

Highlights of the labour importation schemes for both sectors are as follows:

Construction sector

• Priority to public sector construction works which serve substantial public interests, and the public sector construction works are required to exceed a specified project value.
• Private sector construction works must have special needs, and the local supply of involving construction personnel of special disciplines is very limited.
• Applicants are also required to provide additional training places for local personnel in a number no less than 10% of the approved quota for importation to ensure the training and rights of local workers.
• Accommodation provided in Hong Kong for imported labour in construction sector should be at designated locations, including:
  • on-site accommodation in Hong Kong, or
  • centralised quarter(s) in Hong Kong.

Aviation industry

• Aviation-related companies with direct contractual relationship with the Airport Authority Hong Kong (AAHK).
• Day return for imported Mainland workers via Hong Kong-Zhuhai-Macao Bridge: daily cross-boundary transportation coordinated by AAHK, and the transportation expenses shall be borne by the imported laborers themselves.
• Employers participating in the sector-specific scheme for the aviation industry will be required to pay to AAHK an additional sum of HK$400 per month for each imported worker to alleviate the transportation fare burden on local frontline airport staff.
• An application is estimated to be completed within one month upon receipt.

Public light bus (PLB)/coach trade

• Quota: 1,700 (comprising 900 public light bus drivers and 800 coach drivers).
• The imported driver should hold a recognised non-local driving licence for one year or more. Imported drivers should attend and pass the driving test and pre-service courses, as well as receive practical driving training.
• The majority of the imported drivers are expected to reside on the Mainland, while other relevant PLB/coach operators will arrange accommodation for the imported drivers in the vicinity of their servicing areas.
• An application is estimated to be completed within one to two months upon receipt.

Enhanced Supplementary Labour Scheme (ESLS)

Apart from introducing the sector-specific labour importation schemes, the Government will also enhance the coverage and operation of the SLS, including:

• Suspending the general exclusion of the 26 job categories and unskilled/low-skilled posts from the SLS for two years, including sales, waiter/waitress, receptionist, cashier, clerical worker, telephone operator, warehouse keeper, delivery worker, etc.;
  • This implies for these 26 unskilled/low-skilled posts, employers are now allowed to import workers. Previously, employers may only "apply to import workers at technician level or below to fill vacancies which they have genuine difficulties in recruiting suitable staff locally" under the scheme.
• Enhancing dissemination of application information to employers, streamlining verification of application information and fine-tuning the workflow of consultation with the LAB.

The other key requirements of the SLS will remain unchanged, including that employers must undertake a four-week local recruitment exercise for each vacancy under application.

The Government will consult the LAB, the Legislative Council Panel on Manpower, and relevant sectors on the implementation aspects of the sector-specific labour importation schemes and the ESLS. The target is to launch the sector-specific labour importation schemes for the construction and transport sectors in July 2023, and commence the receipt and processing of applications by then.

"Regarding the timing, for the two sector-specific schemes, we look forward to receiving applications in July. So, in a few weeks' time. We hope to be able to complete processing of applications within about two months. That's our pledge," said Michael Wong, Deputy Financial Secretary, said at the press conference on Tuesday (13 June 2023).

"For the enhanced Supplementary Labour Scheme, because the number of job categories is more, we look forward to starting to receive applications within the third quarter. So, it’s before September. To be able to process the applications, the current timeline is about five months. We hope to be able to shorten it to around three months."

The spokesman reiterated that the Government will continue to adopt multipronged strategies to address the manpower shortage problem, including training and retraining, provision of appropriate employment support and driving technology adoption for productivity uplifting, etc. On the premise of ensuring employment priority for local employees, the Government will formulate appropriate measures having regard to the supply and demand of manpower.

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