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Hong Kong SAR - Compensation & Benefit Legislation

HONG KONG SAR – SPECIAL NOTE

Hong Kong reverted from British to Chinese sovereignty on July 1, 1997 (the handover). As a Special Administrative Region (SAR) of the People's Republic of China (PRC), Hong Kong enjoys a high degree of autonomy except in defense and foreign affairs and remains a free society with legally protected rights.

 

CLIMATE

Tropical monsoon; cool and humid in winter, hot and rainy from spring through summer, warm and sunny in fall.

 

LANGUAGES

Chinese (Cantonese), English; both are official.

 

LEGAL SYSTEM

Hong Kong’s legal system is based on English common law.

 

CURRENCY

Hong Kong Dollar (1 USD = 7.7999 HKD as of April 15, 2002).

 

HONG KONG SAR - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

HONG KONG SAR - EMBASSY/CONSULATES

U.S. Consulate General - Hong Kong

26 Garden Road

Hong Kong

Telephone: (852) 2523-9011

Fax: (852) 2845-1598

 

HONG KONG SAR - HOLIDAYS

 

HONG KONG SAR - MINIMUM AGE

The Employment of Children Regulations prohibit employment of children under the age of 15 in any industrial establishment.

 

Children 13 and 14 years of age may be employed in certain nonindustrial establishments, subject to conditions aimed at ensuring a minimum of 9 years' education and protecting their safety, health, and welfare.

 

(Section 6.d. Acceptable Conditions of Work, Hong Kong – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

HONG KONG SAR - MINIMUM REMUNERATION

The minimum wage for foreign domestic workers is HK$3,670 per month (approximately $470). The law requires employers to provide foreign domestic workers with housing, worker's compensation insurance, travel allowances, and food or a food allowance in addition to the minimum wage, which together provide a decent standard of living.

 

(Section 6.e. Acceptable Conditions of Work, Hong Kong – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

HONG KONG SAR - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

HONG KONG SAR - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The law provides for the right of association and the right of workers to establish and join organizations of their own choosing. Trade unions must be registered under the Trade Unions Ordinance. The basic precondition for registration is a minimum of seven persons who serve in the same occupation. The Government does not discourage or impede the formation of unions. In 2000, 18 unions (comprising 17 employee unions and one mixed organization of employees and employers) were registered under the Trade Unions Ordinance. Through the first 10 months of the year, 14 new unions (all employee unions) were registered. As of the end of October, the total number of registered trade unions was 649 (605 employee, 25 employer, and 19 mixed). Over 22 percent of the approximately 3.3 million salaried employees and wage earners belong to a labor organization. Trade unions are independent of political parties and the Government.

 

Work stoppages and strikes are permitted. However, there are some restrictions on this right for civil servants. During the year there was one strike, which resulted in 780 lost workdays. There were 5 strikes during 2000, which resulted in 934 lost workdays; in 1999 there were 3 strikes. Although there is no legislative prohibition of strikes, in practice, most workers must sign employment contracts that typically state that walking off the job is a breach of contract which can lead to summary dismissal.

 

The Employment Ordinance includes provisions that protect against antiunion discrimination. Violation of the antiunion discrimination provisions is a criminal offense with a maximum fine of $12,800 (HK$100,000). Employees who allege such discrimination have the right to have their cases heard by the Labor Relations Tribunal. The Tribunal may order reinstatement of the employee, subject to mutual consent of the employer and employee. If no such order is made, the Tribunal may award statutory entitlements (severance pay, etc.) and compensation. The maximum amount of compensation is $20,000 (HK$156,000). However, labor activists complain that complainants are discouraged by the Labor Relations Tribunal's tendency to push conciliation rather than issue orders. In 2000 the Labor Relations Division of the Labor Department handled 6 complaints of antiunion discrimination. During the first 10 months of the year, there were 5 such complaints. Owing to insufficient evidence or unwillingness of employees to act as prosecution witnesses, no prosecution action has been taken against the employers concerned.

 

The Basic Law commits the SAR to 40 International Labor Organization (ILO) conventions, and the Government has amended labor legislation and taken administrative measures to comply (see Section 6.b.).

 

The Employment and Labor Relations (Miscellaneous Amendments) Ordinance permits the cross-industry affiliation of labor union federations and confederations and allows free association with overseas trade unions (although notification of the Labor Department within 1 month of affiliation is required).

 

b. The Right to Organize and Bargain Collectively

 

In June 1997, the prehandover Legislative Council passed three laws that greatly expanded the collective bargaining powers of workers, protected them from summary dismissal for union activity, and permitted union activity on company premises and time. The new ordinances would have enabled full implementation of ILO Conventions 87, 98, and 154. However, in October 1997, after consultation with the Labor Advisory Board, the Provisional Legislature repealed the Employee's Right to Representation, Consultation, and Collective Bargaining Ordinance and the Employment (Amendment) Ordinance, and amended the Trade Union (Amendment) Ordinance. The repeals removed the new legislation's statutory protection against summary dismissal for union activity; the Government argued that existing law already offered adequate protection against unfair dismissal arising from antiunion discrimination. In August, the U.N. Committee on Economic, Social and Cultural Rights expressed concern over the absence of protection against unfair dismissal.

 

The Employment and Labor Relations (Miscellaneous Amendments) Ordinance removed the legal stipulation of trade unions' right to engage employers in collective bargaining; bans the use of union funds for political purposes; requires the Chief Executive's approval before unions can contribute funds to any trade union outside of the SAR; and restricts the appointment of persons from outside the enterprise or sector to union executive committees. Because of this law, the Hong Kong Confederation of Trade Unions promptly filed a complaint against the Hong Kong Government for violation of ILO Conventions 87, 98, and 154. In November 1999, the ILO Committee on Freedom of Association concluded that the Employment and Labor Relations (Miscellaneous Amendments) Ordinance breached conventions 87 and 98 and recommended that the Government take legislative action to remedy the situation. The Government provided the ILO progress reports in May 1999 and January 2000 asserting that it was in compliance with all of the 40 ILO conventions that apply to Hong Kong. In January 1999, the Government blocked a legislator's attempt to introduce two bills on collective bargaining and antiunion discrimination on the grounds that they would affect government spending and operations and therefore fell outside the scope allowed for private member bills under the Basic Law. With the repeal of the short-lived collective bargaining legislation, the prehandover framework continued. There were no laws that stipulated collective bargaining on a mandatory basis. Wage rates in a few trades like tailoring and carpentry were determined collectively in accordance with established trade practices and customs rather than as a statutory mechanism. Collective bargaining is not practiced widely. Unions generally are not powerful enough to force management to engage in collective bargaining. The Government does not encourage it, since the Government itself does not engage in collective bargaining with civil servants' unions but merely "consults" with them.

 

The Labor Relations Division of the Department of Labor offers free, nonbinding conciliation services to employers and employees involved in disputes that may involve statutory benefits and protection in employment as well as arrears of wages, wages instead of notice, or severance pay. The Department of Labor takes a positive attitude towards the participation of trade unions in such dispute negotiations. In the first 10 months of the year, the Division handled 26,238 claims, 64 percent of which were handled through conciliation. These figures are roughly consistent with prior years. Depending on the size of the claim, the remaining cases were referred to the Labour Tribunal or the Minor Employment Claims Adjudication Board.

 

There are no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The law prohibits forced or compulsory labor; however, trafficking in persons for the purpose of prostitution reportedly occurs. There were credible reports that local, foreign, and mainland Chinese sex workers sometimes worked for organized criminals in exchange for protection or other assistance under conditions resembling indentured servitude (see Section 6.f.).

 

The law does not specifically prohibit forced or bonded labor by children; however, there were no reports that such practices occur.

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The Employment of Children Regulations prohibit employment of children under the age of 15 in any industrial establishment. Children 13 and 14 years of age may be employed in certain nonindustrial establishments, subject to conditions aimed at ensuring a minimum of 9 years' education and protecting their safety, health, and welfare. To enforce compliance with the regulations, the Labor Department conducts regular workplace inspections. In the first 10 months of the year, the Labor Department conducted 137,274 inspections, during which 6 violations of the Employment of Children Regulations were discovered. The Department issued three summonses, all of which resulted in convictions and fines. In 2000 the Labor Department conducted 161,454 inspections, during which 8 violations were discovered and 5 summonses issued, 3 of which resulted in convictions and fines. Work hours for young persons 15 to 17 years of age in the manufacturing sector remain limited to 8 hours per day and 48 hours per week between 6 a.m. and 11 p.m. Overtime is prohibited for all persons under the age of 18 in industrial establishments. Employment in dangerous trades is prohibited for youths, except for 16- and 17-year-old males.

 

While the law does not specifically prohibit forced or bonded labor by children, such practices are not known to occur (see Section 6.c.). ILO Convention 182 on the worst forms of child labor does not apply to Hong Kong.

 

e. Acceptable Conditions of Work

 

There is no statutory minimum wage except for foreign domestic workers. Aside from a small number of trades where a uniform wage structure exists, wage levels customarily are fixed by individual agreement between employer and employee and are determined by supply and demand. Some employers provide workers with various kinds of allowances, free medical treatment, and free subsidized transport. The average wage generally provides a decent standard of living for a worker and family. Two-income households are the norm. In August the U.N. Committee on Economic, Social and Cultural Rights expressed concern over the lack of adequate regulation on statutory minimum wage, working hours, paid weekly rest, rest breaks and compulsory overtime.

 

The Factory Inspectorate Division has been restructured to strengthen its safety and health promotion and enforcement program. The division--part of a new occupational safety and health branch of the Labor Department--consists of four units: an operations division covering field services such as safety and health advice; a support services division responsible for technical support services; a planning and training division; and a legal services division charged with processing and conducting prosecutions.

 

The Factories and Industrial Undertakings Ordinance and its 27 sets of subsidiary regulations regulate safety and health conditions. In the first 9 months of the year, the Labor Department conducted 95,386 inspections of industrial and nonindustrial workplaces and issued 2,135 summonses (1,701 of which resulted in convictions with a total of $2.8 million (HK$22 million) in fines). In 2000 the Labor Department conducted 131,455 inspections and issued 3,719 summonses (3,455 of which resulted in convictions with a total of $5.8 million (HK$45.5 million) in fines). Worker safety and health has improved over the years, due in part to the transfer of many manufacturing jobs to factories in mainland China, but serious problems remain, particularly in the construction industry. In the first half of the year, there were 26,288 occupational accidents, of which 14,244 were classified as industrial accidents. Of the industrial accidents, 11 involved fatalities. In 2000 there were 58,092 occupational accidents, of which 33,652 were classified as industrial accidents, 43 of which involved fatalities. Employers are required under the Employee's Compensation Ordinance to report any injuries sustained by their employees in work-related accidents. There is no specific legal provision allowing workers to remove themselves from dangerous work situations without jeopardy to continued employment.

 

The minimum wage for foreign domestic workers is approximately $470 (HK$3,670) per month. The law requires employers to provide foreign domestic workers with housing, worker's compensation insurance, travel allowances, and food or a food allowance in addition to the minimum wage, which together provide a decent standard of living. However, foreign domestic workers are subject to deportation if they are dismissed. They are thus less likely to raise formal complaints, and there have been credible reports of their illegally being forced to accept less than the minimum wage and unacceptable living conditions. There also have been a number of cases of foreign domestic workers successfully taking their employers to court for mistreatment. The standard workweek is 48 hours, but many domestic workers work far longer hours.

 

f. Trafficking in Persons

 

There is no specific law prohibiting trafficking in persons; however, there are various laws and ordinances that allow law enforcement authorities to take action against traffickers. Trafficking in persons is a problem and Hong Kong is both a transit and a destination point for trafficked persons.

 

 

HONG KONG SAR - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

HONG KONG SAR - STANDARD WORKWEEK

The standard workweek is 48 hours, but many domestic workers work far longer hours.

 

(Section 6.e. Acceptable Conditions of Work, Hong Kong – Report of Human Rights Practices, 2001, U.S. Department of State.)