The Standard 14/2/2025

Summary:

Criticizing the government for permitting illegal taxi-hailing platforms to operate, the Hong Kong Tele-call Taxi Association demanded a clear timeline for legislative action to govern these activities within a week. A five-day citywide strike starting March 5 is threatened for government’s inactivity.

Commentary:

Hong Kong's existing laws have struggled to keep pace with technological advancements, leaving gaps that unlicensed services exploit. This has created an uneven playing field, where licensed taxi drivers feel threatened by competition that operates outside the law, while illegal private service providers find room to survive.

The number of taxi licenses in Hong Kong has long been limited to 18,000, total 18,163 now according to the Transport Department, which fails to meet the needs of residents and tourists. Under Road Traffic (Public Service Vehicles) Regulations (Cap. 374D) s14(2), private cars must hold a "Private Service Hire Car Permit" to become legal ride-hailing vehicles. However, the current cap on related licences is only 1,500, which is highly lacking.

The imbalance between market's supply and demand leads to poor taxi service quality. To meet societal requirements, one solution is to loosen regulations and allow more private automobiles to lawfully operate ride-hailing services with a licence.

Ultimately, increasing number of taxi licenses and legalise taxi-hailing platforms could enhance taxi service quality, increase taxi service provision, attract tourists, and ensuring that all operators adhere to the same standards. The challenge lies in balancing innovation with consumer protection and the economic viability of traditional taxi services.

Oriental Daily 16/2/2025

(Translation: "Industrial Accidents Surge in Hong Kong Despite Stricter Penalties"

Summary:

Industrial accidents are increasing, with over 200 fatal incidents and around 8,000 accidents annually. Despite the government's revision of the Occupational Safety and Health Ordinance (Cap. 509) to allow for significantly higher fines up to HKD 10 million, the average penalties remain low at HKD 8,311, from the previous average of HKD 7,942. There are calls for extending prosecution periods to improve evidence gathering.

Commentary:

Intent behind the 2023 Ordinance revision was to impose higher fines—up to HKD 10 million—for severe offenses (OSHO s. 6(3b)) to deter employers' negligence. However, the low average penalties shows disconnect between legislative intent and actual enforcement. The difficulty of translating punitive measures into real-world deterrents is reflected.

Calls for extending prosecution periods reflects need for robust enforcement mechanisms. Effective law enforcement requires not only clear legal standards but also the capacity to investigate and prosecute violations thoroughly. If the legal system cannot adequately gather evidence or if time constraints hinder this process, offenders may escape accountability, undermining the law's deterrent effect.

The construction sector's particular vulnerability to accidents as it often faces unique hazards, and it might not be addressed solely through increased fines. A more comprehensive approach is needed, like one that includes rigorous safety training, regular inspections, and proactive engagement with workers and unions to foster a culture of safety.

On.cc 18/2/2025

(Translation: "Minimum Wage Raised to HKD 42.1, effective May 1 After Legislative Council’s Approval")

Summary:

The government had accepted the recommendation of the Minimum Wage Commission to raise the statutory minimum wage (“SMW”)  from HKD 40 to HKD 42.1 per hour, which is a 5.25% increase. This is the first increase after a new formula for adjusting the rate was passed last year, considering various economic factors. Subject to Legco’s approval, the revised rate will come into effect on May 1.

Commentary:

The Labour Department's Minimum Wage Commission established Hong Kong's SMW, which is outlined in the Minimum Wage Ordinance (Cap. 608) and aims to safeguard low-wage workers while maintaining Hong Kong's competitiveness internationally. Employers who, without sufficient reason, fail to pay wages on time risk fines up to HKD 350,000 and three years of imprisonment. (s. 63C Employment Ordinance (Cap. 57)).

Higher wages may encourage more individuals to enter the workforce, particularly those previously discouraged by low pay, increase disposable income and consumption, and stimulate economic growth. Lowest-paying jobs like cleaner, postal worker, tailor etc. can be benefited most from the revision.

However, the overall impact depends on various factors, including how businesses respond to the wage hike. Small businesses may face challenges managing increased labour costs, which could affect employment levels. Additionally, while the average salary for part-time workers is HKD 56 per hour, the effect may be insignificant. Some may argue that SMW is still too low, and the wage growth is still lagging behind inflation. If inflation rises because of the wage increase, the benefits might be partially offset. Therefore, monitoring and revising SMW yearly concerning the new formula is important to reflect societal changes.

The Standard 26/2/2025

Summary:

Chief Executive John Lee Ka-chiu has initiated a rare year-long pay freeze affecting the executive authorities, legislature, judiciary, and District Council members in response to a significant fiscal deficit during the 2025 Budget Speech. 

Commentary:

This pay freeze sets a precedent for future governmental fiscal policies. However, it also opens the door to questions about the limits of executive power in managing public sector remuneration and the balance between fiscal responsibility and fair compensation for public servants. For civil servants, the Civil Service Regulations and the Pay Scales established under these regulations provide a framework within which salary adjustments can be made. The government may have the authority to freeze salaries in response to economic conditions.

The 2001 report on Review of Pay Policy and System emphasizes that salaries should be deemed fair and reasonable by civil servants and the public. Given the current fiscal realities, the government may have a legal obligation to revisit the remuneration framework to align with public expectations. The Hong Kong Research Association recently released a poll showing that 77% of respondents supported a pay freeze or pay cut for civil servants. The government may further consider pay cut.

On.cc 25/2/2025

(Translation: "Addressing Labor Shortages: Hong Kong Legislators Propose Increasing Foreign Worker Quotas and Increase Female Workers in Construction")

Summary:

The Hong Kong Government expected a labor shortage in the construction industry from 2023 to 2027, along with an aging workforce. Legislators pointed out that current quotas for foreign labour are not fully utilized and suggested hiring more female workers in the construction industry.

Commentary:

Instead of importing foreign labour at very high rates, the government should consider developing more training programs for domestic workers and cultivating local construction talents to fill the labour supply. Keeping goodies in the field, enhancing local labour’s skill level, increasing the employment rate, and stimulating Hong Kong’s economic development.

Although the construction industry is deemed to be a male-dominated sector because of its working nature and environment, female workers can still handle positions like electricians, painters, joineries, etc. Subsidies can be provided to companies to encourage them to hire more females.

To attract female workers, employers should ensure that workers are afforded equal opportunities and that workplaces are equipped with necessary facilities, such as female-only toilets, to accommodate their needs. Moreover, employers should ensure all workplace participants can work in a safe and sexually hostile-free environment according to the Sex Discrimination Ordinance (Cap. 480). If this could be done, gender equality in employment could be enhanced.

On.cc 25/2/2025

(Translation: "Proposed Amendments to Trade Unions Ordinance Raise Concerns Over National Security and Labour Rights")

Summary:

The Hong Kong government is proposing amendments to the Trade Unions Ordinance (Cap. 332) to (1) bar individuals convicted of national security offenses from holding positions in trade unions or initiating new registrations, (2) regulate trade unions can only accept foreign funds after approval from the Registry of Trade Unions.

Commentary:

This proposal reflects a growing trend toward prioritizing national security over individual rights. While the intent is to prevent potential misuse of trade unions for activities unrelated to labour rights, such restrictions raise concerns about the government’s infringement on freedom of association andfreedom to form and join trade unions, which are protected under local (Basic Law Article 27) and international human rights frameworks (Universal Declaration of Human Rights Article 20, International Covenant on Civil and Political Rights Article 22, International Labour Organization Conventions No. 87 and 98).

The government asserts that participation in international conferences does not equate to forming connections with foreign organizations. However, the vagueness of terms like "participation" and "connection" could lead to arbitrary interpretations that inhibit unions from participating in legitimate international dialogues, posing risks for legitimate unions to find themselves unjustly classified as political entities, thereby losing access to rights and resources. The requirement for prior approval to accept foreign funding may also deter unions from seeking necessary resources for their operations and limit their ability to engage globally.

Oriental Daily 3/3/2025

(Translation: “Workplace Sexual Harassment Out of Control: 60% of Women Do Not Seek Help”)

Summary:

A recent survey conducted by the Equal Opportunities Commission (“EOC”) revealed that over 30% of female employees experienced harassment in the past three years, including physical contact, texts, and verbal harassment. 60% of victims chose not to seek help, and even if they seek help, most are reluctant to publicize it. Only 45.2% of companies reported having a ‘harassment policy’.

Commentary:

Under the Sex Discrimination Ordinance (Cap. 480), employers should ensure all workplace participants can work in a safe and sexually hostile-free environment, sexual harassment in workplaces is unlawful (s. 23A(1)), in which many organizations failed.

Currently, individuals experiencing sexual harassment in Hong Kong can complain to the EOC, initiate civil action in District Courts, and report criminal cases to the police. This whistle-blowing system has several shortcomings, including employee’s lack of awareness about reporting channels, inadequate protections for whistle-blowers, and insufficient organizational reporting mechanisms. Many companies do not provide proper training on addressing sexual harassment, contributing to a culture of silence. Additionally, there is ineffective follow-up on complaints, leading to perceptions that issues are inadequately addressed.

To enhance the system, it is essential to educate employees about their rights and reporting options, strengthen legal protections for whistle-blowers, establish clear harassment policies, and require mandatory training on prevention. Legal enforcement should ensure that complaints are addressed adequately.

Oriental Daily 16/3/2025

(Translation: “Workers Rescued from Swaying Gondola Amid Hong Kong Storm Chaos; Safety Failures Concerned”)

Summary:

During severe thunderstorms and an Amber Rainstorm Warning, a suspended gondola at Tin Shui Wai was violently tossed by high winds, trapping workers in mid-air until firefighters rescued them.

Commentary:

Under s. 6(1) of the Occupational Safety and Health Ordinance (Cap. 509) and s. 6A(1) of the Factories and Industrial Undertakings Ordinance (Cap. 59), employers and contractors are legally obligated to ensure a safe working environment and protect employees from foreseeable risks, including suspending high-risk operations during weather warnings. The apparent negligence of site management in allowing workers to operate the suspended gondola, despite existing weather warnings, constitutes a breach of the duty of care owed to employees. An employer who fails to comply with the above can be fined for HK$3,000,000 on summary conviction and HK$10,000,000 on conviction on indictment. If he does so intentionally, knowingly or recklessly, he can be imprisoned for 6 months or 2 years respectively (OSHO s. 6(3), 6(4) and FIUO s. 6A(3), 6A(4)).

Additionally, non-compliance with the Construction Sites (Safety) Regulations (Cap. 59I), may trigger civil liability for injuries, risk assessments, and further investigations are needed.

Oriental Daily 15/3/2025

(Translation: “Wage Dispute Erupts at Hong Kong-Zhuhai-Macao Bridge Parking Lot; Workers Claim $7 Million in Unpaid Wages”)

Summary:

Approximately 100 workers reported being owed wages for 3 to 4 months, over HKD 7 million. This problem may be caused by the liquidation of the main contractor and opaque payroll amounts, the "big-and-small-pay" practice (大細糧).

Commentary:

Under the Employment Ordinance (Cap.57, s.23, s.25), employers must pay wages within 7 days of the due date, who wilfully and without reasonable excuse fail to pay are liable to a fine of $350,000 and imprisonment for 3 years (s.63C). Even if contractors enter liquidation, liabilities may extend to successor contractors. Workers’ unpaid wages are prioritized as preferential debts, granting them higher claim priority over unsecured creditors. Workers can seek compensation through the Protection of Wages on Insolvency Fund Board or civil claims via the Labour Tribunal.

The "big-and-small-pay" practice (大細糧), in which sub-contractors require workers to sign contracts that underreport wages, principal contractors pay wages partly ("small pay"), while sub-contractors pay the remaining balance ("big pay"). This structure violates workers’ rights, as sub-contractors often delay or default payments, leaving principal contractors to pay only the falsified lower amount. To eradicate it, employment contracts must be rigorously scrutinized.

Oriental Daily 19/3/2025

(Translation: “40% of Hong Kong Food Delivery Gig Workers Demand Equal Injury Compensation System as Employees; Labour Department Eyes Reforms”)

Summary:

A recent survey commissioned by the Labour Department reveals that approximately 40% of Hong Kong’s 12,900 food delivery platform workers desire legal protections equivalent to those provided to traditional employees, specifically regarding work injury compensation.

Commentary:

Under the Employees’ Compensation Ordinance (Cap.282 s.2), statutory injury benefits apply only to employees under traditional contracts, excluding gig workers classified as self-employed. Common food delivery platforms, such as Deliveroo, and Foodpanda, require deliverymen to sign an “Independent Contractor (Self-employed) Agreement” before working, stating that workers are not employees. Traditional employees receive injury compensation according to the ECO with no upper limit on the total amount. However, deliverymen can only file claims through accident insurance, with an upper limit. ECO also provides more extensive compensation than accident insurance, including compensation for permanent total incapacity (s.7), and medical expenses (s.10A).

As the gig economy expands, jurisdictions must reconsider existing laws to protect workers, ensure fair treatment, and promote a safer working environment. Potential reforms could include legislative amendments to extend coverage or mandate platform-funded insurance schemes. However, comprehensive legislative overhauls could be time-consuming, or they may face opposition from gig economy platforms.

The Standard 26/3/2025

Summary:

Psychiatrist emphasized that many employees with mental health conditions avoid requesting sick leave due to fear of workplace discrimination, exacerbated by stigma and misconceptions. Post-pandemic economic strains and workplace stressors, such as heavy workloads, long hours, and office conflicts drive rising mental health concerns.

Commentary:

Research from AXA finds that 77% of employees have experienced at least one mental health issue stemming from their jobs. Currently, the Disability Discrimination Ordinance (Cap.487) protects workers with mental illnesses (s.2a, disability includes total or partial loss of the person’s mental functions). While the law mandates reasonable accommodations and prohibits bias, cultural stigma and fear of retaliation deter employees from seeking help or disclosing conditions, weakening legal safeguards. Employers’ failure to foster stigma-free environments may contravene their duty of care under occupational safety laws. Additionally, the government’s under-resourcing of mental health services risks violating international obligations under the Convention on the Rights of Persons with Disabilities. Legal reforms should prioritize anti-stigma campaigns, stricter enforcement of workplace protections, and increased funding for mental health infrastructure to align policy with societal needs. The call for enhanced public education and resources is crucial not only for individual well-being but also for promoting a healthier, more productive workforce, ultimately benefiting both employees and employers.