Hong
Kong has the very antithesis of an over-regulated
inflexible labor market. Nonetheless
in the last 10 years a considerable
amount of labor legislation aimed at
improving the working conditions and
welfare of the workers has been passed.
The main labor ordinance is the Employment
Ordinance which sets out the conditions
of service in general employment and
which includes provisions for paid holiday
leave, sickness allowances and severance
pay.
There
is no legal minimum wage in Hong Kong.
Wages can be calculated by the hour,
day or month, or by piece rate.
The
Employment Ordinance sets minimum entitlements
for employees, such as statutory holidays,
sick and maternity leave, severance
and long-service payments.
It
is up to employers whether to provide
additional benefits, such as a Lunar
New Year bonus (normally equivalent
to one month's extra pay), medical allowances,
subsidised meals, good-attendance bonus,
paid holidays over and above statutory
public holidays, subsidised transport
to and from work, free or subsidised
accommodation.
The
Factories & Industrial Undertakings
Ordinance aims to strictly regulate
the employment practices of the "sweat
shop economy" with which the territory
has long been associated. Under the
provisions of the Employees Compensation
Ordinance injured workers can claim
compensation for work related injuries.
Most employment disputes come before
the labor tribunal whose proceedings
are conducted in Cantonese and are generally
very informal.
A survey in 2002 cast some doubt on
the competitiveness of the Hong Kong
labour force. Looking
primarily at the quality of labour within
the Asian region, the results of the
poll suggested that inadequate education
investment and rising labour costs have
meant that although salaries for white
collar workers and managerial staff
are higher, the quality of service provided
is not necessarily any greater than
that provided by labour in other Asian
countries.
The
survey showed that the jurisdiction
still excels in terms of language skills,
overall professionalism, and technical
expertise, but warned that on a comparative
'value for money' basis, the competitive
margin between Hong Kong and the Chinese
mainland is narrowing, and regional
rivals such as Singapore, Taiwan, and
India have overtaken the SAR.
The
labour market improved in the second
quarter 2007, with the seasonally adjusted
jobless rate edging down to 4.2%, the
lowest since mid-1998. Wages and earnings
continued to rise, while job vacancies
surged to a post-1997 high in March.
In
October, 2007, Hong Kong leader Donald
Tsang announced new plans designed to
ensure that Hong Kong's position as
a leading global finance hub is consolidated
and strengthened. He observed that China's
rapid development and the opening up
of its financial sector have presented
unprecedented opportunities for Hong
Kong's financial-services sector.
Tsang
added that with these large-scale development
projects, Hong Kong will need to expand
its pool of skilled workers, and will
"require talented people from everywhere".
Consequently, to help attract more qualified
people, the Quality Migrant Admission
Scheme's requirements will be relaxed
and widely promoted. Last year, 28,000
foreigners came to work in Hong Kong
and settled in the jurisdiction, including
about 5,500 from the Mainland.
