Chapter 1 Highlights of Year 2018

1.1	In 2018, the labour market tightened further on the back of above-trend economic growth. The unemployment and underemployment rates averaged at 2.8% and 1.1% respectively for the year as a whole, both being the lowest in more than 20 years. The labour force and total employment expanded further in the year, with the latter reaching 3 867 000. We will continue to closely monitor the labour market situation and enhance our employment services on all fronts, especially in netting suitable vacancies from the market and rendering assistance to job seekers.
Employment Services Employment and Recruitment Services
1.2	To help job seekers enter the labour market and respond speedily to the recruitment needs of employers, the Labour Department (LD) organises employment promotion activities at various locations across the territory. A total of 19 large-scale job fairs and 958 district-based job fairs were organised in the year.
Large-scale job fairs of the Labour Department well received by job seekers
1.3	The LD adopts a proactive approach in providing employment assistance. For example, in major business closure or redundancy cases, we set up enquiry hotlines and special counters at our job centres to provide special employment services to affected employees. In the year, the free recruitment service provided for employers by the LD recorded a historic high of 1 471 251 vacancies from the private and public sectors; and 136 079 placements were secured.
Strengthening Employment Programmes for Job Seekers with Special Needs
1.4	To encourage employers to hire job seekers with special employment needs, the LD enhanced its employment programmes in September 2018 by:
	•	providing an on-the-job training allowance of up to $4,000 per month for a period of six to 12 months for employers engaging people aged 60 or above who are unemployed or have left the workforce;
	•	raising the monthly on-the-job training allowance ceiling under the Youth Employment and Training Programme by $1,000 to $4,000 per month for a period of six to 12 months; and
	•	extending the work adaptation period under the Work Orientation and Placement Scheme from two months to three months and increasing the maximum amount of allowance payable to employers engaging people with disabilities by $16,000 to $51,000.
Broadening Horizons of our Youths
1.5	The LD continued to expand the Working Holiday Scheme (WHS) network. In April 2018, a new WHS was established between Hong Kong and the Netherlands for commencement in January 2019. Besides, the WHS with Hungary commenced in September 2018.
Labour Relations Promoting Harmonious Labour Relations
1.6	To foster harmonious labour relations, the LD continued to adopt a proactive and pragmatic approach in helping employers and employees resolve their disagreements through communication, mutual understanding and flexible adjustments. In 2018, we handled a total of 90 labour disputes and 13 691 claims. Over 70% of cases with conciliation service rendered were resolved. The average waiting time for conciliation meetings was 2.4 weeks in the year. Besides, the number of working days lost in Hong Kong as a result of strike remained among the lowest in the world.
Stepping up Enforcement against Wage Offences
1.7	In 2018, the LD sustained its all-out efforts to combat wage offences, including breaches of the Statutory Minimum Wage provisions. Territory-wide inspection campaigns targeted at offence-prone trades were launched by labour inspectors. Apart from proactive inspections to check compliance, we widely publicised our complaint hotline (2815 2200) and collected intelligence on non-payment of wages in various industries through an early warning system in collaboration with trade unions. We conducted prompt investigation into suspected wage offences and employed veteran ex-police officers to strengthen the investigative work and collection of evidence so as to facilitate speedy prosecution.
1.8	We continued to step up the prosecution against employers and responsible individuals of companies for wage offences. We also strengthened our educational and promotional efforts to remind employers of their statutory obligation to pay wages on time and to encourage employees to lodge claims promptly and come forward as prosecution witnesses.
1.9	Since the implementation of the Employment (Amendment) Ordinance 2010 from October 2010, employers who wilfully and without reasonable excuse defaulted awards for wages or some other entitlements made by the Labour Tribunal or the Minor Employment Claims Adjudication Board have become liable to criminal prosecution. This has further strengthened the deterrent against law-defying employers.
Enhancing Good Human Resource Management Practices and Harmonious Labour Relations
1.10	The LD organised a wide range of promotional activities including exhibitions, seminars and talks to promote public understanding of labour laws and publicise “employee-oriented” good human resource management measures. In 2018, a series of seminars were conducted for human resources managers and corporate executives, including the promotion of effective workplace communication. We also staged the Good Employer Charter Ceremony in September to further encourage more employers in different industries to adopt good human resource management, including the implementation of family-friendly employment practices in the workplace.
Good Employer Charter Ceremony
Abolition of the “Offsetting” under the Mandatory Provident Fund (MPF) System
1.11	The Chief Executive announced in the 2018 Policy Address the enhanced arrangements for abolishing the “offsetting” of the severance payment (SP) and the long service payment (LSP) with the accrued benefits of employers’ mandatory contributions under the MPF System. The enhanced arrangements included, for example, assisting employers in setting up their designated saving accounts to save up in advance to prepare for their potential SP/LSP liabilities, significantly increasing the Government’s financial commitment to $29.3 billion and extending the period of the second-tier government subsidy to 25 years. The LD had embarked on the preparatory work for the abolition of the “offsetting”, working on the implementation details in collaboration with relevant bureaux and departments as well as other stakeholders. The Government planned to introduce the enabling bill into the Legislative Council by 2020.
Employees’ Rights and Benefits Statutory Minimum Wage (SMW)
1.12	In 2018, the LD organised various publicity activities to promote the Minimum Wage Ordinance (MWO). To safeguard employees’ entitlement to the SMW, we also conducted proactive workplace inspections of establishments in various trades and mounted targeted enforcement campaigns in low-paying sectors. Overall, the implementation of the SMW was smooth and the employment market remained stable. The earnings of low-income employees continued to improve.
1.13	The Minimum Wage Commission (MWC) is an independent statutory body established under the MWO with the main function of reporting to the Chief Executive in Council its recommendation about the SMW rate at least once in every two years. The MWC comprises a Chairperson and 12 Members drawn from the labour sector, business community, academia and Government. In October 2018, the MWC submitted its report after completing a new round of review of the SMW rate and recommended raising the SMW rate from $34.5 per hour to $37.5 per hour.
Safeguarding the Rights of Employees of Government Service Contractors
1.14	To protect the employment rights and benefits of non-skilled workers employed by government service contractors, we conduct inspections of their workplaces to check employers’ compliance with statutory and contractual requirements. With the concerted efforts of the LD and procuring departments in stepping up monitoring and enforcement, the situation of contractors abiding by the labour laws had improved.
Protection of Wages on Insolvency Fund
1.15	The Protection of Wages on Insolvency Fund provides assistance in the form of ex gratia payment to eligible employees affected by insolvency of their employers. The LD continued its efforts in clamping down at source on employers evading their wage liabilities, thus preventing wage defaults from developing into claims on the fund.
Vigorous Enforcement against Illegal Employment
1.16	The LD collaborated with the Police and the Immigration Department to combat illegal employment activities. A total of 164 joint operations were mounted in the year.
Working Hours Policy
1.17	In the absence of broad-based support, the Government decided not to pursue for the time being the legislative proposals on “contractual working hours” and “mandatory overtime compensation” as recommended by the Standard Working Hours Committee in 2017, and to focus on formulating working hours guidelines for 11 specified industries through the industry-based tripartite committees of the LD. The guidelines will consist of suggested working hours arrangements, overtime compensation arrangements and good working hours management measures for employers’ reference and adoption.
Safety and Health at Work Safety of Major Works Projects (MWPs) and Mega Infrastructure Projects (MIPs)
1.18	In light of the commencement of the MWPs and the MIPs, the LD established dedicated teams to monitor the safety performance of their workplaces. Besides, we continued to urge contractors to enhance construction site safety through stepping up inspection and enforcement, as well as promotion and education. These included conducting in-depth surprise inspections of the MWP/MIP sites with poor safety performance to scrutinise the safe system of work and safety management system of duty holders. We also stepped up participation in site safety management committee meetings of public work projects to get appraised of the projects’ occupational safety and health (OSH) conditions and risks, with a view to devising more focused inspection strategies accordingly. During the meetings, we gave advice on work processes of higher risk and urged the contractors and relevant duty holders to conduct risk assessments, devise safe working procedures and adopt adequate safety measures with respect to the high-risk processes as early as possible. We also strengthened the coordination with the Development Bureau, works departments and other public works project clients to enhance the MWP site safety measures, with a view to ensuring more effective control of risks by contractors. We also launched enforcement operations with the Marine Department on sea-based construction works to deter work practices contravening safety requirements.
Safety of Repair, Maintenance, Alteration and Addition (RMAA) Works
1.19	The volume of the RMAA works is expected to grow further with the continuous ageing of buildings in Hong Kong and the implementation of mandatory requirements for inspection of buildings and windows by the Government.
1.20	In light of serious accidents that happened from time to time in the RMAA works in recent years, the LD continued to step up inspection and enforcement efforts to deter contractors from adopting unsafe work practices, so as to enhance the occupational safety condition of the RMAA works. Territory-wide special enforcement operations on the RMAA works with emphasis on high risk processes, such as work-at-height; truss-out scaffolding works; lifting operations; lift installation, repair and maintenance works; electrical work, etc. were also launched. During the special operations, 329 suspension/improvement notices were issued and 189 prosecutions were taken out.
1.21	On the fronts of education and promotion, we organised a series of intensive promotion and publicity campaigns, targeting the RMAA works, as well as the related work-at-height and electrical work to arouse the safety awareness of all parties involved. These included launching a two-year publicity campaign in 2018 in collaboration with the Occupational Safety and Health Council (OSHC) with a wide range of initiatives seeking to reach contractors and workers engaged in the RMAA works more effectively and to impress upon them the importance of work safety. We also partnered with the Home Affairs Department and the property management sector to organise publicity and promotional activities to promulgate work safety at the district level.
1.22	In 2018, the LD organised in collaboration with the OSHC a series of safety seminars concerning the RMAA works and work-at-height to engage industry stakeholders in exploring means to further enhance construction safety.
1.23	To encourage the contractors of the RMAA industry to use suitable working platforms for work-above-ground, the LD in collaboration with the OSHC and the Hong Kong Association of Property Management Companies launched the “Pilot Partnership Scheme on Promotion of Light-duty Working Platforms by Property Management Companies” in January 2018. Suitable step platforms and hop-up platforms (light-duty working platforms) were provided free of charge to property management companies that successfully applied for the scheme for lending to contractors/workers in properties under their management.
Safety Award Schemes
1.24	Two safety award schemes were organised for the catering and construction industries to inculcate a work safety culture and to enhance the safety awareness of employers, employees and their families. The schemes featured a variety of activities which included organising safety performance competitions, roving exhibitions, safety quizzes and award presentation ceremonies cum fun days, conducting site visits, producing radio programmes and DVD-ROMs, as well as broadcasting Announcements in the Public Interest (APIs) and promotional films on television/radio and public transport.
Encouraging and Facilitating the OSH Complaints
1.25	In order to facilitate employees and members of public to lodge complaints against OSH malpractice more expeditiously and conveniently, the LD developed an on-line platform in 2018 to facilitate complainants to lodge complaints through mobile electronic devices. We will, having regard to their nature and content, arrange inspections of the workplaces concerned as soon as practicable for targeted investigations and follow-up actions with a view to preventing occurrence of accidents. We also commenced the production of a set of new TV and Radio APIs for publicising the new platform.
1.26	Besides, the LD distributed a newly produced poster and plastic card holders printed with the complaint hotline to encourage employees and members of the public to lodge complaints in 2018. Apart from Chinese and English, six ethnic minority languages (Indonesian, Hindi, Nepali, Tagalog, Thai and Urdu) were also included on the poster and plastic card holders to get across to ethnic minority workers.
Work-at-Height Safety
1.27	The LD launched a new TV and Radio APIs on work-at-height safety in March 2018 to continue to enhance the safety awareness of employers and employees.
1.28	The LD issued an “Overview of Work-at-Height Safety” in March 2018. The Overview consolidated safety information on work-at-height/work-above-ground safety. It assisted duty holders to better comprehend the risks and safety measures to be taken to prevent employees falling from height while at work.
“Work Safety Alert” Animation
1.29	The LD continued to produce “Work Safety Alert” in the form of animation videos to enable the industry to better comprehend how some accidents happened and the necessary preventive measures to be taken to prevent recurrence of such accidents. Four animation videos were produced, and uploaded to the LD website and disseminated through various channels in 2018.
Continuous Refinement of Mandatory Safety Training Courses (MST)
1.30	The LD continued to refine the recognition and monitoring of the MST courses. In 2018, we launched the revamped “Construction Green Card Course” to better meet the actual needs of construction workers and continued with our effort to standardise and refine the course contents of other MST courses. We continued to conduct different modes of monitoring inspections to enhance the monitoring of training course providers.
Reducing Health Risks Associated with Standing at Work
1.31	In December 2018, the LD issued a new guideline providing practical preventive measures on reducing health risks associated with standing at work and recommendations on service counter design in light of the fact that many employees in the retail, catering, security and other service industries often stand at work.
Strengthening the Rehabilitation Services for Employees Injured at Work
1.32	The LD recognises the importance of rehabilitation services in facilitating the recovery and early return to work of employees injured at work. In 2018, the LD has started to look into a feasible way forward, with a view to providing timely and coordinated treatment and rehabilitation services to injured employees in need as well as speeding up and enhancing the effectiveness of rehabilitation, thus facilitating their early recovery and return to work.
Strengthening Local and International Partnerships Labour Day Reception
1.33	On 27 April 2018, the Secretary for Labour and Welfare, Law Chi Kwong, hosted a reception at the Hong Kong Convention and Exhibition Centre to pay tribute to the workforce. The Chief Executive, Carrie Lam Cheng Yuet Ngor, officiated at the reception, with guests from trade unions, employers’ associations and other organisations attending.
Chief Executive, Carrie Lam Cheng Yuet Ngor (centre), officiating at the Labour Day Reception
Contacts with Other Labour Administrations
1.34	The LD maintained active liaison and interflows with other labour administrations through visits and participation in various activities in 2018.
1.35	For example, a delegation led by the Commissioner for Labour, Carlson Chan Ka Shun, visited the Ministry of Human Resources and Social Security (MoHRSS) of the State Council and met with Vice Minister Tang Tao in Beijing in January under the Reciprocal Visit Programme. The delegation also met with senior representatives of the State Administration of Work Safety, the All-China Federation of Trade Unions, the China Enterprise Confederation and the International Labour Organisation Country Office for China and Mongolia to exchange views on labour and work safety issues.
Commissioner for Labour, Carlson Chan Ka Shun (centre), leading a delegation to Beijing under the Reciprocal Visit Programme
1.36	In May, Deputy Director General Yin Jiankun, Department of Employment Promotion, the MoHRSS, led a delegation to visit Hong Kong under the Reciprocal Visit Programme. The delegation exchanged views on labour issues with the Commissioner for Labour, Carlson Chan Ka Shun, and the LD officers.
Commissioner for Labour, Carlson Chan Ka Shun (centre), meeting Deputy Director-General Yin Jiankun, Department of Employment Promotion, Ministry of Human Resources and Social Security (3rd from left) and the delegation
1.37	In June, a tripartite team comprising the Government, employer and employee representatives, led by the Commissioner for Labour, Carlson Chan Ka Shun, attended the 107th Session of the International Labour Conference in Geneva, Switzerland as part of the delegation of the People’s Republic of China. Moreover, Director of the International Labour Organisation Country Office for China and Mongolia, Ms Claire Courteille-Mulder, visited Hong Kong and met with the senior officials of the LD, sharing with us the latest development of international labour affairs.
Commissioner for Labour, Carlson Chan Ka Shun (5th from right), and members of the tripartite team attending the 107th Session of the International Labour Conference in Geneva, Switzerland