Chapter 1 Highlights of Year 2023

1.1 The labour market improved gradually in 2023 along with the local economic recovery. The seasonally adjusted unemployment rate declined from 3.5% in the fourth quarter of 2022 to 2.8% and 2.9% in the third and fourth quarters of 2023 respectively. The underemployment rate declined from 1.5% in the fourth quarter of 2022 to 1.0% in both the third and fourth quarters of 2023. For 2023 as a whole, the unemployment rate was 2.9%, 1.4 percentage points lower than that in 2022, and the underemployment rate also fell by 1.2 percentage points to 1.1%. We will continue to closely monitor the labour market situation and enhance our employment services on all fronts, especially in canvassing job vacancies 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 17 large-scale job fairs and 942 district-based job fairs were organised in the year.

1.3 The LD adopts a proactive approach in providing employment assistance. In the year, the free recruitment service provided for employers by the LD recorded 1 174 702 job vacancies from the private and public sectors; and 153 488 placements were secured.

Enhanced Supplementary Labour Scheme

1.4 To alleviate the manpower shortage across different sectors, the LD launched the Enhanced Supplementary Labour Scheme (ESLS) on 4 September 2023 to enhance the coverage and operation of the Supplementary Labour Scheme, including suspending the general exclusion of 26 job categories as well as unskilled or low-skilled posts from labour importation for two years.

Greater Bay Area Youth Employment Scheme

1.5 The LD launched the regularised Greater Bay Area Youth Employment Scheme (GBA YES) in March 2023 to encourage enterprises to employ Hong Kong young people to work in the GBA Mainland cities, so as to foster their career development and the exchange of talents in GBA.

Labour Relations

Promoting Harmonious Labour Relations

1.6 To foster harmonious labour relations, the LD adopts a proactive and pragmatic approach in helping employers and employees resolve their disagreements through communication and mutual understanding. In 2023, we handled a total of 65 labour disputes (each involving more than 20 employees) and 12 163 claims (each involving 20 or less employees). Over 70% of cases with conciliation service rendered were resolved. The average waiting time for conciliation meetings was 3.4 weeks in the year.

Enhancing Good Human Resource Management Practices and Harmonious Labour Relations

1.7 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 and good human resource management measures. In 2023, we continued the promotion of labour-management collaboration to encourage both sides to exchange views and enhance mutual understanding on labour issues of common concern.

Employees' Rights and Benefits

Statutory Minimum Wage (SMW)

1.8 The Minimum Wage Commission (MWC), established under the Minimum Wage Ordinance, is tasked with the main function of reporting to the Chief Executive (CE) in Council its recommendation about the SMW rate. The MWC comprises a chairperson and 12 members drawn from the labour sector, business sector, academia and the Government. The SMW rate was uprated to $40 per hour effective from 1 May 2023.

1.9 In January 2023, the CE invited the MWC to conduct a study on enhancing the review mechanism of the SMW. The MWC submitted the study report to the Government in October 2023. The Government would examine and consider the recommendations made by the MWC, and decide on the way forward for the review mechanism.

Sustaining Vigorous Enforcement against Wage Offences

1.10In 2023, the LD sustained its all-out efforts to combat wage offences. 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 so as to facilitate speedy prosecution.

1.11We continued to take out 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.

Vigorous Enforcement against Illegal Employment

1.12The LD collaborated with the Police and the Immigration Department to combat illegal employment activities. A total of 40 joint operations were mounted in the year.

Abolition of the MPF Offsetting Arrangement

1.13The Government announced that the abolition of the arrangement of employers using the accrued benefits of their mandatory contributions under the Mandatory Provident Fund System to offset their employees' severance payment (SP) and long service payment (LSP) would be implemented on 1 May 2025. A 25-year government subsidy scheme would be introduced to assist employers to adapt to the policy change.

Safety and Health at Work

Major Public Works Projects (PWPs)

1.14In light of the commencement of major PWPs (including major infrastructure projects), the LD continued to urge contractors to enhance construction site safety through stepping up inspection and enforcement, as well as promotion and education. These included conducting comprehensive and in-depth surprise inspections of major PWP sites with high risk processes or poor safety performance to scrutinise the safe system of work and safety management system of duty holders. We also continued to participate actively in site safety management committee meetings of major PWPs to more effectively and efficiently keep close tabs on the projects' occupational safety and health (OSH) conditions and risks, to offer OSH advice on work processes of higher risk and to urge the contractors and relevant duty holders to conduct risk assessments, devise safe working method statements and implement safety measures as early as possible. We also strengthened the coordination with the Development Bureau, works departments and other public works project clients to enhance the site safety measures of major PWPs, 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 from contravening safety requirements.

Renovation, Maintenance, Alteration and Addition (RMAA) Works

1.15The volume of RMAA works is expected to grow further with the continuous ageing of buildings in Hong Kong and the erection of many new buildings.

1.16The LD continued to step up inspection and enforcement efforts to monitor RMAA works and deter contractors from adopting unsafe work practices, so as to enhance the occupational safety condition of RMAA works. Territory-wide special enforcement operations (SEO) on RMAA works with emphasis on high risk processes, such as work-at-height, truss-out scaffolding works, lifting operations and electrical work were also launched. During the SEOs of 2023, 360 suspension/improvement notices were issued and 194 prosecutions were taken out. The LD has also stepped up area patrols to combat high-risk work processes of RMAA works, including unsafe work-above-ground activities and improper erection, dismantling or use of truss-out scaffolds.

1.17On the fronts of education and promotion, we organised a series of intensive promotion and publicity campaigns, targeting RMAA works, as well as the related work-at-height and truss-out scaffolding works to strengthen the safety awareness of all parties involved. These included implementing a two-year publicity campaign in collaboration with the Occupational Safety and Health Council (OSHC) with a wide range of initiatives to impress upon different stakeholders, such as contractors and workers engaged in RMAA works as well as property owners, the importance of work safety more effectively. We also partnered with the Home Affairs Department to organise publicity and promotional activities to promulgate work safety at the district level.

1.18In 2023, the LD organised in collaboration with the OSHC, Construction Industry Council and the Society of Registered Safety Officers, etc., a series of safety seminars concerning RMAA works to engage industry stakeholders in exploring means to further enhance construction safety. Given the occurrence of work-above-ground accidents involving small-scale renovation and repair works from time to time, the LD collaborated with the OSHC as well as the property management and construction industries to launch the “Promoting the Use of Light-duty Working Platforms Scheme Phase II”. Through property management companies, step platforms and hop-up platforms (light-duty working platforms) would be lent to the contractors and workers for conducting above-ground RMAA works in the estates or residential buildings free of charge, so that ladders would not be used for such work.

Follow-up Investigations of Serious and Fatal Work Accidents

1.19The LD is highly concerned about the serious and fatal work accidents that happened in 2023, including the fatal industrial accident involving a confined space in Tsim Sha Tsui. We commenced immediate on-site investigations as soon as we were notified of the accidents to identify the causes and recommend improvement measures. We also issued suspension notices to the relevant duty holders, suspending the work processes concerned until we were satisfied that measures to abate the relevant risks had been taken. We would ascertain the liability of the duty holders concerned and take actions pursuant to the law if there was any violation of the OSH legislation, including initiating prosecutions against relevant duty holders.

1.20In addition, having considered the nature of different accidents, the LD launched a series of follow-up actions, for example, conducting targeted SEO and stepping up our enforcement efforts on construction sites by establishing several teams of Special Task Force. When it was reasonable to believe that carrying out certain work process may pose a considerable OSH risk, we would suspend relevant work activities immediately and issue advisory letters to duty holders/stakeholders concerned, urging them to take appropriate safety measures with a view to preventing recurrence of similar accidents. On the fronts of publicity and promotion as well as education and training, the LD in collaboration with the Construction Industry Council, OSHC and relevant organisations organised safety seminars after the occurrence of individual serious or fatal accidents to explain the accident-related statutory requirements and preventive measures to the industry.

Safety Promotional Campaigns

1.21With regard to the construction industry, to continue to improve its safety performance, the LD, in collaboration with the OSHC and related organisations, organised the “Construction Industry Safety Award Scheme” again to inculcate a work safety culture in the industry and to enhance the safety awareness of employers, employees and their families. The scheme featured a variety of activities which included safety performance competitions, roving exhibitions, safety quizzes and an award presentation ceremony. We also produced radio programmes and the making-of the Award Scheme, as well as broadcast Announcements in the Public Interest (APIs) and promotional films on television/radio and public transport.

1.22In order to promote OSH of the catering industry, the LD launched the “Catering Industry Safety Promotional Campaign 2023/2024” in 2023 to enhance the work safety and health awareness of employers and employees of the industry.

Strengthening Publicity of OSH Complaint Channels

1.23Through an online OSH complaint platform, the LD facilitates employees and members of the public to report unsafe working conditions with mobile electronic devices, so that the LD can conduct inspections in a more targeted manner and carry out prompt follow-up actions pursuant to the risk-based principle. The LD is promoting complaint channels through different publicity measures, including broadcasting relevant TV API/Radio API on TV/Radio stations; placing advertisements on newspapers, displaying advertisements at prominent locations and public transport; disseminating handy card holders printed with details of the complaint channels at the Service Centers of Workers Registration; and promulgating the information of complaint channels in Mandatory Safety Training Courses and the LD's OSH publications.

Work Safety Alert Animation

1.24The 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 safety measures to be taken to prevent such accidents. Three animation videos were produced, and uploaded to the LD's website and disseminated through various channels in 2023. The LD continued to give sub-titles to the animation videos in different languages of diverse races in order to enhance the publicity and promotion targeting workers of diverse races.

Continuous Refinement of Mandatory Safety Training (MST) Courses

1.25In 2023, the LD continued to refine the MST courses, including the mandatory basic safety training course (construction work) and MST courses of confined spaces operation to raise the workers' awareness of the causes and risks of accidents and their ability to eliminate these risks in order to prevent accidents. We also continued to conduct different modes of inspections to strengthen the monitoring of training course providers.

Prevention of Heat Stroke at Work

1.26The LD published the "Guidance Notes on Prevention of Heat Stroke at Work" (GN) and launched the "Heat Stress at Work Warning" in May 2023 to facilitate the industries to take appropriate measures to safeguard employees against the risk of heat stroke at work. The LD also collaborated with the OSHC in relevant publicity and promotion work to help both employers and employees understand the GN and apply the recommendations in formulating necessary heat stroke preventive measures.

Pilot Rehabilitation Programme for Employees Injured at Work

1.27Having regard to the enrolment situation of the “Pilot Rehabilitation Programme for Employees Injured at Work” (Pilot Programme) and the relevant data on reported work injuries, the LD considered it viable for the coverage of the Pilot Programme to be widened to include “catering and hotel industry” and “transportation and logistics industry” in addition to “construction industry”. The LD and the service contractor of the Pilot Programme commenced various preparatory work in the year with an aim to expanding Pilot Programme in the second quarter of 2024.

Strengthening Local and International Partnerships

Labour Day Reception

1.28On 28 April 2023, the Secretary for Labour and Welfare, Mr Chris Sun, hosted a reception at the Hong Kong Convention and Exhibition Centre to pay tribute to the workforce. The Chief Executive, Mr John Lee, officiated at the reception, with guests from trade unions, employer associations and other organisations attending.

Contacts with Other Labour Administrations

1.29The LD maintained liaison and interflows with other labour administrations through visits and participation in various activities in 2023.

1.30In June 2023, a tripartite team comprising representatives from the Government, employers and employees, led by the Secretary for Labour and Welfare, Mr Chris Sun, attended the 111th Session of the International Labour Conference in Geneva, Switzerland, as part of the delegation of the People's Republic of China.

1.31In July 2023, a delegation led by the Executive Vice-Chairman and Director General of the China Enterprise Confederation, Mr Zhu Hongren, visited the LD to understand the latest development of labour matters in the HKSAR.

1.32In October 2023, the Deputy Commissioner for Labour (Labour Administration), Mr Raymond Ho, led a delegation to visit the Labour Affairs Bureau of the Macao SAR Government to exchange views on issues relevant to importation of labour and the protection for employees.

1.33In November 2023, the Deputy Commissioner for Labour (Occupational Safety and Health), Mr Vincent Fung, led a delegation to attend the 23rd World Congress on Safety and Health at Work organised by the International Labour Organisation, the International Social Security Association and the SafeWork NSW in Sydney, Australia.