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IMPACT – MEDIUM
What is the change? Hong Kong employers must include a new declaration form verifying their local recruitment efforts when applying for work permits in the General Employment Policy category and Admission Scheme for Mainland Talents and Professionals category. The Immigration Department has confirmed that employers hiring foreign nationals under the Immigration Arrangement for Non-local Graduates category do not need to conduct local recruitment and are not required to file the declaration form.
What does the change mean? An authorized individual in the company must sign and stamp a declaration form stating that “genuine efforts have been made to recruit suitable local candidates but without success,” or providing a reason if genuine efforts have not been made. This requirement follows recent changes requiring employers to take additional job-advertising steps.
Background: The Hong Kong Immigration Department was subjected to a government audit in April that made several recommendations aimed at strengthening enforcement in a number of areas, including whether employers were taking steps to hire local workers before filling jobs with foreign workers.
BAL Analysis: The additional declaration form is consistent with expected changes as a result of the audit. Hong Kong employers should expect greater tightening of immigration rules in the near future as the department continues to implement the audit recommendations.
This alert has been provided by the BAL Global Practice group and our network provider located in Hong Kong. For additional information, please contact your BAL attorney.
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What is the change? The Hong Kong Immigration Department is tightening procedures and scrutinizing visa applications across the board, and is requiring additional job-advertising steps by employers applying for employment visas.
What does the change mean? Employers sponsoring foreign nationals for employment visas in the General Employment Policy (GEP) and Admission Scheme for Mainland Talent Professionals (ASMTP) categories should prepare to advertise jobs and justify why a local worker was not hired. Certain intracompany transferees in high-salaried or senior executive roles may be allowed to submit detailed written explanations instead of conducting local recruitment. All visa applicants should anticipate strict adherence to procedures and requests for additional supporting documentation at the discretion of immigration officials.
Background: The department signaled in April that stricter rules were on the way, following a government audit of the Immigration Department that recommended several reforms, including allowing immigration officials to consider the local labor force and market wages when deciding work permit applications.
Employers must now prove that they have advertised jobs before applying for employment visas, justify why a local worker was not hired, and provide a letter of support. Immigration officers may request additional evidence or documents at their discretion.
BAL Analysis: Hong Kong employers should be aware of the stricter environment and expect additional changes as the Immigration Department continues to implement the set of recommendations in the audit report. Employers should anticipate that employment visas may take eight weeks to process, instead of the normal four to six week, during the busy summer season.
What is the change? A government audit of the Hong Kong Immigration Department has been released and its recommendations are expected to lead to stricter enforcement of visa applications for foreign professionals, intracompany transferees, foreign graduates and entrepreneurs.
What does the change mean? Companies and foreign applicants should expect stricter adherence to existing guidelines on timely submission of supporting documents, closer scrutiny of their efforts to hire local workers and pay foreign workers market-rate wages, and enhanced verification of the authenticity of documents submitted by nonlocal graduates. Additionally, intracompany transferees will be vetted more carefully on the required one year of previous experience.
Background: The audit was conducted to assess the efficiency of the Immigration Department and to find ways to improve procedures. The department agreed with all recommendations made in the audit report. The key findings and recommendations are:
BAL Analysis: Employers and foreign nationals should anticipate tightening of existing rules, new guidance in some areas and closer scrutiny of work permit applications.
What is the change? A series of proposed immigration improvements benefiting foreign workers in several categories are planned to take effect in the coming months.
What does the change mean? Among the benefits, foreign nationals applying under the General Employment Policy (GEP), the Admissions Scheme for Mainland Talents and Professionals (ASMTP) and the Quality Migrant Admission Scheme (QMAS) will be eligible for longer initial stays and more favorable extension conditions.
Background: The measures would allow applicants under the GEP, ASMTP and investor programs to obtain an initial stay of two years (instead of the current one-year period) or the duration of the employment contract, whichever is shorter. Extensions of stay in these categories would be changed to two extensions with durations of three years each (instead of the current system of three possible extensions of two, two and three years).
In the QMAS program, the general points test will be revised to award 30 additional points to graduates of internationally recognized schools and 15 points to applicants with at least two years of graduate or specialist level international work experience. The initial and renewal durations of stay will be revised similarly to the above categories, and applicants under the achievement-based points test are eligible for an initial eight-year stay.
Top-tier foreigners under the GEP, ASMTP and QMAS programs are eligible for a six-year extension if they meet certain criteria, including employment in Hong Kong for at least two years and having a taxable income of at least HK$2 million in the previous year of assessment.
BAL Analysis: When implemented, the changes will give more flexibility to some expatriate employees and investors and reward those with top-level education and work experience.
IMPACT – LOW
What is the change? In a reciprocal agreement, Singapore and Hong Kong will allow eligible travelers to enroll in each other’s automated border clearance systems.
What does the change mean? The arrangement will streamline border procedures for eligible travelers.
Background: Hong Kong SAR passport holders age 11 and older can enroll in Singapore’s enhanced Immigration Automated Clearance System as long as they have visited Singapore at least three times in the preceding 12 months, are in good standing with Singaporean authorities and their passport is valid for at least six months. Parents must accompany applicants 17 years old and younger when applying.
Hong Kong SAR has imposed similar criteria for Singapore passport holders to enroll in Hong Kong’s e-Channel service, except that applicants who have not visited Hong Kong SAR three or more times in the past 12 months may still be eligible for e-Channel if they hold a SAR Travel Pass, APEC Business Travel Card with “HKG” printed on the back, a Hong Kong International Airport (HKIA) Frequent Visitor Card, or a frequent-flyer program membership card issued by airlines that have joined the Frequent Visitor scheme.
BAL Analysis: Frequent business travelers will benefit from automated clearance at the airports and removal of long waits upon arrival and departure.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
IMPACT – High
What’s the compliance issue? A sweep by the Hong Kong Immigration Department and Police that arrested six is a warning to companies that visitors and tourists are not allowed to work.
Background: On Oct. 4, over 50 immigration and police officers launched raids on 15 commercial and residential locations and arrested four men and two women for violating their conditions of stay by working illegally. The arrests signal that authorities are stepping up enforcement against illegal employment.
“Visitors are not allowed to take up employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration,” a spokesman for the Immigration Department said in a statement on the agency’s website.
Companies that allow an individual to work without proper permission can be fined up to HK$350,000, and the responsible company representatives can face up to three years of jail time. Employees who work in violation of the conditions of their stay face fines of up to HK$50,000 and up to two years of jail time.
BAL analysis: Employers should take note of the increased enforcement activity and ensure all of their employees have proper work authorization. The arrests are also a reminder to travelers seeking to do business that they must have work authorization before engaging in any paid or unpaid employment activities.
This alert has been provided by the BAL Global Practice group and our network provider located in Hong Kong. For additional information, please contact GlobalVisaGroup@bal.com.