HK | Trifles with Hong Kong Work Visa

Global Mobility is a major trend in the world’s current labor market, and the expertise of individuals is one of the key components of this trend. In this context, many regions are active in recruiting professionals they lack, and generally offer to foreign talents employment conditions that are at least as good as local conditions in order to fill the shortages.

While socioeconomic factors in Hong Kong in recent years have led some business sectors to enter a complete state of paralysis, some industries have benefited from the opportunities that arise from fluctuating markets. Despite the uncertain business environment, the city survives as one of the world's leading metropolises with excellent salaries and benefits, and a distant leader over other major Asian cities by a wide margin. As a result, the demand for professionals in Hong Kong remains high, and the demand for Hong Kong work visas from foreigners is unaffected.

For instance, in April 2021, as Citigroup moves to shed most of its consumer banking operations in 13 overseas markets, of which 10 are in Asia, it concurrently planned to recruit 1,100 private bankers, relationship managers and 1,200 technical and operational staffers in Hong Kong and Singapore as part of its strategic deployment of wealth centers in Hong Kong, London, United Arab Emirates and Singapore and its effort to scale up its asset under management for Asian clients. As its Hong Kong center will be dedicated to serving high net worth entrepreneurs and corporations in Asia, the hiring of local and imported expertise and talents will be vital.

Some public opinion claims that foreign workers are the biggest competitor for local seekers – especially workers at the technician level or below – therefore affecting the labor market in Hong Kong. Some further conjecture that overseas workers are willing to accept jobs at lower salaries, therefore affecting the local salary level in the long run. In fact, the Hong Kong Immigration Department (IMMD) and the Labour Department have clear guidelines on the recruitment of and issuance of work visas to all foreign and overseas workers.

For instance, the employment visa arrangement under the Imported Workers under the Supplementary Labour Scheme (SLS) provides that:

This instruction means to set certain standards for the remuneration of foreign workers at technician level or below. Employers in Hong Kong must comply with the statutory provisions – including the Employment Ordinance, the Employees’ Compensation Ordinance and the Immigration Ordinance – and perform their responsibilities as employers in accordance with the employment contract and the SLS. As such, the remuneration provided to these workers should be higher or at least equivalent to the level offered to locals:

The underlying employment visa or work permit will therefore only be issued to the foreign technician with considerable and matching skills; under the Labour Department’s arrangement, not only will the foreign worker be prevented from competing with local job seekers, but his presence will be conducive to the training of local employees.

In addition, employers who wish to recruit foreign workers need to fulfill the following 3 requirements:

The SLS has stringent requirements for employers. Apart from showing recruitment records, conducting regular local recruitment, and arranging retraining for employees, employers are also required to provide proper accommodation for the foreign employees, guarantee their living expenses, and are responsible for the cost of the foreign employees’ return to their place of origin upon termination of the employment contract.

The employment visa application for Imported Workers under the SLS only fulfills half of the requirements for entering Hong Kong. The application must then be submitted to the IMMD and approved by two separate government departments before an entry visa can be issued.

The issued visa under the SLS does not allow foreign workers to bring along their accompanying relatives, nor to change employer. They are required to leave Hong Kong immediately upon completion of the contract unless the employer submits an extension of stay application to the department if they continue to meet the SLS requirements.

In sum, employing foreign workers is not exactly a way for employers to lower their costs. Not only should the employer go through multiple tedious procedures with two government departments, but the offered salaries must also meet the median of the labor market in Hong Kong, and the foreign worker must be provided with extra welfare. Instead, the work visa issued under the SLS is designed to encourage the hiring and the technical training of local workers, thereby enhancing their technical skills and competitiveness.

Beside visas and permits for technicians and low-skilled workers, the Hong Kong labour market has a strong appetite for skilled professionals and offers various types of work visas to foreign nationals through its General Employment Policy (GEP), Admission Scheme for Mainland Talents and Professionals (ASMTP), Technology Talent Scheme (TechTAS), and Investment as Entrepreneurs. A work visa may also be issued to foreigners who come to Hong Kong for a Training.

Looking at the GEP and ASMTP closely, we find minimal differences between the two programs. They both aim at recruiting foreign professionals to fill the skills and expertise shortages among Hong Kong-based employers, and they have very similar eligibility criteria. The main distinction lies in the target applicant, who must be a Chinese resident of the Mainland China in the case of the ASMTP, and any other foreign nationals in the case of the GEP (with a few exceptions).

It is also worth noting that, unlike the imported workers under the SLS, applicants under the GEP or the ASMTP are allowed to apply for dependent visas and are not bound by any industry restrictions. GEP or ASMTP visa holders may also apply for the Hong Kong permanent residency after they have lived in Hong Kong for 7 years, whereas the SLS visa does not grant such right.

Because they are given such possibility of obtaining permanent residency, the eligibility criteria for both the employers and employees are also considerably higher. Only foreign nationals or mainlanders with proven skills, knowledge or experience that Hong Kong lacks may apply to work in Hong Kong as professionals under the GEP and ASMTP.

For companies that have been established for less than 12 months, a detailed business plan (e.g., source of funds, capital investment, estimated turnover, turnover, gross profit, net profit, etc.) is required, together with the company structure and local hiring plan, etc. It is important to provide IMMD with a copy of all the documents used to establish the company (business registration, certification of incorporation, tax registration, etc.).

Alternatively, if a foreign national wishes to establish or join a business in Hong Kong and work for or be sponsored by that company, he or she may apply for a work visa under the “Investment as Entrepreneurs” program, which is a also under the administration of the GEP.

In a nutshell, the employment visa application in Hong Kong is straight forward but cannot be taken for granted. All non-resident expatriates or residents of Mainland China must apply for a work visa before taking on any employment in Hong Kong, whether it is for a short-term or long-term job, paid or unpaid. The application must be submitted to (and approved by) the IMMD before the applicant can start working. It is an offense under the laws of Hong Kong to submit false statements or forged documents to the IMMD, and a reviewing officer may conduct on-site visits when deemed necessary. If you are found guilty of misrepresentation after your visa is approved, your Hong Kong work visa and permission to stay will be invalidated, with immediate effect. It is therefore not recommended to test your luck, and such record will remain with the IMMD. Seek out the help of professionals when needed.

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