Hong Kong

1. Impact of Covid-19 in the workplace

In Hong Kong, this also remains the biggest challenge for the year ahead. Remote working will likely continue until the “fourth wave” is over when we hope that employers can reconsider their “return to the office” strategies. This will involve managing risks from operational, health and safety and an employee perspective.Digitalisation of the workplace and hybrid arrangements are expected.

The second tranche of the Employment Support Scheme (ESS) ended on 30 November 2020 and it is not yet clear whether a third tranche of the ESS will be rolled out. As the scheme comes to an end, we are inevitably going to see more cost-cutting measures, restructurings and redundancies.

See our dedicated feature on Covid-19 Workforce and Employment Issues.

2. Environmental, Social and Governance (ESG)

We also expect to see an increased focus on environmental, social and governance issues in the workplace, including:

• wider stakeholder and employee communities as part of business strategy
• meaningful employee engagement
• “fair” remuneration practices
• modern slavery statements, and
• impact on climate change and sustainability metrics.

Culture will also be a hot topic, particularly in the regulated sector, with continued momentum around diversity and inclusion initiatives.

With the amendments to the Hong Kong Stock Exchange Environmental, Social and Governance Reporting Guide and the related Listing Rules (which took effect on 1 July 2020), listed companies’ disclosure obligations in relation to social key performance indicators are now upgraded, some of which are relevant to employment issues (such as occupational health and safety measures adopted, steps to avoid child and forced labour, and whistle-blowing procedures).

3. Regulated people and conduct issues

We expect there will be a continued focus on individual accountability for regulated entities, in particular, on compliance with the Manager-In-Charge regime for licensed corporations. We also anticipate that regulators in Hong Kong will continue their emphasis on tackling various types of employee misconduct.

In May 2020, the Hong Kong Monetary Authority published a consultation paper on a proposed Mandatory Reference Checking Scheme which will require authorised institutions in Hong Kong that are recruiting to fill certain specified roles to obtain references from the applicant’s current and former employers which are also authorised institutions in Hong Kong.

4. Family friendly employment law changes

Statutory maternity leave has been extended from the previous ten weeks to 14 weeks with effect from 11 December 2020. The government has committed to reimburse employers for the additional four weeks’ maternity leave pay, subject to a cap of HK$80,000 per employee. The scheme for reimbursement of maternity leave pay is expected to be implemented in the first half of 2021.

With effect from 19 June 2021, the Sex Discrimination Ordinance will be amended to cover breastfeeding as an additional protected characteristic.

5. Modernisation of data privacy laws

The Hong Kong Government is formally considering amendments to the Personal Data (Privacy) Ordinance. The Panel on Constitutional Affairs published a discussion paper in 2020 which is aimed at strengthening the protection of personal data.

The key areas include:

i. implementing a mandatory data breach reporting mechanism;
ii. imposing new data retention governance requirements;
iii. expanding the Privacy Commissioner’s powers;
iv. introducing direct regulation of data processors;
v. expanding the definition of personal data; and
vi. implementing regulation on the practice of “doxxing” (i.e. publishing private or identifying information about a person without consent, typically with malicious intent).