22 November, 2016
Recent reports suggest the Standard Working Hours Committee (“SWHC”), established to explore the best legislative approach to regulating the working hours of Hong Kong employees, may be close to reaching agreement on proposed working hours. Recent reports state that labour unionists have agreed to compromise at a 44 standard working hour week, having long demanded legislation mandating 40 – 44 hours and for employers to pay staff 1.5 times their regular wages for every extra hour.
The SWHC, originally expected to submit a report to government by November 2016, has been given a two month extension to submit its final recommendations to government. Chief executive Leung Chun-ying is under pressure to standardise working hours within this term, which ends in March 2017.
The consultation to date has identified two potential approaches to regulating working hours:
- the “big frame” approach which would involve legislation to regulate working hours, for example, written employment contracts for employees specifying working hours; and
- the “small frame” approach which focuses on other measures to further protect grassroots employees with lower income, lower skills and less bargaining power, for example, setting a working hours standard and overtime compensation rate.
SWHC’s second round consultation explored issues around the “big frame” and “small frame” approaches, including discussing whether or not there
should be a transitional period for employers if legislation is enacted, and what impact changes are likely to have on smaller businesses.
SWHC’s consultation publication can be found here.
For further information, please contact:
Susan C. Kendall, Partner, Baker & McKenzie
susan.kendall@bakermckenzie.com
