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Swiss Chinese Law Association — Geneva

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Legal Observatory / Investment and Business

Legal Update China Hong Kong SAR Rules in force

Hong Kong Labour Department Sanctions Two Employers for Violations Under Enhanced Supplementary Labour Scheme

The Hong Kong SAR Labour Department penalized two companies for breaching Enhanced Supplementary Labour Scheme rules while seeking to import dishwashers.

What Changed

  • Immediate termination of pending labor importation applications for Shengshi Investment Management Co, Limited and Ho Fu Kee Noodles (Tsuen Wan) Limited under the ESLS.
  • Imposition of a two-year ban, starting October 12, 2026, on processing any subsequent ESLS applications from both companies.
  • Establishment of non-compliance findings, including unauthorized recruitment terms, false recruitment reporting, and unjustified failure to employ qualified local job seekers.

Employers seeking to import workers into Hong Kong SAR face strict administrative consequences if they fail to comply with statutory recruitment requirements and prioritize local job seekers. On October 12, 2026, the Labour Department (LD) of the Hong Kong Special Administrative Region announced the immediate imposition of administrative sanctions against two companies—Shengshi Investment Management Co, Limited and Ho Fu Kee Noodles (Tsuen Wan) Limited—for breaching rules under the Enhanced Supplementary Labour Scheme (ESLS).

Following official investigations into applications to import dishwashers, the LD established multiple infractions by both entities. Shengshi Investment Management Co, Limited was found to have imposed unauthorized additional recruitment terms without the LD's approval, provided false local recruitment results to the LD, and refused to hire a qualified job seeker without a reasonable excuse. Meanwhile, Ho Fu Kee Noodles (Tsuen Wan) Limited failed to employ a qualified job seeker without a reasonable excuse.

In response to these non-compliance findings, the LD terminated the processing of all labour importation applications previously submitted by both companies under the ESLS with immediate effect. Furthermore, the LD declared that it will refuse to process any new applications submitted by either employer under the ESLS for a two-year period beginning October 12, 2026.

An LD spokesman reiterated that employers applying under the ESLS must strictly observe scheme requirements, particularly the obligation to accord priority to suitable local job seekers. Under ESLS regulations, any breach of labour or immigration laws, scheme rules, or the Standard Employment Contract can trigger severe administrative penalties. These administrative measures may include halting ongoing application reviews, revoking previously granted worker importation approvals, and imposing multi-year bans on subsequent applications.

This enforcement action underscores the LD's commitment to protecting local employment opportunities while maintaining regulatory compliance across Hong Kong SAR's labour importation framework.

Who May Be Affected

Employers operating in Hong Kong SAR utilizing or seeking to utilize the Enhanced Supplementary Labour Scheme for non-local staffing.

Cross-Border Context

Cross-border entities operating subsidiaries or businesses in Hong Kong SAR must ensure their local labor recruitment practices strictly comply with local employment priority rules before applying for foreign worker importation.

What to check next

  • Review official Labour Department guidelines for the Enhanced Supplementary Labour Scheme to verify current local recruitment and reporting compliance standards.

This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.

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