HK’s anti-job hopping rule seen to burden employment agencies

Proposed rule preventing domestic workers from breaking two-year contracts may cost job agencies more and make HK less attractive to migrant workers.

Hong Kong’s anti-job hopping rule for foreign domestic helpers was proposed to protect employers from “unfairness and inconvenience.” Whilst the rule will benefit employers, an expert believes it will be the opposite for employment agencies.

Fair Employment Agency General Manager Jasmine Lam told Hong Kong Business that the proposed rule will create “unsustainable financial burden” for employment agencies.

The expert explained that under the proposed rule, employment agencies will be mandated to discuss with employers a refund arrangement should the domestic worker they assigned to a household breaks his or her contract.

“Should the rule be implemented, the cost burden will eventually be passed on to the agencies and the agencies will need to rethink their cost structure on how to sustain their business,” Lam said.

Agnes Chan, director of Lincoln Consultancy Services Ltd., said employment agencies will also have to increase expenses because under the regulations, they may need to provide additional training to their staff.

“[Employment agencies] may need to spend more time and resources to ensure that foreign domestic helpers comply with the regulations, which could also increase the costs,” Chan told Hong Kong Business.

“Additionally, employment agencies may need to adjust their services to comply with the proposed regulation, such as providing additional training and support to foreign domestic helpers to ensure they understand the current policy clearly, as requested by the Labour Department,” she added.

Whilst the anti-job hopping mandate was made to protect employers, the rule also have negative implications on them.

“The job hopping rule will lead to an unpredictable visa approval process, creating uncertainty in the domestic workers market. Employers will [then] have a smaller pool of experienced workers to choose from and as a result that will actually prevent employees from hiring a candidate of their choice,” Lam explained.

“[Agencies] will [then] look into increasing the pricing for the employers to cover unforeseen costs and potential losses. Those agencies that have been charging workers for placement might even pass the additional costs on to the workers,” Lam added.

Overall, Lam believes the rule does not solve the root problem of what is perceived as “job-hopping” and is only addressing the symptoms.

“The root problem is the charging of excessive and illegal placement fees to workers,  which leads to the wrong incentives for employment agencies.  ,” Lam said

Less attractive labour market

Given its ageing population, there is a need for Hong Kong to maintain an attractive domestic worker market.

Chan said the rule may ultimately lead to a “decrease” in Hong Kong’s attractiveness to domestic helpers.

“As other countries, such as South Korea, are offering more favourable conditions, higher wages, and separate accommodation to the workers, they may become more attracted to these destinations,” she said.

“This might result in a decline in the number of foreign domestic helpers willing to work in Hong Kong, impacting the labour force in these regions,” she added.

But Chan did note that the rule still has positive implications, especially for the employers.

“It can provide them with more stability in their workforce, reducing the need to frequently hire and train new domestic helpers,” she said.

“It may also improve the quality of service provided by domestic helpers by encouraging them to stay on the job throughout the whole contract period and develop more skills and experience,” she added.

Given the pros and the cons of the rule, Chan encouraged the government to carefully assess the proposed regulation and ensure that it is balanced and protects the “rights and welfare” of migrant workers, whilst ensuring the availability of affordable and reliable domestic help for households that need it.

Retaining workers

Should the rule be implemented, employment agencies must ensure that they are “well-versed with the latest policy and be able to explain it clearly to foreign domestic helpers as well as employers,” Chan said.

She said employment agencies should focus on building long-term relationships with employers and foreign domestic helpers by “providing ongoing support and mediation services to help resolve any issues that may arise during the employment period, such as communication or cultural barriers.”

As a reminder, Chan said employers should “not rush into hiring a domestic helper without thoroughly assessing their skills, experience, and suitability for the job.”

“One effective way to evaluate a domestic helper’s suitability is to ask for a letter of introduction from their previous employer. This can provide valuable insights into the domestic helper’s work ethic, personality, and performance,” Chan said.

“Employers should also conduct a thorough interview with the domestic helper to assess their communication skills, language proficiency, and cultural compatibility,” she added.

Speaking from experience, Lam underscored that domestic workers leave their jobs not because of salaries, but because of poor relationships with their employers.

Lam, suggests  that employers, with the support of the government,  can benefit from pre-hiring orientation to help them hire and manage migrant workers better.