Hong Kong Sanctions Two Employers for Violating Enhanced Supplementary Labour Scheme Rules

The Labour Department (LD) has slapped two Hong Kong employers—Shengshi Investment Management Co. Ltd. and Ho Fu Kee Noodles (Tsuen Wan) Ltd.—with a two-year ban from hiring workers under the Enhanced Supplementary Labour Scheme (ESLS) after investigators found multiple breaches in their recruitment practices. Effective immediately, the LD has terminated all ongoing import-of-labour applications by the firms and will reject any new requests until October 2028. According to the LD, Shengshi Investment provided false local recruitment results, imposed unapproved employment terms and failed to hire suitably qualified local candidates before seeking to import dish-washers. Ho Fu Kee Noodles similarly declined to employ an eligible Hong Kong job-seeker “without reasonable excuse.” Under ESLS rules, employers must conduct genuine local recruitment for two weeks and offer market-rate salaries before applying to bring in foreign workers for low-skill vacancies. The crackdown signals stricter enforcement of immigration-linked labour schemes as the territory grapples with public concern over wage suppression. More than 14,000 ESLS applications have been approved since its enhancement in mid-2025, allowing companies in hospitality, construction and elderly care to fill acute manpower gaps with non-local employees. For global mobility and HR teams, the case is a reminder that non-compliance can derail staffing plans and trigger costly delays. Employers should audit recruitment records, ensure advertising meets LD specifications and document every interview outcome. Internal stakeholders must also align visa timelines with onboarding schedules to avoid project disruption if an application is suspended. Legal advisers expect the LD to publish additional guidance this quarter, including a “three-strike” framework and higher transparency on sanction decisions. Companies importing staff under other schemes—such as the General Employment Policy or Admission Scheme for the Second Generation—are watching closely, as the LD has hinted similar compliance metrics may be rolled out across the board.