HONG KONG — The Labour Department levied an administrative penalty against Ying Garden, a restaurant under the management of Cheer Power Holdings Limited, following a substantiated complaint regarding the misuse of the Enhanced Supplementary Labour Scheme (ESLS). Effective December 1, 2025, the department revoked all previous in-principle grants for importing labor and imposed a two-year ban on processing any new importation applications from the company. This decisive action stems from an investigation confirming that the restaurant hired non-local workers through the ESLS while simultaneously dismissing local staff, a violation of the scheme’s principal mandate.
Employer Breached Labor Importation Requirements
The ESLS is designed to allow local employers to recruit necessary manpower only when domestic workers are unavailable to fill specific vacancies. A core principle of the scheme mandates that the priority for employment must always go to the local workforce. Following the initial complaint, the Labour Department launched an inquiry and concluded that Ying Garden had violated these foundational requirements.
The penalty, which includes the withdrawal of prior recruitment approvals and the two-year moratorium on new applications, serves as a significant deterrent. Under the structured framework of the ESLS, employers face definitive consequences—including the cancellation of import permits and future application rejection—if they are found to contravene local labor laws, immigration regulations, or the specific conditions detailed in the Standard Employment Contract governing imported workers.
A spokesperson for the Labour Department underscored the unwavering requirement for employers utilizing the scheme to prioritize local hiring. The rules governing redundancies are particularly strict: should an employer need to implement layoffs, any imported workers must be the first contingent to be discharged, thereby protecting the job security of local residents.
Understanding Enhanced Supplementary Labour Scheme Rules
The administrative sanctions against Cheer Power Holdings Limited highlight the government’s commitment to protecting local employment opportunities. Businesses approved to import foreign labor through the ESLS must adhere strictly to the established guidelines.
Key ESLS Obligations for Employers:
- Local Priority: Employers must clearly demonstrate efforts to recruit local staff before seeking approval for imported workers.
- Non-Substitution: Imported workers cannot be used to displace or substitute existing local employees.
- Redundancy Protocol: In the event of workforce reduction, all imported workers must be terminated before any local staff are considered for layoff.
This latest enforcement action sends a clear message across the hospitality and service sectors that government scrutiny remains high, ensuring the ESLS operates as a supplementary measure rather than an avenue for undermining local labor market stability. For businesses considering the scheme, meticulous adherence to all stipulated conditions and labor laws is essential to avoid severe operational disruptions and administrative penalties.