Hong Kong convicts woman for running unlicensed staffing firm

HONG KONG, CHINA — A woman in Hong Kong was convicted last August 8 for managing a staffing agency without a valid license. 

This announcement by the Government of the Hong Kong Special Administrative Region highlights the stringent regulatory environment governing employment agencies in the city.

Court imposes hefty penalties

The court imposed financial penalties on the defendant, including a fine of HKD 12,000 ($1,500). 

Additionally, she was ordered to refund HKD 32,400 ($4,100) to a job seeker who filed a complaint against her unlicensed operations. 

Complaint triggers investigation

The complaint, lodged by a job seeker in November 2023, led to a government investigation. 

Authorities found sufficient evidence that the defendant was operating an employment agency without the required license, resulting in her prosecution. 

Legal framework for Hong Kong employment agencies

According to the government press release, “All establishments or persons operating a business in Hong Kong to obtain employment for another person or supply personnel to an employer are governed by Part XII of the EO and the Employment Agency Regulations (Cap. 57A).” 

The unauthorized operation of an employment agency can lead to prosecution, with severe penalties for non-compliance.

The maximum penalty for operating an unlicensed employment agency or overcharging commissions from job seekers is a fine of HKD 350,000 ($44,000) and up to three years in prison. 

Government’s stance on compliance

The Labour Department (LD) of Hong Kong emphasizes the importance of compliance with the law and the Code of Practice for Employment Agencies. 

The department warns that failure to adhere to these regulations may result in prosecution and potential revocation of licenses. 

Similar recent convictions

This recent conviction mirrors a similar case in June, where a man was fined and ordered to refund an employer after being convicted of operating an unlicensed employment agency. 

These cases collectively highlight Hong Kong authorities’ ongoing efforts to uphold the integrity of the employment sector and protect both job seekers and employers from unlicensed operations.

By maintaining strict oversight and enforcing legal standards, Hong Kong aims to safeguard its employment market from unauthorized practices and ensure that both job seekers and employers are treated fairly and transparently.