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FDH employers to pay employees retraining levy

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From October 1, 2003 onwards, any person who applies to the Immigration Department to employ, or renew a contract with, a foreign domestic helper (FDH) will have to pay a levy of $400 per month for the whole of the contract period.

The levy will be used for the training and retraining of the local workforce and related promotional activities to enhance their employment opportunities. It will be payable upfront in a lump sum of $9,600 or in four equal instalments of $2,400.

"A visa for the concerned FDH will not be issued until the lump sum or first instalment is paid," a Government spokesman said today (August 29).

"All new applications received by the Immigration Department from October 1, 2003 will be subject to payment of the levy."

"An application for the renewal of contract with an FDH whose limit of stay is expiring on or before October 28, 2003 will not be subject to the payment of levy if received by the Immigration Department within the four weeks before the contract expiry date, e.g. an application for renewal of a contract expiring on October 28, 2003 can be made on September 30, 2003. This is in keeping with the present practice of allowing a four-week lead time for the Department to process the applications. But if the application is submitted on or after October 1, 2003, it will be subject to the payment of levy," the spokesman added.

"All applications for the renewal of contract with an FDH whose limit of stay is to expire after October 28, 2003 will be subject to the payment of levy. Following present practice, such applications will not be accepted more than four weeks before the expiry date of the FDH's limit of stay.

"The levy will only apply to new contracts or renewal of contracts. Employers will not have to pay the levy until they renew the contract or terminate the contract to engage a new FDH. Employers are reminded to note the transitional arrangements for submission of contract renewal applications," the spokesman stressed.

The levy is not refundable under any circumstances, but the Immigration Department may take into account the relevant levy balance when it receives an application for engaging a replacement by the same employer. Specifically, the unused levy balance may be carried forward for a period of four months for the employment of a new FDH if the contract of the current FDH is terminated, either by the employer or the helper, or if the FDH fails to arrive in Hong Kong.

For applications which could be submitted before October 1, 2003, employers must ensure that the application forms for an entry visa are duly completed and are enclosed with all necessary supporting documents, including a completed contract (notarised by the relevant consulate, if required.) An application without any of the necessary supporting documents will be returned and no further action will be taken until the application form and all necessary documents are resubmitted. The date the resubmitted application is received by the Immigration Department will be deemed the application date.

The spokesman also reminds employers that all FDHs should take their home leave guaranteed by their standard employment contracts at the end of the contract period and, for contract renewal, return to Hong Kong for a new contract using the new entry visa issued by the Immigration Department.

However, the Immigration Department may grant an extension of stay of not more than one year together with an entry visa to FDHs renewing contracts in cases where employers have justifiable needs to keep the FDHs immediately after the expiry of the current contract. The FDH, nevertheless, must return to his/her home country for home leave before the middle of the new contract (i.e. before the extended stay expires) and come back to Hong Kong to complete the rest of the new contract on the strength of the entry visa.

In such cases, the application for contract renewal must be submitted with all necessary supporting documents within four weeks of the contract expiry. Nevertheless, employers should avoid submitting applications for contract renewal too close to the expiry of the FDH's limit of stay, which may result in a break whereby an extension of stay cannot be granted to an FDH to start the new contract with his/her employer immediately after the current contract expires.

Details of the visa application procedures and payment of levy have been posted on the Immigration Department's website (http://www.immd.gov.hk/). The guidebook and the new application form for employment of domestic helper from abroad will be available for distribution at the department's offices around mid September 2003. Enquiries can be made with the Immigration Department at 2824 6111.

End/Friday, August 29, 2003

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