HR News & Trends: July Week 2

HR News & Trends: July Week 2

HR News & Trends: July Week 2

1. Regulations

i. Hong Kong Launches Scheme to Re-Engage the Elderly and Middle Aged

To encourage elderly and middle-aged individuals to re-enter the workforce, the Hong Kong Labour Department launched a three-year Re-employment Allowance Pilot Scheme (REA Scheme), effective 15 July. The scheme is available to legally employable Hong Kong residents aged 40 or above who have not been in paid employment for three consecutive months or more. Eligible participants can earn up to HK$20,000 for full-time employment: HK$10,000 after six months and an additional HK$10,000 after twelve months. Meanwhile, part-time workers will receive half these amounts. Employers can also join the Employment Programme for the Elderly and Middle-aged (EPEM) to provide on-the-job training and receive training allowances.

Read the full article about Hong Kong’s re-employment scheme.

 

ii. New Travel Permit for Non-Chinese Hong Kong and Macau PRs

Holders of APEC business travel cards can apply for a new five-year mainland China travel permit for non-Chinese Hong Kong permanent residents. Confusion arose due to notices at China Travel Service centres in Mong Kok and Tuen Mun incorrectly stating that APEC cardholders were ineligible and that applying for the new permit would cancel other mainland visas. However, it was clarified that APEC cardholders could indeed apply by providing a valid passport, Hong Kong ID card, and a document from the Immigration Department confirming their permanent residency and nationality.

The new permit allows non-Chinese permanent residents of Hong Kong and Macau residents to make multiple entries into mainland China. These travellers can stay up to 90 days on each visit and enjoy self-service clearance. APEC business travel cards enable businesspeople with pre-clearance granted to travel visa-free among 19 APEC economies and stay for up to 60 days on each visit. Despite their popularity, APEC cards are less practical for mainland entry compared to the new permit due to the inability to use e-channels for clearance.

Read the full paid article about the new Mainland China travel permit.

 

iii. Labour’s Win Sees Major Workers’ Rights Overhaul

Labour’s landslide victory in the general election marks a significant shift, promising the most extensive upgrade to workers’ rights in a generation. Experts highlight that these changes will require extensive updates to employment contracts and HR policies, with a heightened role for HR in managing these transitions. While the reforms aim to boost worker rights, they may also increase business costs and impact hiring, especially for smaller firms. Below are some of the changes HR professionals can expect.

  • Mental Health Parity: Labour intends to prioritise mental health on par with physical health. This includes recruiting 8,500 additional mental health staff and ensuring quicker, more effective access to mental health support.
  • Early Intervention: The focus will be on preventing mental health crises through early intervention, which can ensure employees receive timely support, potentially reducing absenteeism and improving productivity.
  • Children’s Mental Health: Labour plans to enhance mental health support for children by reducing waiting times, providing mental health resources in schools, and creating young future hubs. This long-term strategy is expected to contribute to a healthier future workforce.
  • Right to Disconnect: Labour proposes a “right to disconnect,” allowing employees to switch off from work outside of working hours. This is expected to improve work-life balance, reduce burnout, and enhance overall well-being.
  • Zero-Hour Contracts: Labour aims to ban exploitative zero-hour contracts, which would provide workers with more security and reduce stress associated with unpredictable work schedules. This is expected to lead to a more stable and motivated workforce.
  • Wage Boosts: Addressing the cost-of-living crisis, the Labour plans to boost wages, which can improve employees’ financial well-being and reduce stress, leading to better mental health and higher job satisfaction.
  • Menopause Support: All workplaces will be required to implement a Menopause Action Plan, ensuring that employees undergoing menopause receive the necessary support, contributing to their well-being and productivity.

Beyond this, Labour aims to overhaul tax policies, including closing loopholes and addressing the off-payroll working rules (IR35). Additionally, Labour also promised to protect the triple lock and review the pension system for better saver value.

Read the full article about Labour’s-healthcare focused initiatives.

Read the full analysis of the Labour’s proposed changes.

 

iv. US Increases Investments in Workforce Development

The Biden-Harris Administration announced major federal investments in Registered Apprenticeships to link Americans up with well-paying jobs created by the President’s Investing in America agenda. Over US$244 million is being allocated to modernise and expand the apprenticeship system in various industries, marking the largest federal investment in US history for these programmes. Key actions include:

  • The establishment of nine Investing in America Workforce Hubs to train workers for high-demand sectors through partnerships with unions, employers, local governments, and educational institutions.
  • Federal investments to catalyse additional private sector investments and create a demand for skilled workers.
  • New policies and partnerships have been introduced to ensure equitable access to these jobs, particularly for historically underserved communities.

Overall, the administration focuses on creating robust training pipelines to provide all Americans with access to good-paying jobs, with a particular emphasis on diversity and inclusion in the workforce.

Read the full article about Biden’s new investments in the workforce.

 

2. Business Moves: Amazon Scrutinises Coffee Badging

Amazon implemented a policy requiring employees to stay in the office for at least two to six hours per visit to comply with its return-to-office (RTO) mandate. This move aims to curb “coffee badging,” where employees briefly visit the office just to meet attendance requirements. Despite this policy, many employees are finding ways to bypass the mandate. The new rule has faced significant pushback from Amazon workers, with some questioning its transparency and legality. Amazon maintains that in-office presence boosts energy, connection, and collaboration, but employees continue to express frustration and seek loopholes.

Read the full article about Amazon’s crackdown on coffee badging.

 

3. Trends

i. Link Between Executive Pay and Climate Performance Needs Improvement

A recent study by ACRA and SGFIN at NUS highlights the progress and recommendations for climate-related disclosures among larger listed companies in Singapore, where 78% are from carbon-intensive sectors. The study examined 51 companies’ climate disclosures for the financial year 2022. Companies with over $1 billion in market capitalisation are doing well in establishing climate risk committees and disclosing climate-related risks. A separate EY report noted that 96% of Singapore-listed companies have begun climate reporting. However, the need to better connect these risks to their financial performance, set interim milestones and link executive pay to climate performance was identified.

Singapore will implement mandatory climate reporting in phases starting in 2025 for listed issuers and 2027 for larger non-listed companies. Initiatives like the Green Skills Committee and the Sustainability Reporting Grant have been rolled out to support companies in meeting these requirements.

Read the full article about SGFIN, ACRA and NUS’s climate reporting study.

 

ii. AI Use Gains Greater Acceptance in the US and UK

The new HireVue report reveals the growing acceptance of AI in hiring among both candidates and HR professionals. The survey included 3,100 workers and 1,000 HR professionals from the US and UK. The results show that:

  • 64% of candidates believe AI is as fair or fairer than humans in the hiring process.
  • 67% of HR leaders believe AI is better at finding quality candidates.
  • 70% of HR leaders currently use or plan to use AI in hiring.
  • 41% of those already using AI report increased productivity.

The report also notes that some HR professionals are using AI tools like ChatGPT without formal corporate approval. The report concludes with mixed perceptions among workers, with many believing AI can reduce bias but a majority opposing AI making final hiring decisions.

Read the full article about AI in HR.

 

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