The Executive Council has approved suspending the Employees Retraining Levy for two years from August 1.

Employers who are granted visas for imported labour and foreign domestic helpers by the Immigration Department before August 1, 2010, will get a full 24-month exemption from the levy, including renewal of existing new contracts.

Making the announcement today Secretary for Labour & Welfare Matthew Cheung said the suspension shows the Government's sincerity and flexibility in catering to both employers and employees.

"We are conscious of the need to introduce mitigation measures as appropriate to protect the rights of foreign helpers and minimise the possible impact of premature termination of contracts on them," Mr Cheung said.

Special discretion

The Director of Immigration will exercise discretion in the suspension period and allow advanced contract renewal with the same employers without requiring helpers to leave Hong Kong after existing contracts terminate.

If an employer has prematurely terminated their helper they must pay instalments covering the period of employment only.

For contracts with visas granted before August 1 and existing contracts which are still in force with outstanding levies, employers are required to continue to pay the levy.

If the contract is subsequently terminated prematurely with unused levy balance, the balance will not be refunded or carried forward.

Quota system

The Immigration Department will introduce a quota system to ensure smooth and orderly processing of visa applications or collection on August 1 and the following few days.

Visa applicants and collectors may face congestion and extended waiting times, so the department will flexibly deploy staff and adopt contingency measures.

Mr Cheung said the two-year levy suspension is a temporary measure to provide relief to the middle class, adding levy collection is essential in ensuring steady and sufficient financial resources for the Employees Retraining Board.

For enquiries contact the Immigration Department on 2824 6111 (phone) or 2877 7711 (fax).