China’s New Law Governing Personal Data and Its Relation to Employment

Personal data is valuable, depending on who you ask. While ordinary people fill in particulars on social media such as their age, gender, and employment status without a second thought, marketers and advertisers would happily pay a high price for the sale of such information to them — and companies who own this information are more than happy to “sell” them. China’s tech giants, such as Alibaba, have benefitted from the wealth of personal data they have access to. Increasingly invasive collection of personal data, illegal sale of personal data and other malicious practices has seen a worrying rise, with businesses requiring information such as personal identification number, marital status and other unnecessary details for something as simple as registering a membership card for a particular store. With that, as of today, Beijing has passed the bill for Personal Information Protection Law (PIPL), which starts from November 1st 2021, partially in hopes of regulating the amount of power various tech giants hold, as well as protecting the interests of the common people. 
 

The PIPL will be the first comprehensive set of laws of regulations governing the collection and usage of personal data in China. This will ban various predatory practices, such as “Big Data Swindling”, which causes old customers to face exorbitant prices for a product or a service compared to new customers. Applications would not be allowed to automatically assume that the consumer has opted for personalized advertising as default, or at the very least, they will have to provide short and obvious avenues to disable such personalization. Individual consent would be required for usage and collection of information such as biological data, financial accounts and more. In terms of employment, this greatly reduces the room for exploitation in areas such as job-search; imagine a job-seeker innocently searching for a job on a website which utilizes the power of AI and personal data — what they do not know is that the website has already gained access to information that suggests that the job-seeker is in dire straits, financially speaking, and is desperate for a job. Or that the job-seeker is a green youth, fresh out of university and in need of employment. The AI thus pushes lower paying, potentially predatory jobs that offer less benefits, in hope that someone would be desperate enough to take it up, instead of more high paying jobs. Of course, this article is not an accusation that this is happening, but merely pointing out the room for exploitation excessive usage of personal data can lead to. The point is, increased regulation on personal data benefits all by ensuring fairer chances and more equality, extending to areas of employment. 
 

Similar to other regions like Hong Kong and Singapore, with their own laws governing personal data in place, employers and headhunters hence would have to be more careful when collecting and using data for recruitment and management of employees. Employers could look at practices in place in these areas for references to measures that could be taken in order to safeguard employee and potential candidates’ personal data, or perhaps consult our legal advisory in handling these issues. 

References: 

http://www.npc.gov.cn/npc/c30834/202010/569490b5b76a49c292e64c416da8c994.shtml 

https://baijiahao.baidu.com/s?id=1708579473848438549&wfr=spider&for=pc

http://www.xinhuanet.com/politics/2021-08/17/c_1127768239.htm 

https://www.cnbc.com/2021/08/20/china-passes-key-data-protection-law-as-regulatory-scrutiny-increases.html

Singapore: Relaxation in Foreign Worker Hiring Rules

As a small country scarce in resources — in all senses of the word— Singapore relies heavily on manpower and a smart economy for the country to function. Unfortunately, as with the common trend in many developed countries, Singapore also faces low birth rates, so low that it is insufficient to replace the ageing population. In lieu of that, nearly half of Singapore’s population is made up of foreigners, with people engaging in sort of work, such as expats occupying executive positions, or laborers working away at construction sites. Naturally, in order to protect local interests and livelihoods, the Singaporean government has put in place laws that limit the number of certain work permits that are given out to foreign labor, as well as adjusting the quota according to the needs of the economy and the general circumstances.

With that being said, Singapore has temporarily relaxed foreign hiring rules, in particular for foreign workers in the construction, marine shipyard and process (CMP) sectors, in a move to ease the labor crunch Singapore is facing currently. Instead of immediately being repatriated upon the termination of their labor contracts, experienced workers are now given the allowance of up to 30 days to find a new job under a different company. Other restrictions such as validity of work-passes, requirements placed on the minimum portion of higher skilled foreign workers under a company, and skipping of Stay Home Notice periods for talents arriving from certain countries are all moves made to retain foreign labor to the greatest extent possible under Singapore laws.

All of the above applies to the CMP sector. For foreign workers, or expatriates, the situation in Singapore remains grim. According to a Ministry of Manpower data, the number of employment passes (only issued to professional roles paying above 4500 SGD) issued in 2020 fell by 8.6% from the previous years, and with the country intermittently tightening pandemic measures, relaxation of hiring laws may not fall upon expatriates and foreign highly paid professionals yet.

Article referenced:

https://www.businesstimes.com.sg/government-economy/singapore-to-temporarily-relax-foreign-worker-hiring-rules-mom

https://www.bloomberg.com/news/articles/2021-07-29/singapore-s-angst-over-expats-forces-simmering-political-debate

Malaysia: a Hidden Gem for Tech Talents

Despite recent developments such as worsening of the covid-19 situation, Malaysia still remains a land ripe with opportunities, if one knows where to look. In the case of graduating students, they find themselves in a dilemma: how should they find a job? Covid-19 has already ravaged the economy ever since 2020, and compared to the last quarter of 2019, under-employment rate actually rose by 35.8%, too many brilliant talents are going to waste before the very eyes. Youth unemployment rate has also risen to 12%, nearly 5 times worse than the middle-age category. The epidemic has also resulted in many job roles unfulfilled, the importance of jobs that offer remote working as well as working from home arrangements are also increased. Thus, even in their job search, they would likely pay attention to jobs offering work from home arrangements too.

Hailing from universities such as the University of Malaya and the National University of Malaysia, which offer courses that cover tech-related courses such as engineering, information technology and AI technology, these graduates are tech talents ready to be hired by the workforce, all thanks to foundations laid out by the Malaysian government in digitalization, in preparation for the “Fourth Industrial Revolution”. Yet, a tough labor market and a subsequent surge in difficulty in gaining employment are causing these talents to go to waste, hence turning them into “hidden gems”. Not only do they have the skills, a lifetime of growing up in a multilingual environment has enabled Malaysians to master two or even more languages, depending on their ethnicities and upbringing. Malaysian Chinese also have access to one of the most complete Chinese-medium education beyond China, allowing them to have mastery over the language. They are thus ideal candidates for companies who may be working and interacting heavily with Chinese clients. Pro-Bumiputera policies have also encouraged them to expand their horizons in terms of job search, with many Malaysian Chinese gaining employment across the border, in Singapore. Overall, Malaysia provides a rich pool of tech talents, ready and looking for employment.

However, in lieu of policies and restrictions on the number of foreign workers allowed in the workplace, especially in Singapore, how should one get around to hiring Malaysian talents? Link Compliance’s PEO (Professional Employment Organization) services may be what you’re looking for. We can serve as the EoR (Employer on Record), allowing clients to hire across borders, stretching the potential of remote-working to the fullest. The tech crunch in Singapore also means that tech talents in Malaysia are a viable alternative, in terms of reduced cultural and language differences too. So what are you waiting for? Consider hiring tech talents from Malaysia, dust off the hidden gems, and kill two birds with one stone today.

Singapore: Unemployment and Retrenchment in 2Q 2021

A peek into the advanced release of the Labor Market Report by Singapore’s Ministry of Manpower (MOM) has offered some insight to employment growth in the second quarter of 2021. As of now, estimates show that there is an increase of resident employment growth. However, it is expanding at a declining growth rate.  

Phase 2 (Heightened Alert) as an impact 

From 16 May to 13 June 2021, Singapore reverted to Phase 2 (Heightened Alert) restrictions due to new clusters of COVID-19 infections. Inevitably, tightened measures have its impact on businesses and declines are reflected in sectors directly affected by the reversion such as the food and beverage as well as retail trade industries. Non-resident employment also continues its downward trend due to on-going travel and border restrictions, causing the total employment excluding Migrant Domestic Workers to decline overall in 2Q 2021.  

Looking forward, MOM permanent secretary Aubeck Kam also mentioned that the reimposition of Phase 2 (Heightened Alert) in late July 2021 might potentially weaken the labor market in the third quarter of 2021 as well. 

Unemployment rates ease up 
Positively, the unemployment rate is observed to be moving in a stable fashion as it eased further in June 2021.  

  • Overall unemployment rate: 2.8% to 2.7% 
  • Resident unemployment rate: 3.8% to 3.7% 
  • Citizen unemployment rate: 4.0% to 3.8% 

From 95,500 unemployed residents in March, the figure has decreased to 86,600 in June. Though the unemployment rate is not back to pre-Covid levels, this stability is a positive sign of recovery. 

Retrenchment rates rose in 2Q 2021 
Retrenchment rates were observed to have increased slightly in 2Q. Based on MOM’s survey, about 2,500 retrenchments happened in 2Q, compared to 2,270 in the previous quarter. The rise was attributed to layoffs in the manufacturing and construction sectors. Services sector still takes a large slice of the pie but has since improved from the previous quarter (1,500 from 1,930). Despite the slight uptick, the retrenchment numbers are still observed to stay within pre-pandemic levels. 

The Labor Market Report 2Q 2021 will be released in mid-September 2021, where a fuller picture of the labor market specific to sector breakdowns will be observed. Stay tuned to our news page as we continue to bring you updates on the labor market across Singapore, Hong Kong, China and Malaysia. 
 

This article is written with reference to: 

https://stats.mom.gov.sg/iMAS_PdfLibrary/mrsd-LMAR-Q2-2021.pdf

https://www.businesstimes.com.sg/government-economy/singapores-total-employment-down-in-q2-on-covid-19-curbs-but-unemployment-rates

Vaccination & The Rights of An Employee: A Look at China & Singapore

The pandemic has been going on for a while now, and with new variants, stronger and more infectious than ever, there seems to be no return to full normalcy in sight. Fortunately, the push for vaccinations around various (mostly) developed countries around the world has given the government and corporations an avenue to get the economy back in session again. Legislations constantly evolve to determine the boundaries of business activity one is allowed to carry out, including whether the working population is to resume working from home. These limits are based on vaccination rates as well as perceived severity of the on-going pandemic, which begs the question: to what extent does the company have control over the employee’s medical history, and whether vaccination status would affect employability and ability to carry out work? Questions like “Can employers force employees to get vaccinated?” would be asked. Let Link Compliance guide you through a short analysis of labor laws in China and Singapore, and the perspectives as a result.  

China  

Vaccination is voluntary on an individual basis in China. However, those in high-risk professions would be required to get vaccinated, such as frontline medical staff. Still, would employers be able to retrench someone on the basis that they chose not to get vaccinated?  

The short answer is: No. 

China is well-known for its strict laws on termination of labor contracts, and termination on the basis of lack of vaccination would be easily disregarded and thrown out. In scenarios such as having 99% of other employees already being vaccinated, terminating the 1% of employees who out of personal or medical reasons could not be vaccinated would be unlawful, and firms would be subjected to heavy penalties for breaking labor laws. In other scenarios, such as being frontline medical staff or air travel where being fully vaccinated is the only feasible way to carry out work without causing covid-19 clusters, then a refusal to cooperate and get vaccinated would be seen as deliberately going against company regulations as well as endangering other people. Employers would be entirely justified in terminating labor contracts with such employees. 

Singapore 

Singapore’s approach in regards to covid-19 and vaccination and the workplace are based on this: the onus falls on the employers to take measures that ensures the health and safety of their employees to the greatest possible extent, all while vaccination is voluntary on an individual basis. Thus, employers have to make sure frontline medical staff, with close and frequent contact with covid-19 patients, are sufficiently vaccinated before they can carry out their work to the greatest degree of safety possible. Meanwhile for other sectors, for example the tech sector where remote working is still in place, employers do not have the right to force an individual to take up vaccination. While employers may strongly encourage employees to disclose their vaccination status, employers will have to note that they have no legal grounds to do so. However, work arrangements such as allowing only fully vaccinated employees to physically return to the workplace does not fall under discrimination, as employers would simply be looking out for the health of their employees the best as they could in this case. Tracking of vaccination records per employee will also have to follow PDPA (Personal Data Protection Act), which means additional administrative hassle. In short, though nothing is legally enforced, employers still have a certain degree of power and responsibility, such as preventing non-vaccinated employees from returning to the workplace until it is deemed to be safe enough to do so, or being able to request employees to declare their vaccination status. 

All in all, it is clear that while vaccinations are voluntary, both countries have their own ways and reasoning in how they handle covid-19 and the workplace. Employers would have to be aware of local laws and regulations in the actions they could take in regards to the vaccination of employees or the lack thereof, and consulting legal advice on what they are and not allowed to do would never hurt. In general, it is also advised that an individual should go for vaccination if medically possible, as an act of personal responsibility in this pandemic.
 

Articles referenced: 

http://www.gov.cn/banshi/2005-05/25/content_905.htm  

https://www.sohu.com/a/470930194_121119529

https://www.mom.gov.sg/covid-19/advisory-on-covid-19-vaccination-in-employment-settings

https://www.straitstimes.com/singapore/singapore-employers-cannot-require-staff-to-disclose-covid-19-vaccination-status

Increased Importance on China’s Electronic Labor Contracts

The covid-19 pandemic has accelerated certain developments in laws across countries all over the world. The need for social distancing and the need to reduce spreading has resulted in work from home arrangements, and this means that for some stepping into a new job, procedures such as the signing of labor contracts would have to take place online, hence the rise in need and usage of electronic labor contracts.

According to a report done in 2021, 15% of corporations have included electronic labor contracts as a part of their onboarding processes, taking up 36% of those with pre-existing online onboarding systems, a 140% increase from 2020. On a city level, Beijing announced that Beijing would be pushing forth a single unified platform for the management of electronic labor contracts for all companies in Beijing, joining other areas such as Qingdao, Zibo, Shenyang, Kunming, Guangzhou, Cangzhou, Guilin and Nanning. For companies operating in more than one part of China, the inclusion of unified platforms for electronic labor contracts on a per-city basis (what we are seeing so far) would surely mean more complications.

It was suggested that the contract itself should be defined by five major factors: clarity, preservability, whether it is distinguishable, and whether it is “true”. The last point indicates a need for non-falsification protections placed on digital documents, such as electronic signatures, security of access, and a whole slew of other factors that governance and employers will have to figure out.

This development further implies the likelihood of more regulations over the execution and the management of other electronic contracts, not just labor contracts.. The weaknesses of paper contracts have long since been a source of issues for many companies, such as its vulnerability to damage, high costs for cross-borders signing, and other factors. The increased implementation as well as regulation of electronic contracts are a relief to those bothered by the troubles of paper contracts.

In addition, remarkably, as a known testing ground for many new policies, laws have been experimentally introduced in Shenzhen for disputes over electronic labor contracts. Results from this test would likely determine the general direction the newly developed electronic labor contract laws the country would evolve towards.

So what does it all mean? It is inevitable that documents become digitalised, given the rapid evolution of modern technology, and covid-19 simply accelerated what is bound to come. For employers with employees located in China especially, these recent developments are a reminder to adjust company policies in order to adapt to said developments. For help with adjustments in lieu of changes in laws, do utilise our compliance advisory services for full compliance and a peace of mind.

Articles referenced: 

https://finance.sina.com.cn/tech/2021-06-22/doc-ikqciyzk1111567.shtml

http://www.xinhuanet.com/fortune/2020-05/18/c_1125997826.htm

On the Horizon: Changes in Hong Kong’s Employment Laws

Covid-19 may have caused countries all over the world to reevaluate certain aspects of their labour policies, as well as the transition into coverage and protection in this pandemic. However, this does not necessarily deter countries from making changes to their employment laws regardless of the covid-19 situation, and analysing them would help one understand the general trend and direction a country is heading towards. In this case, Hong Kong’s recent proposed changes to their labor laws is definitely noteworthy.

In effect: Extension of Maternity Leave

In an effort to support women and to add more incentives to have children, with effect from December 2020, paid maternity leave has been extended from 10 to 14 weeks, with the additional 4 weeks reimbursed from the government. Thus, employers should update their maternity leave policies accordingly.

In other related changes, further protection for breastfeeding women has been passed in the March 2021 Employment (Amendment) bill.

Proposed: Increase in Number of Statutory Holidays

Hong Kong is unique in its number of holidays and its differences — did you know that Hong Kong has separate statutory and public, or also known as, general holidays? Employees are entitled to paid day leaves on statutory holidays, while general holidays outnumber statutory holidays by 5 days, with overlaps. Which is to say, 12 out of 17 general holidays are statutory holidays, while employees are not entitled to paid day-offs for the remaining 5.

In March 2021, the Hong Kong government had gazetted the Employment (Amendment) Bill 2021 to increase the number of statutory days to match the number of general holidays, by increments of one day every two years, until the year of 2030, when the change would be completed.

In the event that this change is executed, employers will have to be aware that their employees are now entitled to more paid leaves than before, and plan the company’s work schedules accordingly. The workforce would have been given time to adjust to these changes throughout the 8 years, and so the changes shouldn’t take anyone too much by surprise.

Proposed: Strengthening of Data Protection Laws

Personal data has become an increasingly valuable asset in the age of modern technology, while also easily abused for nefarious purposes. Employers should pay special attention to the proposal to strengthen data protection laws, as the handling of employee data would most certainly be affected. To stay fully compliant and save costs on hefty legal fees resulting from mishandling of personal data, it is important to always keep an eye on such changes.

Overall

Once a British colony, and now part of China, Hong Kong’s laws have been observed to be shifting to resemble more of China’s. These changes however are progressive changes, putting increased importance on the welfare of the workforce, as seen for the added protection of (pregnant, and breastfeeding) women, tightened security for personal data, and the increase in paid leaves in the form of additional statutory holidays. Perhaps welfare would continue to be in the spotlight of labor laws, with the increased importance on mental health taking place in developed countries too. Adding more welfare for employees would surely be a popular choice among employees, while keeping in line with the general direction these recent changes seem to be set in. For advice on HR policies as well as changes one should make in regards to employment laws, do keep our compliance advisory services in mind.

Articles referenced:

https://www.labour.gov.hk/eng/news/EAO2020.htm

https://www.info.gov.hk/gia/general/202103/05/P2021030300341.htm

Singapore’s Tech Crunch

Singapore is one of the world’s best seaports, a business hub in the region. However, Singapore has also set her eyes on transforming into one of the world’s top technology hubs. With tech giants such as Bytedance, Zoom, Grab expanding in the region, the tech recruitment scene should absolutely be bustling to the brim with young, bright talents…that is, until one realises that Singapore is currently facing a tech crunch.

What happened?

Singapore has taken measures to become a technology hub, such as various “Smart Nation” initiatives that aim to integrate advanced technology into daily living. Singapore’s world class quality infrastructure and top tier security has also attracted many major companies to the region, drawing flocks of talented people too. However, due to employment laws that aim to safeguard the livelihoods of locals, which restricts the number of foreign talents that could be hired per company, along with the declining local population, many tech companies find themselves lacking in people to hire for their respective technology related job roles. Despite competitiveness for engineering and computer sciences in local universities increasing, many roles are still left unfilled, and recruiters reported having to search for months before they could find someone to fill the roles.

On the other side of the issue, job seekers have reported seeing stringent low pay for entry-level positions with high requisites, and certain sectors have been reported to be overwhelmingly filled with a skewed ratio of foreigners to local citizens. However, even that is changing as covid-19 has impeded global travel, including the commuting of foreign talents to Singapore, and so companies are in need of more local employees than ever. Hence, it is suggested that companies’ recruitment efforts should reflect the strength of their need for tech talents, and offer attractive salaries and benefits, in order to attract local talents. For exclusive delves into the hidden gems of the local tech scene, companies can consider utilising our recruitment solutions, where we specialise in hiring tech talents.

Hong Kong’s road to recovery: Slowly, but surely

It has been a long, drawn-out year with the fight against the global pandemic, and as the world shifts its gears to adapt to the new normal, there are finally more optimistic signs observed. Hong Kong, where the unemployment rate in 2020 suffered due to both political protests and the impacts of the pandemic, is finally on a gradual track to recovery.

On 20 July 2021, Hong Kong’s Census and Statistics Department revealed that the unemployment rate has dropped sharply to 5.5% for the 3 month period ending in June. Since the beginning of the pandemic in 2020, this is the lowest the unemployment rate has been. A closer look at the labour market across sectors has also confirmed that unemployment dipped across almost all the major business areas. This is even inclusive of sectors that were severely impacted by the impacts of the pandemic, such as the retail sector, in which the unemployment rate declined by 1.4 percentage points. 

Though figures still remain below pre-Covid rate, joblessness in many business services sectors such as real estate, insurance, and even retail, accommodation and restaurant sectors have dropped in tandem with the improvement of the economy. Data shows that In industries like finance, the number of people acquiring jobs has even grown.  

Undoubtedly, Hong Kong’s local economy is gaining momentum and it is on track to a gradual recovery. Given Hong Kong’s vaccine bubble scheme and the easing restrictions, the local epidemic situation is stabilising and businesses are slowly picking up and starting to hire again. It is still expected for the economic growth to continue experiencing volatility, but as of now, it is still a positive checkpoint for Hong Kong. 

If you are looking to expand your business services to Hong Kong, click here to be redirected to our PEO solutions service page. Connect with our consultants to get a deeper view of Hong Kong’s market outlook today.

This article is written in reference from:

Cannix Yau. (2021, July 20). Hong Kong unemployment rate drops to 5.5 per cent as city brings Covid-19 situation under control. Retrieved July 22, 2021, from South China Morning Post website: https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3141811/hong-kong-economy-gathers-steam-unemployment-drops

Malaysia’s MCO: a necessary price to pay?

In the global fight against the COVID-19 pandemic, Malaysia is one of the countries to face a brutal struggle. Fast forward from the start of the pandemic up until today, Malaysia is currently at their 3rd Movement Control Order (MCO), which is a nationwide cordon sanitaire measure to flatten the curve from the third wave of the virus in their homeland. In essence, all economic sectors are allowed to operate, but cross-district and interstate travel, and social/sports activities are strictly prohibited. 

Today, Malaysia’s unemployment rate stands at 4.8%, with the number of unemployed people jumping over 63% in 5 quarters. It is a crisis in itself, with the vicious cycle of businesses struggling to survive and the bleak job prospects in the market worsening the situation. In a study from official data, skill-related underemployment has reached an all-time high at 38%, highlighting the rising desperation of people having to turn to jobs beneath their skillset.

The pandemic has greatly depressed the employment outlook, with an increasing number of graduates unable to secure jobs and uncertainty continues to loom. As of now, even wage-boosting interventions have failed at compelling the labour market to generate higher productivity jobs. With survival at the forefront of businesses’ concerns, a lot more has to be done to extend support to these struggling businesses. As of 28 June 2021, the Malaysian Government has rolled out the Pemulih Stimulus Package, which is a 150 billion-ringgit fiscal spending initiative in the form of unemployment assistance, cash aids and wage subsidies. In this, special grants and support for small and medium-sized enterprises are also included.

Undoubtedly, Malaysia is in a crutch trying to balance the effects of shuttering sectors while shouldering the impact on their economy. However, at all costs, Malaysia is refusing to revert back to MCO 1.0, which is a full COVID-19 lockdown with all sectors shut. Malaysian Prime Minister Muhyiddin Yassin has firmly explained the risks of doing so, with the threat of a collapsing economy at the forefront. Thus, despite the calls for stricter curbs on the MCO, it is a fragile situation that needs careful management.

If you are looking for a job or talent prospects in Malaysia, you’re in the right place. Connect with our consultants to let them help you find a footing amidst the uncertainty in the Malaysian labour market. Click here to be redirected to our services page for more information.

This article is written with reference from:

Falak Medina, Ayman. “Malaysia’s Pemulih Stimulus Package: Supporting Businesses and Individuals.” ASEAN Briefing, 30 June 2021, www.aseanbriefing.com/news/malaysias-pemulih-stimulus-package-supporting-businesses-and-individuals/. Accessed 13 July 2021.

Hirschmann, R. “Malaysia: Skill-Related Underemployment Ratio.” Statista, Statista, 2 June 2021, www.statista.com/statistics/1240959/malaysia-skill-related-underemployment-ratio/. Accessed 13 July 2021.

Lee Hwok Aun. “Barring Failures to Contain Potential COVID-19 Waves, Malaysia’s Economy and Labour Market Look Poised to Recover, Says a Researcher.” CNA, CNA, 18 Apr. 2021, www.channelnewsasia.com/news/commentary/malaysia-economy-recovery-covid-19-mco-jobs-employment-market-14634452. Accessed 13 July 2021.