Agencies stop recruiting Indonesian maids over tax confusion
Hong Kong - Labour agencies in Indonesia have stopped recruiting domestic workers for employment in Hong Kong because of confusion over plans by the government to suspend a training tax, a media report said Monday.
At least seven foreign domestic helpers were dismissed since the government decided to suspend the levy from September 1, the South China Morning Post said.
The government had yet to release details of its plans to suspend the 9,600 Hong Kong dollar (1,230 dollar) charge as part of a package of measures against inflation.
The levy is paid by families employing domestic helpers to the government to fund a programme to retrain local workers. Under the proposal, families would no longer have to pay the charge for a period of at least two years.
Officials have added to the confusion by saying the levy could be lifted in August rather than September.
Joseph Law, chairman of the Employers of Overseas Domestic Helpers Association, said: "The confusion in Hong Kong has spread to recruitment agencies. Hundreds of workers are staying at training centres run by recruitment agencies in Indonesia and are about to fly to Hong Kong. But they cannot since employers do not want to sign contracts with them now."
Up to 300 Indonesian workers will be affected and could be forced to leave the training centres.
Law added: "Agencies in Indonesia have to spend extra on lodging and food for these workers if they keep them at training centres."
Sari Canete, a project organizer at the Asian Migrant Worker Centre, said the seven maids were sacked by employers who wanted to avoid paying the levy.
"We received phone calls from seven workers who told us their contracts had been terminated. Their employers told them to take holidays and come back to Hong Kong in September," she said. (dpa)