Second catering group sanctioned for firing local staff after hiring imported workers

The Labour Department (LD) has imposed an administrative sanction on the operator of Chinese restaurant Ying Garden, withdrawing its approvals to import workers and barring the company from submitting new applications for two years after confirming it dismissed local staff shortly after bringing in imported labor.

The department announced on Wednesday that approvals-in-principle granted to Cheer Power Holdings Limited, which operates Ying Garden, under the Enhanced Supplementary Labour Scheme (ESLS) have been withdrawn with effect from December 1, 2025.

The LD will also “not process any applications for importing workers submitted by the company for a period of two years.”

The sanction follows a complaint alleging that the company dismissed local workers after hiring staff through the ESLS. LD investigations confirmed the allegation.

“The company’s violation of the requirements of the ESLS has been substantiated, and an administrative sanction is thus imposed,” the department said.

Under the ESLS, employers who violate labor or immigration laws, scheme requirements, or the Standard Employment Contract may face sanctions including withdrawal of importation approvals and refusal to accept future applications.

The LD reminded employers that they must give priority to hiring local workers and that, in the event of redundancy, “imported workers must be retrenched first.”

Second penalty in the catering sector

This is the second confirmed case in the catering industry involving sanctions under the ESLS.

In August, the Labour Department penalized Top One Dance Club & Chinese Cuisine, operated by Top One Dance Club Limited, after receiving a similar complaint that the restaurant had imported labor and subsequently dismissed local employees. The company was likewise barred from submitting new labor importation applications for two years.