Cross-boundary commute — a long hard stretch

Commuter workers rising

Crossing borders to work and live isn't uncommon worldwide. It's prevalent between the United States and Mexico, and the US and Canada, as well as countries within the European Union, where people living in Poland and working in Germany, mainly in the construction industry, made up the bulk of cross-border commuters within the EU in 2019.

The pool of Hong Kong-Shenzhen commuter workers has swelled in recent years as cross-boundary marriages shot up in view of the deepening social and economies ties between the two places. According to the latest figures from law firm Deacons, among the approximately 50,000 marriages registered in Hong Kong each year, about one-third involve Hong Kong-mainland couples.

The "one-hour living circle" concept promoted within the Guangdong-Hong Kong-Macao Greater Bay Area has further lifted the number of cross-boundary commuters — mainland graduates staying and working in Hong Kong, as well as Hong Kong residents having close business ties with mainland companies.

"Prior to the pandemic, commuting between Hong Kong and Shenzhen had been much simpler. But with the strict travel control measures now in place, a line has been drawn between the two cities," said Shen Jianfa, a professor with the department of geography and resource management at the Chinese University of Hong Kong.

He called the pandemic a "sudden crisis" and a "particular episode". But everything should be back on track in the post-pandemic world and the "one-hour living circle" is likely to accelerate the flow of people in the Bay Area.

With the "one-hour living circle", he expects the number of commuter workers to continue rising after COVID-19 is gone. "Normally, there're more commuter workers living in Shenzhen and working in Hong Kong as the living cost in Shenzhen is much lower than Hong Kong's. Looking ahead, the number of commuter workers will still depend on the dynamic relationship between living costs and income levels in both places," said Shen.

He believes companies will not see cross-boundary commuters in an unfavorable light in staff recruitment as they'll not take cross-boundary commuting as a key factor in job applications. However, some workers did lose their jobs due to travel problems amid the pandemic as they couldn't make it to the office on time.

George Huang settled down in Hong Kong with his family through the Quality Migrant Admission Scheme in 2014. He was hired by a company in Shenzhen in 2019, and had to commute regularly between the two places.

Since the pandemic broke, Huang had been working from his home in Hong Kong for a while. But when he returned to his Shenzhen office in March last year, he was told he had been sacked on the grounds that he had failed to show up while all of the company's employees were required to start working in the office from late February.

Huang was upset his company had never discussed the matter with him. He has appealed to the Shenzhen labor and human resources disputes arbitration committee, seeking compensation.

The COVID-19 shock has created a whirl of problems for employees and employers alike, especially when cross-boundary matters are involved. If home-office or flexible working were to be the norm post-pandemic, more issues could arise concerning visas, taxes, payrolls and insurance for workers who need to commute.

Accounting firm Ernst & Young called the situation a "perfect storm", referring to the combination of remote working and cross-boundary employment problems.

In Huang's case, he lived in Hong Kong and worked in Shenzhen before the pandemic. Under mainland laws, he only has to pay taxes in Shenzhen as long as he does not spend time working in Hong Kong. If he does, he and his employer would risk being hit with a bill from the tax and social insurance authorities. But would his time spent working at home due to the pandemic be considered as days worked in Hong Kong and be taxed in the SAR?