Hong Kong has made an important change to the Employment Ordinance that redefines what counts as “continuous employment.” This amendment was passed by the Legislative Council on 18 June 2025 and formally gazetted on 27 June 2025. These changes will take effect on 18 January 2026. The update aims to make the law fairer and more practical for modern work arrangements. Government welcomes passage of Employment (Amendment) Bill 2025
From the Old Rule to the New Rule
Previously, under the “418 rule,” employees had to work at least 18 hours per week for four consecutive weeks with the same employer to qualify for statutory benefits. If an employee worked fewer than 18 hours in any week, the continuity was broken. This strict requirement often excluded part-time and casual workers from benefits.
The new “468 rule” introduces flexibility. Employees will now qualify if they work for the same employer for four consecutive weeks and either complete 17 hours or more each week or reach a total of 68 hours across those four weeks. This means occasional short weeks will no longer disqualify someone, as long as the total hours meet the requirement. The change reflects Hong Kong’s effort to adapt to part-time, gig and shift-based work patterns.
Why This Matters
The impact of the new rule is substantial. Employees in part-time, casual, gig or shift-based roles—who often fluctuate week to week in hours—will now find it significantly easier to qualify for statutory benefits such as paid annual leave, statutory holiday pay, sickness allowance and maternity or paternity leave.
According to the Hong Kong Labour Department, the new “continuous contract” requirement will apply from 18 January 2026, while employment periods before that date remain subject to the old “418” rule.
What Employers Need to Do
Employers are expected to prepare for this change before January 2026. They should review employment contracts to ensure compliance with the new rule and update payroll and HR systems to track cumulative hours over four-week periods. Training HR teams and managers on the revised eligibility criteria is essential, along with clear communication to employees about how the change affects their entitlements. Employers should also plan for potential cost increases, as more part-time and casual staff may now qualify for benefits such as annual leave, holiday pay and sickness allowance. Failure to comply could lead to penalties under the Employment Ordinance and disputes over benefits.
Leap29 Perspective
“This shift from the “418” to the “468” rule strikes me as a thoughtful and timely update to Hong Kong’s labour law—especially given the rise in flexible work and gig roles. Lowering the weekly threshold from 18 to 17 hours and introducing a cumulative 68-hour option over four weeks acknowledges the unpredictability of part-time schedules while ensuring workers still qualify for critical benefits like annual leave and holiday pay. For me, it’s reassuring to see the system adapt to real-world working patterns rather than forcing people into rigid molds” Simon Duff – Director Leap29
