At a glance
- Hong Kong is expected to change its Employment Ordinance, replacing the ‘418’ rule with a ‘468’ rule.
- The new rule will be more flexible, deeming that employees are working on continuous contracts if they work for an aggregate of 68 hours over a four-week period.
- It has yet to come into effect.
- Employers are advised to closely monitor developments and consider whether any changes to their hiring structures or contractual terms will be required.
Hong Kong is expected to change its Employment Ordinance, replacing the ‘418’ rule with a ‘468’ rule, to prevent exploitation of part-time, temporary, or casual workers.
The 418 rule currently provides that an employee who works for the same employer for at least 18 hours per week for four or more consecutive weeks is deemed to be employed under a ‘continuous contract’ of employment and thus eligible for certain benefits including statutory holiday pay and sickness allowance.
The new rule will be more flexible and instead deem that employees are working on continuous contracts if they work for an aggregate of 68 hours over a four-week period, potentially benefiting over 10,000 workers.
The change could increase operational costs for businesses, particularly in the retail, catering, and entertainment industries, which have a higher demand for part-time staff.
Employers are advised to closely monitor developments and consider whether any changes to their hiring structures or contractual terms will be required. The government has not announced any requirement to inform employees of the change, but employers are advised to identify who will become entitled to additional employment benefits when the amendment comes into effect.
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