At a glance
- On 18 June 2025, the Legislative Council passed the Employment (Amendment) Bill 2025 (Bill), under which the Employment Ordinance will be revised to replace the ‘418’ rule with a ‘468’ rule.
- The new rule will take effect from 18 January 2026.
- 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.
- Employers are advised to consider whether any changes to their hiring structures or contractual terms will be required.
In an update to our earlier article, on 18 June 2025, the Legislative Council passed the Bill which will implement an amendment to the Employment Ordinance to revise the meaning of a 'continuous contract'. The amendment will take effect from 18 January 2026.
The amendment, which replaces the ‘418’ rule with a ‘468’ rule, aims 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.
On the other hand, it 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 consider whether any changes to their hiring structures or contractual terms will be required. They are also advised to start identifying who will become entitled to additional employment benefits when the amendment comes into effect and planning the actions required to address these.
More to explore
