Hong Kong Adopts New “468 Rule” for Continuous Employment

Hong Kong’s Legislative Council has passed the Employment (Amendment) Ordinance 2025, officially revising the criteria for what constitutes a “continuous contract” under the Employment Ordinance. The updated requirement was gazetted on 27 June 2025 and will take effect on 18 January 2026.

Key Changes

Under the current “418 rule,” employees must work at least 18 hours per week for four consecutive weeks to qualify as continuously employed.

The revised legislation introduces two new thresholds:

417 Rule: Employees working 17 hours or more per week for four consecutive weeks

468 Rule: Employees working a total of 68 hours or more over any four consecutive weeks, regardless of how those hours are distributed weekly

Employees meeting either condition will be treated as being under a continuous contract.

Objective of the Amendment

The reform aims to provide better protection for part-time, casual, and gig workers whose hours may vary from week to week. By introducing a cumulative assessment method, the amendment helps ensure that workers are not excluded from employment benefits due to occasional short-hour weeks.

Statutory Entitlements Affected

Employees recognised as under a continuous contract will be entitled to:

• Statutory holidays and holiday pay
• Annual leave and annual leave pay
• Sickness allowance
• Maternity and paternity leave
• Severance and long service payments

Employees who already qualify under the existing “418 rule” will continue to be covered without interruption under the new framework.

Next Steps for Employers

Employers should begin reviewing their systems and employment policies to ensure compliance with the revised rules by the implementation date. Particular attention should be paid to tracking cumulative hours worked over rolling four-week periods.

This legislative change marks a shift toward greater flexibility and inclusivity in employment protections, in line with evolving work patterns in Hong Kong.

Source: Human Resources Online