Hong Kong Statutory Update: From the “418 Rule” to the New “468 Rule” for Continuous Contracts

Effective Date: 18 January 2026

Source: Hong Kong Employment Ordinance Starting 18 January 2026, Hong Kong’s Employment Ordinance will adopt a new definition of continuous contracts shifting from the long-standing “418 rule” to the new “468 rule.” This change aims to make statutory employment protections more inclusive, particularly for part-time and irregular workers.

What’s Changing?

Under the previous “418 rule,” an employee was considered to have a continuous contract if they worked:

• For the same employer for at least 4 consecutive weeks, and

• 18 hours or more in each of those weeks.

Employees who met this condition were entitled to statutory benefits such as:

• Paid statutory holidays

• Annual leave

• Sickness allowance

• And other employment protections.

The new “468 rule” introduces more flexibility in how working hours are calculated.Now, an employee will qualify if they have:

• Worked for the same employer for at least 4 consecutive weeks, and

• Accumulated a total of 68 working hours across those 4 weeks.

This means the law now considers total hours over a 4-week period rather than requiring 18 hours every week.

Impact on Employers

This update significantly broadens the scope of employees entitled to statutory benefits.

Key implications for employers:

• More part-time and irregular employees may now qualify for statutory entitlements.

• HR and payroll systems must be updated to track total hours across rolling 4-week periods.

• Employment contracts should be reviewed and adjusted to ensure compliance.

• Payroll and HR teams will need to monitor entitlements more closely to avoid non-compliance risks.

  
  

Impact on Employees

For employees particularly part-time and casual staff this change brings a welcome improvement:

• Easier qualification for statutory holidays, annual leave, and sickness allowance.

• Greater fairness for workers with fluctuating or flexible schedules.

• Inclusion for employees who previously fell short under the stricter weekly hour rule.

Next Steps for Employers

1. Audit your workforce: Identify employees who may newly qualify under the 468 rule.

2. Update HR systems: Ensure total hours are being tracked over rolling 4-week cycles.

3. Review contracts: Align working terms and payroll calculations with the new legal standard.

4. Train managers and payroll staff: So they understand the new compliance thresholds.

Useful Resources

• Labour Department Announcement

• Education Tool on the New Continuous Contract Requirements

  
  

Conclusion

The move from 418 to 468 marks a significant step toward modernizing Hong Kong’s labour laws reflecting a more flexible and inclusive employment landscape. Employers are encouraged to act early to ensure systems, policies, and contracts are ready before the law takes effect in January 2026.

For inquiries or compliance support, reach out to our Hong Kong payroll experts at ePayslip.