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Proposed Change to the “418 Requirement” of the Employment Ordinance
Proposed Bill or Initiative
Author: Shiau Sang Tee, Of Counsel | Registered Foreign Lawyer – Littler
Hong Kong’s Employment Ordinance provides a range of employment benefits, including paid annual leave, sickness allowance, severance payment, long service payment, maternity leave, and paternity leave, to employees who have been employed under a “continuous contract” by the same employer for four weeks or more, working at least 18 hours per week. This is commonly known as the “418 requirement.”
On February 1, 2024, the Labor Advisory Board proposed relaxation of the 418 requirement so that employees will be considered employed under a “continuous contract” if they have worked at least 68 hours in four consecutive weeks for the same employer. In response, a bill will be introduced in the Legislative Council to amend the Employment Ordinance. In the meantime, employers should start considering the legal and financial implications that this proposed change may have on their workforce, particularly those who typically work shorter hours, such as part-time or casual employees.
