The 468 rule, Hong Kong, introduces a new standard for determining “continuous contracts” under the Employment Ordinance starting from 18 January 2026. Employees qualify for continuous contract status if they work 17 hours per week for 4 weeks or 68 hours in aggregate for 4 weeks. This expands access to statutory benefits such as paid annual leave, sickness allowance, long service payments, and severance protections for thousands of part-time and irregular-hour workers.
For decades, the continuous contract Hong Kong status was based on the long-standing “4-18 rule.” Under this standard, employees had to work at least 18 hours per week for four consecutive weeks to be eligible for a continuous contract status. Though it’s simple, the rule often excludes part-time and irregular workers whose weekly hours occasionally dip just below the threshold.
That era officially ended when the Legislative Council passed amendments to the Employment Ordinance in 2025, introducing the 468 rule in Hong Kong, which came into effect on 18 January 2026. The rule reduces the weekly threshold to 17 hours and introduces a 68-hour aggregate timeline across 4 weeks, making it easier for employees with variable schedules to qualify for continuous employment protections.
Though this benefits employees, for employers, however, the transition brings in new compliance responsibilities. Organizations must now track working hours over rolling four-week periods and reassess which employees qualify for statutory benefits under a continuous contract. Let’s break down how the rule works in practice and what it means for businesses and part-time workers in Hong Kong.
The shift: From 4-18 to 468
Under the 4-18 rule, an employee had to work under the same employer for at least 18 hours per week for four consecutive weeks to be considered employed under a “continuous contract” as per the Employment Ordinance.
Once this threshold was met, employees became eligible for statutory benefits for part-time workers in Hong Kong, including paid annual leave, sickness allowance, statutory holiday pay, maternity/paternity leave, and severance or long-service payments. Under this rule, employees whose hours fluctuated slightly below the 18-hour weekly threshold, for example, retail staff, hospitality workers, and gig-style shift workers, often failed to qualify for continuous contract protections despite working regularly for the same employer.
Legal experts noted that:“The rigid weekly threshold meant employees with fluctuating schedules could easily fall outside the statutory protection regime.”
Introducing the 468 rule
To address this gap, the Hong Kong Legislative Council amended the Employment Ordinance, replacing the 4-18 rule with the 468 rule starting 18 January 2026. Under the new rule, employees can qualify for continuous contract eligibility in 2026 if they meet the following conditions:
- Requirement 1: 4 consecutive weeks of employment
- The employee must be employed by the same employer for 4 consecutive weeks, maintaining the original continuity requirement.
- Requirement 2: Minimum hours threshold
- Employees qualify if they meet either 17 hours per week for 4 weeks, or 68 total hours worked across the same four-week period.
The key difference here is the aggregated-hour calculation, which allows working hours to be counted across the entire 4-week period rather than strictly week by week.
This means that an employee who works fewer hours one week but more hours in another can still qualify for continuous contract protections as long as their total reaches 68 hours within the 4-week window. This new rule could extend statutory employment protections to more than 10,000 additional workers in Hong Kong, particularly those in industries with irregular schedules.
“The new 468 rule closes the loophole by using a four-week aggregate (68 hours) instead of a strictly weekly basis,” noted legal practitioners analyzing the reform.
What benefit does the new rule give?
The 68-hour aggregate test offers more scheduling flexibility than the old weekly threshold.
Let’s say an employee has the following weekly schedule:
- Week 1: 17 hours
- Week 2: 19 hours
- Week 3: 16 hours
- Week 4: 20 hours
Even though the employee worked 72 hours in total, they would not qualify for a continuous contract in Hong Kong under the 4-18 rule because two weeks fell below the 18-hour weekly threshold.
Under the 468 rule, however, the same employee would qualify because their total working hours exceed 68 hours across 4 weeks.
| Feature | 4-18 Rule | 468 Rule |
|---|---|---|
| Weekly hour threshold | 18 hours | 17 hours |
| Weekly consistency required | Yes | Not always |
| Aggregate calculation | Not allowed | 68 hours across 4 weeks |
| Worker flexibility | Low | Higher |
| Industries most affected | Retail, F&B, hospitality | Same sectors but broader eligibility |
Why the change?
A comparison of the 418 vs 468 rules shows broader changes in Hong Kong’s labor market. Policymakers recognized that the decades-old weekly threshold no longer matched the realities of today’s work arrangements, particularly in industries where schedules fluctuate from week to week.
Responding to irregular work patterns and the gig economy
Sectors such as food and beverage (F&B), retail, logistics, and hospitality all rely heavily on flexible, part-time work arrangements in Hong Kong’s service-driven economy.
In these industries, employers frequently rely on weekly scheduling, in which staff hours fluctuate based on demand, seasonal traffic, or shift availability. Under the old 4-18 rule, even a single slow week could interrupt eligibility for statutory benefits. The 468 rule attempts to show how service-sector scheduling actually works.
A government spokesperson explains that:“This amendment exercise lowers the working hours threshold of the ‘continuous contract’ requirement and introduces flexibility in the calculation of working hours, reducing the circumstances of disrupting the continuity of an employee’s employment because the working hours of a week occasionally fall below the threshold.”
Allowing working hours to be aggregated across four weeks means employees whose hours vary week to week can still meet the eligibility threshold.
Preventing intentional breaks in employment continuity
Another concern behind the reform was how the weekly 18-hour threshold could be used to interrupt eligibility for continuous contract protections. As the rule required employees to meet the minimum hours every week, even a single week below the threshold could break continuity. This created opportunities for strategic scheduling.
“Some employers intend to evade employment benefits, so they may ask their staff to work many hours in each of the first three weeks and fewer than 18 hours in the fourth week,” said Michael Luk Chung-hung, legislator from the Federation of Trade Unions (FTU).
In such cases, employees could still work substantial hours overall but fail to qualify for statutory benefits because the weekly threshold was not met in one week. The 468 rule addresses this issue by allowing working hours to be cumulated over 4 weeks, reducing eligibility’s dependence on weekly scheduling fluctuations.
Impact on statutory benefits
The new 468 rules modify the timeline for the employees to be considered under continuous contract eligibility. This helps them get the right benefits. But what benefits does it include? Let’s see that in detail.
- Statutory holiday pay: Employees employed under a continuous contract for at least 3 months are entitled to statutory holiday pay. If a statutory holiday falls on a scheduled workday, the employee must be paid their average daily wages.
- Paid annual leave: Employees who have worked under a continuous contract for 12 months become eligible for paid annual leave. Eligibility increases progressively: 7 days after the first year, then gradually increases to 14 days after 9 years of service.
- Sickness Allowance: Employees under a continuous contract in Hong Kong may receive sickness allowance when taking sick leave supported by a medical certificate. The allowance is paid at four-fifths of the employee’s average daily wages and is drawn from accumulated sickness allowance days.
- Maternity and paternity leaves: Eligible female employees are entitled to 14 weeks of maternity leave, provided they meet the qualifying conditions, including working under the same employer (for a minimum of 40 weeks) and giving the required notice to the employer. Calculation is based on four-fifths of the employee’s average daily wages.
Understanding Paternity Leave and Severance Pay in Hong Kong
Eligible male employees may also take statutory paternity leave, which provides 5 days of leave for the birth of a child. Similar to maternity leave pay, paternity leave pay is typically calculated at four-fifths of the employee’s average daily wages, subject to the conditions set out in the Employment Ordinance.
Severance and long service payments: Under Hong Kong’s Employment Ordinance, employees become eligible for a severance payment under a continuous contract if they have worked for at least 24 months and their employer dismisses them due to redundancy or lays them off.
Employees may also qualify for long service payment after completing five years or more of continuous employment, provided their employment ends under qualifying circumstances.
Employer tip
If you manage part-time or shift-based teams, accuracy in hour tracking becomes critical under the 468 rule in Hong Kong. You should track rolling 4-week hour totals, not just weekly hours, to identify when employees cross the 68-hour threshold and automatically become eligible for continuous contract benefits.
Failing to track this properly can expose businesses to unexpected statutory benefit liabilities and compliance risks under Hong Kong’s Employment Ordinance.
Compliance guide for employers
As the 468 rule has been in effect since January 2026, employers will need to adjust how they track working hours and evaluate eligibility for continuous contracts. Here’s how you can do it effectively:
- Record keeping: Employers need to maintain accurate records of all employees’ working hours, particularly for part-time and shift-based staff. Under the 468 rule, Hong Kong status can be tracked by looking at total hours worked over a rolling four-week period, so proper time tracking is critical to determining continuous contract status.
- Burden of proof: In case of a dispute, the employer must prove that an employee does not meet the continuous contract criteria. Without proper records, it may be difficult to determine whether the employee’s working hours did not reach the required threshold.
- Contract review: Employers need to review all current part-time and casual employment contracts to ensure compliance with the 468 rule. A review of current scheduling practices and employment terms can help identify workers who may now qualify for continuous contract status and ensure your HR policies reflect this accordingly.
How employers can stay compliant with the 468 Rule
Audit part-time employee schedules to identify employees likely to reach the 68-hour threshold. Update time-tracking systems to monitor rolling four-week working hours. Review employment contracts for part-time and casual workers. Train managers responsible for scheduling shifts, especially in retail or hospitality environments.
Final thoughts
The transition from the 4-18 rule to the 468 rule is one of the most significant updates to Hong Kong’s Employment Ordinance amendments in 2026. By introducing a cumulative 68-hour calculation over 4 weeks, the reform expands access to continuous contract protections for workers whose schedules fluctuate from week to week.
Over time, the rule will improve fairness and consistency in how statutory benefits are applied, while reducing instances in which employees narrowly miss eligibility due to weekly scheduling variations.
For employers, the shift also creates an opportunity to strengthen workforce policies, improve time-tracking practices, and ensure that employment arrangements remain compliant with evolving Hong Kong labor law.
It’s time for businesses to review their time-tracking systems, part-time employment contracts, and HR policies. Consulting with legal advisors or HR compliance specialists can help organizations understand how the updated rules apply to their workforce and ensure they are fully prepared for the transition.
