Hong Kong: Proposed relaxation to the continuous employment ‘418’ rule

What’s new?

Hong Kong’s Labour Department has proposed changes to the ‘418 rule’ which determines ‘continuous employment’, specifically the method by which “qualifying hours” are calculated. This is aimed at increasing the number of employees who are under a continuous contract, and therefore are entitled to more benefits such as (amongst others) statutory holiday pay, paid annual leave, sickness allowance, severance payment and long service payment.

The bill implementing the proposed changes is still under review and is due to be tabled before the Legislative Council soon.

What are the key changes?

The ‘418 rule’ currently states that an employee who has worked for the same employer for a consecutive period of four or more weeks and worked at least 18 hours per week, is under a continuous contact of employment.

The proposed change is that employees’ qualifying hours will be calculated using their total hours across the aforementioned period, instead of on a week-by-week basis, and the total hours threshold will be decreased to 68 hours. Therefore, if the bill is passed, an employee would be under a continuous contact of employment where they have worked at least 68 hours for the same employer over a four-week consecutive period, and will therefore entitled to the benefits mentioned above.

So, what should employers do now?

Employers should monitor the proposed changes to the ‘418’ rule and consider how this may impact any employees and their benefit entitlements. If you need any support with this, or would like any further information, please get in touch with a member of the MDR ONE team.

Article

Resource Centre

abstract glass building
Article

Introducing AI in the workplace in France

For the first time, a French court has addressed an employer's use of Artificial Intelligence (AI). The court declared that the introduction of AI tools as a pilot phase, including the training of employees on how to use the tools, went further than mere 'experimentation' and triggered the requirement to consult with their works council beforehand.
View
Download

Data protection impact assessment checklist

This checklist is designed to guide you through the steps of conducting a DPIA, ensuring that you not only comply with the UK General Data Protection Regulation but also integrate best practices into your data processing activities. It will assist you in determining when a DPIA is necessary, how to carry it out effectively, and what measures to take following the assessment.  
View
Article, Legal Updates

Poland: New additional leave for parents of premature babies or babies ill at birth

With effect from 19 March 2025, parents of babies born prematurely or newborns who must be hospitalised after birth due to health complications are entitled to additional leave.
View
Article

MDR ONE launches international privacy offering

This service is part of Mishcon de Reya's broader innovation offering and complements MDR ONE’s existing international employment law services. It offers centralised global privacy law support to multinational companies, empowering in-house counsel to manage their global legal operations effectively. This addition will enhance the MDR ONE proposition and provide a one-stop shop for global privacy support.
View
I'm looking for advice


Subscribe to our mailings


MDR ONE
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.