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Hong Kong: Planned Reduction in Minimum Weekly Hours for ‘Continuous Contract’ Eligibility

By - - Employment contracts, Employment Law, Working time

A new bill is currently under consideration  (the “Bill”) which seeks to enhance labour protections by making it easier for employees to qualify as being under a “continuous contract”.

Current Requirements

Under the existing rules, an employee is considered to be on a “continuous contract” if they work for the same employer continuously for at least 4 weeks, and work no less than 18 hours per week during each of those 4 weeks. This is commonly referred to as the “4-18 requirement.”

Basic vs. Statutory Protections

All employees are entitled to basic protections, regardless of hours worked, including:

  • Timely payment of wages;
  • Limits on wage deductions;
  • Entitlement to statutory holidays.

However, employees meeting the 4-18 threshold are entitled to additional Statutory Benefits, including:

  • Maternity and paternity leave;
  • Rest days;
  • Severance and long service payments;
  • Sickness allowance;
  • Holiday pay;
  • Paid annual leave.

Employees who fall short of the 18-hour weekly requirement are excluded from these benefits.

Proposed Amendments

The Bill introduces two key changes aimed at expanding access to Statutory Benefits:

  1. Lowering the weekly threshold from 18 to 17 hours.
  2. Introducing an aggregate threshold, meaning employees who work a total of 68 hours or more over any 4 consecutive weeks will also qualify, even if weekly hours vary.

This flexibility aims to cover employees with fluctuating work schedules, who might otherwise miss eligibility due to a single low-hour week.

Implications for Employers

Currently, some employers structure part-time work below the 18-hour mark to avoid triggering Statutory Benefit obligations. If the Bill passes, more employees will cross the revised thresholds.

Employers should:

  • Review and update employment contracts and scheduling practices to reflect potential changes.
  • Track employee hours carefully to ensure compliance with any new obligations.

Failure to provide Statutory Benefits to eligible employees may result in civil liability and potential criminal penalties.

This is a high level general update only. Legal advice should be obtained on specific circumstances.
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