The “468 Rule” is Hong Kong’s updated legal threshold for determining a “continuous contract” of employment under the Employment Ordinance. Replacing the old “418 Rule,” it stipulates that an employee is entitled to full statutory benefits (such as paid annual leave and sickness allowance) if they work a total of 68 hours or more within a four-week period for the same employer. This change, effective January 18, 2026, removes the requirement to work 18 hours every single week, making it easier for part-time workers with irregular schedules to qualify for protections.
I. Introduction: The Evolution of HK Labor Law
The landscape of Hong Kong labor law is undergoing its most significant shift in decades. For years, the “418 Rule” served as the gatekeeper for employee benefits, but as the “gig economy” and flexible work arrangements blossomed, the old rigid framework became outdated. The transition to the 468 Rule is designed to modernize labor protections, ensuring that casual and part-time workers are not excluded from benefits simply because their hours fluctuate. The Legislative Council has officially passed the amendment, with a key implementation date set for January 18, 2026.II. The Core Differences: 418 vs. 468
Under the current system, the “418” threshold is notoriously rigid, often allowing employers to reset a worker’s progress toward benefits by reducing hours for a single week.- The 418 Rule (Current): Requires an employee to work 18+ hours per week for 4 consecutive weeks. If a worker puts in 20 hours for three weeks but only 10 hours in the fourth, the “continuous contract” clock resets to zero.
- The 468 Rule (New): This introduces an aggregate approach. As long as the total hours over a 4-week period ≥ 68, the contract is considered continuous. This removes the “18-hour-per-week” hurdle.
III. How to Determine Eligibility under the 468 Rule
Navigating the new rule requires a shift from weekly monitoring to a “rolling” four-week calculation.- Identify the Four-Week Cycle: Track all hours worked for the same employer over any rolling four-week period.
- Aggregate the Hours: Sum the hours from Week 1, 2, 3, and 4. It does not matter if one week has 40 hours and another has 5, as long as the total meets the mark.
- Compare to the 68-Hour Threshold: If the sum is 68 hours or more, the employee qualifies for a continuous contract.
- Maintain Status: Once an employee qualifies, they enter a “continuous contract” and remain protected until their aggregate hours over a rolling four-week period fall below the threshold.
IV. Expanded Benefits for Employees
Once an employee meets the 468 threshold, they transition from “casual” status to “continuous contract” status, unlocking a suite of statutory protections:- Paid Statutory Holidays: Eligibility usually begins after 3 months of service.
- Paid Annual Leave: Accrued based on the length of service.
- Sickness Allowance: Rights to paid sick days.
- Maternity/Paternity Leave: Protection from dismissal and rights to paid leave.
V. Compliance Guide for Employers
Preparation is key to avoiding legal disputes when the rule takes effect in 2026. Employers should focus on the following pillars:- Digital Record Keeping: Moving away from manual logs is essential. Using digital attendance systems will help track rolling four-week totals accurately.
- Payroll Integration: HR department software must be updated to calculate aggregate totals and automatically trigger benefit accruals.
- Budgeting for Overhead: There will likely be a significant increase in the number of part-time staff eligible for benefits. Businesses must account for these additional costs (leave pay, insurance, etc.) in their 2026 budgets.
- Legislative Specifics: Stay updated on the Employment (Amendment) Bill specifics to ensure your internal policies align with the Legislative Council’s standards.
VI. Frequently Asked Questions (FAQ)
Does the rule apply to existing employees?Yes. Once the law takes effect in January 2026, the hours worked by existing employees will be measured against the new 68-hour aggregate threshold.
What happens if an employee works 67 hours in four weeks?If the aggregate total is below 68 hours, they do not qualify for a “continuous contract” under the 468 rule, though they are still covered by the Minimum Wage Ordinance.
How does this impact the Minimum Wage Ordinance?The 468 Rule does not change the hourly minimum wage; however, it increases the total compensation for workers by adding paid leave and holiday pay on top of their hourly earnings.
VII. Conclusion
The “468 Rule” represents a progressive step toward workplace fairness in Hong Kong. By shifting from a weekly to an aggregate four-week threshold, the law ensures that flexible workers receive the same basic protections as full-time staff. Businesses should begin auditing their part-time staff schedules and payroll systems now to ensure a seamless transition before the 2026 deadline.Resources
- Legal Guide: Ravenscroft & Schmierer’s Guide to 418/468
- PDF Briefing: Stephenson Harwood: From 418 to 468
- Compliance Tooling: Deltek/Replicon Labour Compliance Resource
