Hong Kong's continuous employment threshold is moving from the "418 rule" to the "468 rule," a change that will reshape how employers classify part-time workers under the Employment Ordinance.

Under the prior 418 test, an employee earned "continuous contract" status after four consecutive weeks working at least 18 hours each week. The revised framework retains the four-week period but replaces the per-week minimum with a 68-hour aggregate floor — averaging 17 hours per week across those four weeks.

Norton Rose Fulbright reported the change, which carries direct implications for HR teams tracking eligibility for paid annual leave, statutory holidays, severance, and long-service payments tied to continuous service.

What does the rule change for employers?

The shift broadens the pool of workers who meet the continuous contract threshold, particularly those whose hours fluctuate week to week.

Consider a worker scheduled 25 hours in week one, 12 in week two, 18 in week three, and 13 in week four. Under the old test, that worker failed in week two and lost continuous contract status. Under the new rule, the four-week total of 68 hours clears the bar.

HR systems that previously screened for the 18-hour weekly minimum will need recalibration. The review window also shifts from a per-week check to a rolling four-week calculation, which means time-and-attendance platforms configured for weekly thresholds will require rework.

Which benefits attach to continuous contract status?

Continuous contract employees in Hong Kong gain access to rest days, statutory holiday pay, paid annual leave that rises with service, sickness allowance, severance and long-service payments, maternity protection, and protection against unreasonable dismissal.

For part-time workers whose schedules were deliberately kept below the old threshold, the change reclassifies their employment relationship. HR will need to reassess scheduling patterns that previously kept staff outside the statutory framework, and to model the cost impact of expanded leave entitlements and severance exposure.

Retail, hospitality, and food-and-beverage employers with rotating part-time schedules sit on the front line of this shift. Those sectors rely heavily on variable-hour workers whose rosters have historically been designed around the 418 weekly minimum.

What should HR teams do now?

Norton Rose Fulbright's analysis points HR teams toward three immediate actions: audit existing part-time contracts against the new threshold, update attendance and hours-tracking systems, and brief payroll on revised eligibility calculations.

Employers that relied on the 418 floor to maintain casual worker status may face higher statutory benefit costs as more workers meet the continuous contract definition.

Communication presents a fourth task. Managers overseeing part-time and casual workforces need clear guidance on the new floor so they do not inadvertently push staff into continuous contract status through ad hoc scheduling decisions.

How does the calculation work under the new rule?

The 68-hour total over four weeks works out to roughly 17 hours per week on average — only one hour below the old weekly minimum.

For many employers with stable part-time schedules, the change will produce limited practical impact. For employers who used the old threshold to draw a clean line between full-time, part-time, and casual categories, the new aggregated test blurs that line. It forces case-by-case review at each four-week boundary.

When does the change take effect?

The revised rule takes effect on a date tied to Hong Kong's commencement of the Employment and Labour Relations (Amendment) Ordinance.

HR teams should confirm the implementation date with their Hong Kong counsel and adjust onboarding and classification protocols before the new threshold applies to new hires.

The government's commencement notice and any transitional provisions affecting in-flight employment contracts will determine how aggressively HR must act in the first quarter under the new rule.