The Legislative Council passed the Employment (Amendment) Bill 2025 on June 18, 2025, introducing significant changes to the "continuous contract" requirement under the Employment Ordinance (Cap. 57). The revised provisions will take effect from January 18, 2026, benefiting an estimated 11,400 additional employees across Hong Kong.

Key Amendments:

The bill lowers the threshold for qualifying as a “continuous contract” and introduces greater flexibility in calculating working hours. The changes are as follows:

Weekly Working Hours Threshold:The minimum weekly working hours for qualifying under the "continuous contract" has been reduced from 18 hours to 17 hours.

Alternative Calculation Method (The “468 Rule”):Employees can now qualify if their total working hours over four consecutive weeks reach 68 hours, even if the hours in a specific week fall below 17 hours.

The Hong Kong SAR Government has welcomed the passage of the bill, emphasizing that these amendments are aimed at improving employee rights while adapting to changes in the labor market. By lowering the threshold and adding flexibility, the revisions significantly reduce the likelihood of employees losing their continuous contract status due to occasional dips in weekly hours. This ensures that part-time and contract employees can more easily qualify for statutory benefits, including paid statutory holidays, annual leave, and sick leave.

The Secretary for Labour and Welfare, Chris Sun Yuk-han, stated that the changes reflect a balance between employee rights and employer concerns, achieved through extensive discussions by the Labour Advisory Board. Despite the current challenges faced by businesses, the amendments are designed to promote long-term stability and fairness in the labor market.

Implementation Timeline:

The revised "continuous contract" provisions will take effect on January 18, 2026, the first Sunday six months after the bill is gazetted on June 27, 2025. During this period, the government will provide employers and employees with clear guidance and publicize the changes through various channels to ensure compliance.

What This Means:

Employers should take note of the following:

Review and adjust employment arrangements to comply with the new "468 rule."

Educate and prepare HR departments on the revised calculation methods for continuous contracts.

Ensure that qualifying employees are granted corresponding statutory benefits under the new regulations.

The Federation encourages members to prepare for the implementation of these changes and to stay informed about further updates.