Hong Kong's continuous contract requirement changed on 18 January 2026. The previous “418” test required an employee to work at least 18 hours in every one of four consecutive weeks. Under the new arrangement, commonly called “468”, an employee may also qualify through a rolling total of at least 68 hours across four weeks.
The change affects more than payroll calculations. Employers that use part-time, casual or demand-based rosters need reliable weekly records, a consistent way to assess each rolling four-week period and a process for applying statutory entitlements when an employee qualifies.
What changed from 418 to 468
The Employment (Amendment) Ordinance 2025 was passed by the Legislative Council on 18 June 2025 and gazetted on 27 June 2025. The new requirement applies from 18 January 2026 and has no retrospective effect.
An employee who has been continuously employed by the same employer for four weeks or more is employed under a continuous contract if either working-hours condition is met:
- the employee works at least 17 hours in a week; or
- where a week is below 17 hours, the employee works at least 68 hours in total during that week and the three weeks immediately before it.
The aggregate test does not apply during the first three weeks of a new employment because there are not yet three previous weeks to include. Each of those first three weeks must reach at least 17 hours. For employment periods before 18 January 2026, the old requirement of at least 18 hours in each of four consecutive weeks continues to apply.
For worked examples, see our related guide: 418 vs 468 calculation explained.
Why the rule matters to employers
Under 418, one week below 18 hours could break the working-hours test. Under 468, an uneven roster can still meet the requirement if the rolling four-week total reaches 68 hours. This means some employees who did not previously qualify may now fall within a continuous contract.
Employees under a continuous contract may be entitled to statutory benefits under the Employment Ordinance, including statutory holiday pay, paid annual leave, sickness allowance, and eligibility for severance payment or long service payment, subject to the separate qualifying conditions for each benefit. Employers therefore need the assessment result to flow into payroll, leave administration and termination calculations.
What HR and payroll should review
- Working-hour records: keep complete weekly records for part-time and casual employees, including hours treated as worked under the Employment Ordinance.
- Rolling calculations: assess the current week together with the three immediately preceding weeks, rather than using a calendar-month average.
- Transition date: separate periods before and from 18 January 2026 because different tests apply.
- New hires: apply the 17-hour weekly requirement during the first three weeks before the aggregate test can operate.
- Payroll and leave: ensure an employee's status can trigger the correct statutory entitlements and records.
- Contracts and guidance: update employment documents, staff handbooks and instructions for managers who prepare rosters.
Hours may include more than time physically worked. Labour Department guidance notes that hours relating to statutory leave or leave agreed between the employer and employee, such as agreed unpaid leave, may count under the First Schedule to the Employment Ordinance. Individual cases should be checked against the legislation and current official guidance.
Rostering and workforce planning
The new rule should not be treated as a target for keeping employees below statutory protection. Roster decisions should reflect genuine operational needs and comply with the Employment Ordinance. Employers should instead model which employees are likely to qualify, budget for the related entitlements and make sure managers understand that one lower-hours week no longer automatically breaks continuity.
Businesses with large part-time workforces should also review how status information moves between operations, HR and payroll. A correct calculation is only useful if the result reaches the people responsible for leave, payments and employment records.
Our view
The practical risk is usually incomplete data or inconsistent weekly checks. A documented rolling calculation, clear ownership and regular reconciliation between roster and payroll records provide a stronger control than relying on average hours or manual memory.
If you need help reviewing part-time headcount, rosters or payroll processes, contact the iTalent team. We also provide payroll outsourcing and secondment support, and you can browse our latest opportunities.
