The move from the "418" rule to the "468" rule is often described as lowering the hours threshold. It also changes how working hours are counted, and that matters more for employers with uneven rosters. The examples below show which employees now qualify for continuous contract status and which still do not.
How the two rules differ
Under the old 418 rule, an employee qualified for a continuous contract only by working at least 18 hours in every one of four consecutive weeks for the same employer.
From 18 January 2026, Labour Department guidance states that an employee who has worked for the same employer for four or more consecutive weeks is employed under a continuous contract if either of two conditions is met:
- they work at least 17 hours in a given week; or
- where a week falls below 17 hours, they work at least 68 hours in total across that week and the three weeks immediately before it.
The 68-hour aggregate test does not apply during the first three weeks of employment. In that period, each week must reach at least 17 hours on its own, because there are not yet three previous weeks to count.
Example: an employee who now qualifies
A retail employee works 20, 18, 15 and 16 hours across four consecutive weeks.
Under 418, weeks three and four both fall below 18 hours, so the employee would not have qualified. Under 468, the four weeks total 69 hours, which clears the 68-hour aggregate. This employee now qualifies, even though two of the four weeks did not reach the old weekly threshold.
Example: an employee who still does not qualify
A casual worker is rostered for 10, 12, 14 and 15 hours, a total of 51 hours. That is below 68, so the employee does not qualify under either rule. The 468 test lowers the bar but does not remove it; employees with genuinely light or infrequent rosters can still fall outside continuous contract protection.
Other points to note
- New hires: the aggregate test cannot be used in the first three weeks; each week needs at least 17 hours.
- No retrospective effect: periods before 18 January 2026 are assessed under the old 18-hour weekly test.
- Rolling window: the aggregate is always the current week plus the three weeks before it, recalculated each week, not a calendar month.
- Hours that count: under Schedule 1 of the Employment Ordinance, this includes statutory holidays taken and agreed unpaid leave, not only hours physically worked.
- One low week: a single low week no longer automatically breaks continuity, provided the rolling four-week total still reaches 68 hours.
Who this mainly affects
The impact is greatest in sectors that roster staff according to demand, such as retail, food and beverage, transport, security and construction. In these businesses, part-time staff can easily reach 68 hours over four weeks without working 18 hours in every one of them. These are the employers most likely to see staff newly qualify for statutory benefits.
What HR should check now
Run the 68-hour rolling calculation against actual roster data, not average weekly hours, since averages can hide weeks that would have failed 418 but pass 468 in aggregate. Flag employees whose rolling total is approaching 68 hours so payroll can prepare before entitlements are triggered.
Keep working-hour records before and after 18 January 2026 clearly separated, as the two periods are assessed differently. Build the first-three-weeks rule into onboarding, so that a new hire's early roster is checked against the 17-hour weekly requirement.
Our view
For most employers, the risk is not misunderstanding the rule but applying it to incomplete roster data. A clear, regularly checked record of weekly hours is the simplest protection.
If you would like help reviewing part-time headcount, rosters or payroll processes under the new rule, contact the iTalent team. We also offer payroll outsourcing and secondment arrangements for flexible staffing.
