Cross-Border Catch-Up: The 468 Rule—What It Means for Hong Kong’s Part-Time Workforce

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Skye Hao: Welcome to the Cross-Border Catch-Up, the podcast for global employers who want to stay in the know about cutting-edge employment issues worldwide. I am Skye Hao. I’m an associate at Ogletree. Here with me, my colleague Lina Fernandez. We are cross-border attorneys here. Today, we are going to discuss a major update to Hong Kong Ordinance, the shift from the 418 rule to the new 468 rule. This change is set to reshape protections for part-time and casual workers. Let’s get into it.

Lina Fernandez: Thank you, Skye. Before we dive into the 468 rule, let’s just get the stage with some background on Hong Kong’s employment structure.

Skye Hao: Good idea, Lina. Hong Kong’s labor market is really unique. It’s a global financial hub with highly flexible market-driven economy. On the Employment Ordinance, first enacted in 1968, is the backbone of employee protections covering things like wage, rest days, and severance pay. It applies to all employees except certain groups, like domestic workers or seafarers.

Lina Fernandez: Right. The Ordinance distinguishes between employees on continuous contracts and those who aren’t. Continuous contract employees get the benefits like statutory holidays, which are 11 days per year. They also get paid annual leave starting at seven days, sickness allowance, and maternity or paternity leave. Non-continuous contract workers on the other side are often part-timers or casuals miss out on these benefits unless their employers opt-in.

Skye Hao: Exactly. Hong Kong’s workforce includes significant numbers of part-time and casual workers, especially in industries like retail, catering, and hospitality, just similar like in the U.S. According to the government, that’s about 7% of Hong Kong’s 3.7 million workforce are part-time or temporary workers. Those workers are often vulnerable, like being scheduled just under the threshold for benefits.

Lina Fernandez: That’s where the 418 rule comes in, which has been the standard for defining continuous contract. Skye, could you please break it down for us?

Skye Hao: Of course. The 418 rule says an employee who works at least 18 hours per week for the same employer for four consecutive weeks is deemed to be on the continuous contract. This entitles them to those benefits Lina mentioned about, about those holiday pays, sick leave, and more. Employers have ways around it of course, like scheduling workers for 17.5 hours a week to dodge the threshold.

Lina Fernandez: That loophole is why the 468 rule is such a big deal. The legislative consul on June 18th, 2025, passed the rule which is set to take effect on January 18, 2026. Instead of 18 hours per week, employees qualify for a continuous contract if they work a total of 68 hours over the four-week period. That’s about 17 hours a week on average, making it more flexible.

Skye Hao: Yeah. This is a huge win for workers with irregular schedules, think retail staff, or event workers. The government estimates over 10,000 workers could gain access to benefits. But it’s not just about workers. Employers, especially in sectors like catering and entertainment, need to brace this for higher costs.

Lina Fernandez: This here is important. Hong Kong’s employment structure is shaped by its low unemployment rate, it’s about 2% in 2025, and a culture of long hours with full-time employees often working 50-plus hours per week. Part-time work is growing, especially among younger workers and those juggling multiple works, sometimes called slashies.

Skye Hao: The 468 rule fits right into this shift towards flexible workers. It’s designed to protect those workers who don’t have the steady schedule, but employers are required to notify workers about the change. Business should start reviewing their workforce now to figure out who will qualify for benefits in 2026.

Lina Fernandez: For employers, this actually means a cost increase, especially in industries like Skye had said, retail and catering, which make up about 20% of Hong Kong’s workforce. Many of those jobs are part-time, so businesses may need to tweak budgets or scheduling practices to comply.

Skye Hao: Yeah. For workers, it’s a win. More people are going to get pay leaves, severance pay, and other protections, which is huge in a city with high living costs. But here’s a risk. Some employers may try to schedule workers for less than 68 hours over four weeks to avoid the threshold. Workers may want to track their hours to avoid such situation.

Lina Fernandez: Technology could help here. HR software for tracking hours can make compliance easier, especially for businesses with lots of part-time staff, like chain restaurants or retail stores.

Skye Hao: Yeah. This isn’t a Hong Kong thing, it’s around the world we are seeing similar changes at the law in place, like Denmark requiring better tracking for hours for flexible workers. It’s all about adapting to modern work pattern from gig work to part-time roles.

Lina Fernandez: That’s right, Skye. The 468 rule is a step toward fairer treatment in Hong Kong’s fast-moving labor market. Any final thoughts?

Skye Hao: Just the preparation is key. Employers should review contract and schedules now to avoid a surprise in 2026. Workers keep track of the hours and know their rights. This change is about fairness, but it will take efforts from both sides to make it work.

Lina Fernandez: Well, thank you, Skye. This is very interesting. Thanks, everyone, for joining us today for Cross-Border Catch-Up. Follow us to stay in the know about cutting-edge employment issues worldwide.

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