How much annual leave must I give staff in Hong Kong

How Much Annual Leave Must I Give Staff in Hong Kong

The minimum amount of paid annual leave you must give staff in Hong Kong is governed by the Employment Ordinance (Cap. 57). An employee who has been under a continuous contract for 12 months is entitled to seven days of paid annual leave. This entitlement increases by one day each subsequent year, up to a maximum of 14 days after nine years of service.

Hong Kong Annual Leave Entitlement

The annual leave entitlement under the Employment Ordinance is calculated based on the employee's length of service under a continuous contract. The scale is as follows:

• 1 year of service: 7 days
• 2 years: 7 days
• 3 years: 8 days
• 4 years: 9 days
• 5 years: 10 days
• 6 years: 11 days
• 7 years: 12 days
• 8 years: 13 days
• 9 years or more: 14 days

An employer may offer more than the statutory minimum, but cannot offer less. The Labour Department enforces these statutory entitlements.

Statutory Annual Leave HK

The statutory annual leave in Hong Kong applies only to employees who have been employed under a continuous contract for at least 12 months. The 4-18 rule determines continuous employment: an employee who works for the same employer for four weeks or more, with at least 18 hours worked in each week, is considered to be under a continuous contract. This rule unlocks the right to paid annual leave, along with other entitlements such as rest day, statutory holiday, sickness allowance, severance payment and long service payment.

Employment Ordinance Annual Leave

The Employment Ordinance (Cap. 57) sets out the rules for annual leave. The employer must grant the leave within 12 months after the end of the leave year. The employee must take the leave in a continuous period, unless the employer and employee agree otherwise. The employer must pay the employee the annual leave pay at the rate of the employee's average daily wages earned in the 12-month period preceding the leave.

If the employment is terminated before the employee has taken the full annual leave entitlement, the employer must pay the employee a payment in lieu of the untaken leave. This payment is calculated at the same rate as annual leave pay.

Pro-Rated Annual Leave Hong Kong

For an employee who has completed less than 12 months of service, the annual leave entitlement is pro-rated. The employee is entitled to a proportion of the annual leave that would have accrued had they completed the full year. The pro-rated amount is calculated as follows:

(Number of completed months of service ÷ 12) × the number of days of annual leave the employee would have been entitled to after 12 months

For example, an employee who resigns after six months of service would be entitled to 3.5 days of pro-rated annual leave (6 ÷ 12 × 7 days). The employer must pay this amount as payment in lieu of untaken leave upon termination.

Additional Statutory Benefits

Employees under a continuous contract also qualify for other statutory benefits under the Employment Ordinance. These include rest days, statutory holidays, sickness allowance, and, where applicable, severance payment or long service payment. The employer must also provide employees' compensation insurance under the Employees' Compensation Ordinance (Cap. 282) and make Mandatory Provident Fund contributions for eligible employees.

What to Do Next

Review your employment contracts to ensure they comply with the statutory annual leave requirements. If you offer more than the statutory minimum, the terms of the contract will govern. For employees who have not yet completed 12 months of service, calculate the pro-rated annual leave entitlement accurately. The Labour Department provides guidance on its website for employers needing further clarification on the Employment Ordinance and annual leave obligations.