Explaining the 4-18 rule for Hong Kong employees

What the 4-18 Rule Is

The 4-18 rule in Hong Kong employment law is the threshold that determines whether an employee is working under a continuous contract as defined by the Employment Ordinance (Cap. 57). Under this rule, an employee who has been employed continuously by the same employer for four weeks or more, and has worked at least 18 hours in each of those weeks, is considered to be on a continuous contract. Once this threshold is met, the employee becomes entitled to a range of statutory benefits that are not available to employees who do not qualify under the 4-18 rule what is the 4-18 rule.

4-18 Rule Hong Kong Employment

The Labour Department administers the continuous contract provisions under the Employment Ordinance (Cap. 57). The 4-18 rule hong kong employment applies to employees engaged under a contract of employment, with limited exceptions. The test is straightforward: count the number of weeks the employee has worked for the same employer. If it reaches four weeks, and each week the employee worked at least 18 hours, a continuous contract is established. The rule applies regardless of whether the employment is full-time or part-time, provided the hours and duration requirements are met.

Continuous Contract 4-18 Rule

The continuous contract 4-18 rule is the foundation for most statutory employment protections in Hong Kong. Once an employee satisfies the 4-18 rule, the contract is deemed continuous from the start of the employment. This means the employee is entitled to a statutory rest day, paid annual leave, sickness allowance, severance payment, long service payment, and payment in lieu of notice, among other rights. Employers should note that even if an employee does not work a full week in a particular week, the continuity of the contract is not broken as long as the employment relationship continues. The Labour Department provides guidelines on what counts as a week for this purpose.

Employment Ordinance 4-18 Rule

The employment ordinance 4-18 rule is codified in the Employment Ordinance (Cap. 57). The legislation sets out the specific conditions under which a continuous contract is established. The key provisions are found in Part II of the Ordinance, which defines a continuous contract. The rule is not a separate piece of legislation but a practical test applied by the Labour Department and the courts. The Ordinance provides that an employee is deemed to be employed under a continuous contract if the employee has been employed under a contract of employment for four weeks or more, working at least 18 hours in each week.

Statutory Rights 4-18 Rule HK

The statutory rights 4-18 rule hk unlocks include several important entitlements. Once the continuous contract threshold is met, the employee is entitled to:

• Rest day: One rest day in every seven-day period, usually a Sunday or another day agreed between employer and employee.
• Paid annual leave: Seven days of paid annual leave after completing 12 months of continuous employment, increasing according to length of service.
• Sickness allowance: Paid at four-fifths of the employee's average daily wages, provided the employee has accumulated sufficient paid sickness days.
• Severance payment: Payable when an employee with continuous employment of at least two years is dismissed due to redundancy or business closure.
• Long service payment: Payable when an employee with at least five years of continuous employment is dismissed for reasons other than misconduct or redundancy, or resigns at age 65 or over.
• Payment in lieu of notice: The employer may make a payment equal to the wages the employee would have earned during the notice period instead of requiring the employee to work it.
• Summary dismissal: An employer may summarily dismiss an employee without notice or payment in lieu if the employee commits serious misconduct such as dishonesty or gross insubordination. In such cases, the employee may lose certain statutory entitlements.

The Labour Department advises that the 4-18 rule is applied from the first day of employment. Employers should keep accurate records of hours worked to verify whether the threshold has been met. Employees who do not qualify under the 4-18 rule are not entitled to these statutory benefits, though they retain their rights under the contract of employment and general employment law.