Hong Kong Annual Leave and Sick Leave: Statutory Entitlements Under Cap 57

Hong Kong Annual Leave and Sick Leave Entitlements Under Cap 57

The Employment Ordinance (Cap. 57) sets the floor for paid annual leave and sickness allowance in Hong Kong. Every employee under a continuous contract is covered, four weeks or more with the same employer, working at least 18 hours per week. The Labour Department enforces the provisions and publishes guidance for employers and employees.

Hong Kong Annual Leave Entitlement

An employee under a continuous contract for 12 months becomes entitled to paid annual leave. The entitlement starts at 7 days and rises by one day for each subsequent year of service, capping at 14 days after nine years. The statutory scale runs: 7 days in year one, 8 in year two, and so on until the ninth year, where it reaches 14 days and stays there.

Leave is calculated by reference to the period of continuous employment. An employee who completes the qualifying period but works less than a full year receives pro-rated leave. The employer must grant the annual leave within the following 12 months. The employee must take it during that window. If the employer does not grant the leave, the employee is entitled to payment in lieu at the wages that would have been payable had the leave been taken.

Hong Kong Sick Leave Allowance

Sickness allowance is payable when an employee cannot work due to illness or injury. The qualifying period is one month under a continuous contract. The rate is four-fifths of normal wages, 80% of the usual daily wage for each day of statutory sick leave taken.

To receive the allowance, the employee must have accumulated sufficient paid sick leave days. The ordinance sets two accumulation rates. During the first year of employment, the rate is two days per month. After that, four days per month. Total accumulated sick leave is capped at 120 days. An employee may accumulate up to that ceiling over the full period of continuous employment.

Hong Kong Statutory Leave Cap 57

Cap 57 governs all statutory leave: annual leave, sick leave, rest days, statutory holidays, maternity leave, and paternity leave. It applies to every employee engaged under a contract of employment in Hong Kong. The exceptions are narrow. Family members living in the same household as the employer are excluded. So are persons employed under certain apprenticeship agreements.

The provisions are minimum standards. An employment contract may offer more generous leave. It cannot offer less. The Labour Department publishes guidance and model employment contracts setting out employer obligations under Cap 57.

Certificate of Sickness Requirement

To claim sickness allowance, the employee must produce a valid medical certificate issued by a registered medical practitioner or a registered Chinese medicine practitioner. The certificate must state that the employee is unfit for work due to illness or injury.

For sick leave of less than three consecutive days, no certificate is required but the employer may still request one. For three consecutive days or more, a certificate is mandatory. Submit it within 48 hours of the start of the sick leave. No valid certificate, no obligation to pay sickness allowance. The employer may also require the employee to undergo a medical examination at the employer’s expense if the certificate’s validity is in doubt.

Sick Leave Accumulation Rules

Paid sick leave accumulates at two days per completed month of continuous employment during the first 12 months. After the first year, the rate rises to four days per month. The total accumulation is capped at 120 days.

Unused sick leave carries forward. The cap is hard. Once the balance reaches 120 days, accumulation stops until some days are drawn down. The employer must keep accurate records of each employee’s accumulated sick leave balance and provide the information on request.

Interaction Between Annual Leave and Sick Leave

Annual leave and sick leave are separate entitlements. An employee cannot use annual leave to cover a period of sickness and then claim sickness allowance for the same period. If an employee falls ill during annual leave, they may request to convert the annual leave days into sick leave days. The employer must agree if the employee produces a valid medical certificate and meets the requirements.

Once accumulated paid sick leave is exhausted, the employee may take unpaid sick leave. The ordinance protects an employee from dismissal during a period of certified sickness, provided they have accumulated sick leave days available. Dismissal solely because the employee is on sick leave is not permitted.

Payment of Sickness Allowance

Sickness allowance is paid at four-fifths of the employee’s normal wages, 80% of the usual daily wage for each day of statutory sick leave. Pay on the next normal pay day after the sick leave period ends. If payment is not made, the employee may claim the amount through the Labour Department or the Labour Tribunal.

The four-fifths calculation uses the employee’s average daily wages earned in the 12 months preceding the sick leave. For employees with less than 12 months’ service, the calculation is based on the shorter period of employment. Calculate correctly. Pay promptly.

Employer Obligations and Record Keeping

Employers must maintain accurate records of annual leave and sick leave taken by each employee. The records must show the dates of annual leave taken, the amount of sick leave accumulated and used, and the sickness allowance paid. Keep these records for at least 12 months after the employee leaves.

Failure to keep proper records or grant statutory entitlements triggers enforcement action. The Labour Department may issue warnings, require payment of arrears, or prosecute. Know the requirements of the Employment Ordinance (Cap. 57). Seek professional advice where necessary.

Summary of Key Points

The Employment Ordinance (Cap. 57) sets minimum standards. Annual leave starts at 7 days and rises to 14 days after nine years of continuous service. Sick leave is paid at four-fifths of wages, accumulating up to 120 days. A medical certificate is required for sick leave of three consecutive days or more. The Labour Department enforces these provisions. Employers must keep accurate records and comply with the statutory requirements.