Annual leave entitlement under Hong Kong law

Annual Leave Entitlement Under Hong Kong Law

Paid annual leave is a statutory right under the Employment Ordinance (Cap. 57), earned through an employee’s length of continuous service. The entitlement increases with each year of service. After 12 months of continuous service, an employee is entitled to seven days of paid annual leave in their first year.

Hong Kong Annual Leave Calculation

Statutory annual leave follows a scale in the Employment Ordinance. An employee receives seven days for the first year of service. The entitlement then increases by one day each subsequent year, reaching a maximum of 14 days after the ninth year. Calculate the daily rate of pay by dividing the total wages earned in the 12 months before the leave by 365. For employees working fewer than six days a week, divide by the number of days actually worked.

Paid Annual Leave Hong Kong

Employees who complete a 12-month continuous contract are entitled to paid annual leave. The employer must grant this leave within 12 months of the leave year’s end. If the employer fails to do so, they must pay in lieu. The payment equals the daily rate of pay multiplied by the number of untaken leave days.

Employment Ordinance Annual Leave

The Employment Ordinance (Cap. 57) governs annual leave entitlement. Section 41A of the Ordinance sets out the leave scale based on length of service. The Labour Department provides guidance on calculation and administration, covering leave taken before the entitlement year ends and pro-rata leave on termination.

Annual Leave Accrual Hong Kong

Leave accrues on a year-of-service basis, not monthly or hourly. The entitlement becomes fixed upon completing each 12-month period of continuous service. An employee who leaves early may receive pro-rata leave if their contract allows it or if the employer terminates without notice. The employer must record the leave balance in payroll records and make it available for Labour Department inspection on request.