Continuous contract under Hong Kong employment law

Continuous Contract Hong Kong

A continuous contract under Hong Kong employment law is defined in the Employment Ordinance (Cap. 57). An employee is under a continuous contract when employed by the same employer for four weeks or more, working at least 18 hours each week. This is the 4-18 rule hong kong.

Meeting this threshold unlocks most statutory entitlements under the Employment Ordinance. Employees who satisfy the 4-18 rule qualify for rest days, paid annual leave, sickness allowance, severance payment and long service payment. The Labour Department administers these protections.

Continuous contract status shapes the entire hong kong employment contract. It determines notice period calculations, entitlement to statutory holiday pay, and the employer's obligations under the Mandatory Provident Fund system.

Employment Ordinance Continuous Contract

The employment ordinance continuous contract provisions are in Part II of Cap. 57. The ordinance establishes the 4-18 rule as the sole test for continuous employment. Once an employee meets this test, the contract is treated as continuous until terminated.

Employers must confirm an employee's continuous contract status when preparing payroll, calculating leave, or handling termination. The Labour Department publishes guidance on counting weeks and hours for this purpose.

4-18 Rule Hong Kong

The 4-18 rule hong kong requires an employee to have worked for at least four consecutive calendar weeks, with a minimum of 18 hours worked in each week. An absence from work does not automatically break the count. A week still qualifies if the absence is due to a statutory holiday, rest day, or sickness day.

Continuous Employment Rights

Continuous employment rights include:

• Paid rest days
• Statutory holiday pay
• Paid annual leave
• Sickness allowance
• Severance payment
• Long service payment
• Payment in lieu of notice

These rights do not apply before the 4-18 qualifying period is complete. Employers should document each employee's start date and weekly hours to establish when the continuous contract begins.