When the Hong Kong Government announced the shift from the well-known 418 rule to the new 468 rule, many employers saw it as a legal update. But for HR managers, payroll professionals, and operations leaders, it is far more than legislation—it represents a fundamental shift in how part-time and shift-based employees must be managed. The transition will officially take effect on 18 January 2026, and the real challenge for employers lies in how to operationalise this change.
The question HR teams should now be asking is: Are our attendance, scheduling, and payroll processes ready for the 468 era?
Why the 468 Rule Changes Everything for HR
Under the old 418 rule, the definition of a “continuous contract” was straightforward: an employee needed to work at least 18 hours a week for four consecutive weeks. HR teams monitored weekly hours, recorded attendance for each pay period, and determined eligibility for statutory benefits based on clear weekly calculations.
The new 468 rule is different in a fundamental way. Instead of evaluating hours on a weekly basis, employers must now track whether an employee works a total of 68 hours across any four consecutive weeks.
That sounds simple on the surface, but it introduces a rolling, cumulative hour requirement that is much more complex than the previous weekly threshold. The challenge is that employees who work irregular or varying shifts—such as part-timers in retail, hospitality, food and beverage, events, education support, and cleaning—may now qualify for statutory benefits even if their work patterns are inconsistent. A worker may stay under 18 hours one week, exceed it the next, dip again, then catch up in the fourth week—all of which still counts toward the 68-hour cumulative requirement.
This means many employees who previously did not fall under the continuous contract definition now will, which expands their eligibility for statutory holidays, paid leave, sickness allowance, rest days, and long-service or severance pay. For HR teams, this is a major recalibration of workforce management.
The Hidden Risk: HR Cannot Rely on Manual Processes Anymore
Most compliance issues do not arise from intentional wrongdoing—they happen because HR teams are working with tools that simply cannot support the complexity of the new rules. Spreadsheets, WhatsApp time logs, handwritten timesheets, or stand-alone attendance machines will no longer be enough. Tracking cumulative hours over rolling four-week windows requires systems that continuously update, recalculate, and cross-reference attendance in real time.
One of the biggest risks is that HR may not realise an employee has crossed the 68-hour threshold until weeks later. When that happens, the organisation may underpay benefits without realising it, causing retrospective adjustments, disputes, and even legal exposure. It is also harder to plan manpower budgets when HR cannot accurately predict which employees will soon qualify for new entitlements.
This hidden risk creates a new reality: HR operations must become digitally integrated. Manual management cannot keep pace with the 468 rule.
Why Integrated HRMS Software Are Now Essential
The shift from 418 to 468 is not only a legal change—it is a digital transformation trigger. HR leaders across Hong Kong are now turning to HRMS platforms because the rule requires accurate, tamper-proof, and automatically calculated attendance data.
With an HRMS like Info-Tech, each clock-in becomes part of a real-time data stream. The system continuously calculates how many hours an employee has accumulated in the current four-week window, flags when an employee is approaching the 68-hour threshold and automatically updates their employment status the moment they qualify for a continuous contract.
For payroll teams, this integration is critical. Attendance feeds directly into payroll, ensuring that wage calculations reflect statutory requirements without HR needing to manually adjust spreadsheets. When attendance, leave, scheduling, and payroll operate as a single ecosystem, HR can handle compliance without additional administrative burden.
Smart scheduling also plays an important role. When HR can visualise each employee’s cumulative hours for the coming weeks, they gain the ability to plan staffing levels more accurately and avoid unintentional threshold crossings. This is particularly useful for industries that depend on flexible manpower.
Compliance Is Not Just About Rules—It’s About Fairness and Transparency
The introduction of the 468 rule is expected to benefit thousands of part-time and casual workers who previously fell outside the continuous contract definition. For employers, this is an opportunity to show commitment to fairness and employee wellbeing.
When HR teams adopt transparent systems, employees gain confidence that their hours are tracked accurately, and their entitlements are calculated fairly. This improves trust, reduces disputes, and strengthens the employer brand—especially in sectors where competition for labour is high.
By using digital attendance tools like facial recognition or GPS-verified clock-ins, organisations also prevent common problems such as buddy punching or falsified timesheets.
What HR Teams Should Do Before 18 January 2026
With the deadline approaching, employers cannot afford to wait. The first step is to audit your workforce and identify which employees are most likely to meet the 68-hour threshold. Historical attendance data can reveal patterns—for example, seasonal staff who work extra hours during holidays, or part-time workers whose schedules fluctuate across weeks.
The next step is digitisation. HR teams should transition from manual attendance systems to a centralised HRMS that integrates attendance, payroll, leave, and scheduling. This ensures that every hour is recorded accurately and automatically calculated against statutory requirements.
Policies and employment contracts must also be updated to reflect the new definitions and entitlements. HR should communicate transparently with employees, explaining how 468 works and what it means for their benefits. Clear communication builds trust and reduces confusion.
Finally, HR should ensure that payroll systems are ready for automatic entitlement calculations. Under the 468 rule, missed calculations can quickly escalate into disputes or compliance breaches, especially in industries with high turnover.
The 468 Rule Is a Challenge—But Also an Opportunity
It is easy to view the 468 rule as a regulatory burden, but forward-looking organisations see it differently. The rule encourages employers to improve record-keeping, adopt digital tools, strengthen fairness, and modernise HR processes. When companies embrace the change, they gain better control over labour costs, reduce administrative workload, and build healthier employer-employee relationships.
Meanwhile, if your organisation needs support with time attendance, e-scheduling, and payroll automation for 468 compliance, Info-Tech HRMS offers an all-in-one solution designed specifically for Hong Kong’s regulatory environment.
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Frequently Asked Questions:
What is the 468 rule in Hong Kong?
The 468 rule defines a continuous contract as an employee working at least 68 hours across any four consecutive weeks. It replaces the old requirement of 18 hours per week under the 418 rule.
When will the 468 rule take effect?
The new rule will be officially implemented on 18 January 2026 as part of Hong Kong’s Employment Ordinance update.
Why is the 468 rule more complex for HR?
It requires tracking cumulative hours over rolling four-week windows, which makes manual attendance tracking unreliable and increases compliance risks.
How does digital attendance help with compliance?
Digital systems automatically record hours, calculate eligibility, prevent manipulation, and sync with payroll—ensuring accurate statutory benefit calculations.
How can HRMS streamline compliance under the 468 rule?
An HRMS integrates attendance, scheduling, leave, and payroll. This allows HR to detect eligibility instantly and ensure statutory entitlements are applied correctly.
