The HK government has released an update to give relaxation for employers and employees on releasing the “468 rule”.
With the recent declaration, Hong Kong changed the Employment Ordinance from “418 “to “468, ” attracting employers and industry experts. These changes directly impact terms of employment, salary structures and legal responsibilities, so it is important for employers to be aware of these modifications to ensure compliance and adjust strategies appropriately.
Unlock the replaced changes for the 418 to 468 rule in HK and the employment guidelines for employees and employers in 2024.
Understanding Ordinance 418 (The Origin)
The Labour Department’s Labour Advisory Board, on February 2, 2024, adopted the revised Employment Regulations, which made important adjustments to the long-standing continuous contract requirements. This update primarily changes how working hours and employment requirements are calculated. According to the newly introduced “418 Regulations”, working hours will be measured in four-week units to ensure an 18-hour working time limit per week.
Employee Rights Under the New Continuous Contract Regulation
The committee reports that employees who work 68 hours or more within a 4-week period are considered under a “continuous contract” as per the Employment Ordinance. This entitles employees to the following benefits:
- Rest Days
- Holiday Pay: After 3 months of a continuous contract, employees are entitled to holiday pay on statutory holidays.
- Paid Annual Leave: Granted after 12 months of a continuous contract.
- Sickness Allowance
- Maternity Leave
- Paternity Leave
- Severance Payment or Long Service Payment: Payable upon termination of employment.
- Employment Protection: Safeguards against unfair dismissal or contract changes.
Learn More: About Benefits & Types of Leaves For Continuous Contract Employees
Changes Caused Due To Differences Between 418 To 468 On Employers & Employees
Changes implemented to the 418 rule enhance the introduction of the 468 rule. The 468 requirement allows for working hours of four weeks, setting a threshold of 68 hours of work. Based on the 468 rule, employees who have aggregately completed 68 hours of work for consecutive 4 weeks will be eligible for employment benefits.
The differences and the impact on the 418 to 468 rule can be as follows:
The Impact On Employers On Change Of The 468 Rule In HK
- The Necessity Of Adjusting Labour Arrangements
As labour contract regulations continue to improve, companies will face new challenges. They may need to reallocate their workforce and update contract terms to comply with new legal standards. In addition, by adopting digital technologies to improve efficiency and productivity, companies can find effective cost-cutting solutions.
- Employee Recruitment Strategy
Employers must strategically review existing terms of employment, benefits and compensation packages to ensure they are consistent with the revised continuing contract. This is critical to staying competitive and ensuring part-time employee satisfaction.
- Legal Compliance
Conducting a thorough analysis is important to understanding the employment law implications of successive contract adjustments. Employers must be clear about their responsibilities and potential consequences to avoid legal risks.
- Transparent Communication Channel
In addition to complying with regulations, employers cannot neglect communication with part-time employees. Employers must communicate openly and transparently about new working arrangements. Such communication can increase employee engagement and loyalty while promoting teamwork.
The Impact On Employees For Change Of The 468 Rule In HK
- Higher Job Assurance & Compensation
The new regulations expand the threshold for working hours for temporary and part-time employees, and it is calculated with longer hours. The rationale for this change is to ensure job security and enhance employee benefits.
- Compliance & Awareness
Employees should regulate hours spent at work to qualify for benefits under new working hours regulations.
- Overall Improvement
The change from “418” to “468” employment regulations is in line with the enhancement process of the system of Hong Kong labour laws and the corresponding development of the employment market, and it is also a manifestation of the government’s concern for employees’ rights and benefits.
Key Takeaways
You can accelerate business growth and increase productivity by offering a comprehensive cloud-based HRMS software with customised modules and a seamless user interface. The smart scheduling system makes it easier for the employees working in catering services and other delivery trading services. The 468 employment ordinance deals more with people working in the F&B industry and other shipment retail industries. Employers, by implementing e-scheduling software, can give employees instant alerts of the remaining working hours.
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