What are the "418 Ordinance" and "468 Ordinance"?
The "418 Ordinance" and "468 Ordinance" refer to two stipulations inHong Kong Employment Ordinance concerning continuous contract of employment.
418 Ordinance: Implemented in 1990, the ordinance stipulates that employees who work continuously for the same employer for 4 weeks or more, with a minimum of 18 hours per week, are considered to be employed under a "continuous contract." Such employees are entitled to statutory entitlements, including paid sick leave, paid annual leave and holiday pay.
468 Ordinance: In February 2024, the Hong Kong government amended the original "418 Ordinance" by proposing "468 Ordinance." Under the new regulations, the threshold for continuous contracts has changed from "working continuously for 4 weeks or more with a minimum of 18 hours per week" to "accumulating a total of 68 hours of work within a 4-week period" in order to qualify for the statutory entitlements associated with a continuous contract.
Why Did the Hong Kong Government Make This Amendment?
The amendment aims to strengthen protections for part-time employees, particularly those in unstable work situations. Some of the representatives in the labour sector have pointed out that the "418 Ordinance" contained loopholes that employers could exploit to prevent themselves from providing additional benefits to their employees. For example, employers could schedule part-time employees to work less than 18 hours in the fourth week to avoid meeting the requirements for a "continuous contract” so as to avoid additional spending.
How to Avoid Legal Violations?
BridgeBuilder HRMS offers a flexible rostering module that includes various roster rules and templates, presented in an easy-to-use calendar interface. This calendar not only displays each employee's schedule but also provides all relevant information related to leaves and compliance, such as annual leave balance, public holiday balance and overtime hours, which help accelerate roster planning efficiency. Moreover, the system incorporates a "418" checker which actively monitors and detects any employees at risk of exceeding legal working hours. If such a situation is detected, the system will proactively alert supervisors via on-screen notifications or emails, enabling them to arrange additional employee benefits and reduce the risk of legal violations.
BridgeBuilder HRMS also keeps abreast of updates to labor laws and has made necessary adjustments to comply with the "468 Ordinance". This ensures that clients can receive timely system updates and maintain compliance with legal requirements.
If you are interested in learning more about the features of BridgeBuilder HRMS or would like to schedule a free system consultation with our consultants, please feel free to contact us.
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