Hong Kong's New "468" Employment Regulation: A Significant Shift in Labor Protection

The Hong Kong Legislative Council has passed amendments to the Employment Ordinance, introducing the "468" regulation to replace the existing "418" system. Starting January 18, 2026, employees who work 68 hours over four consecutive weeks will be entitled to statutory benefits, including paid holidays and sick leave. This represents a significant change from the current requirement of 18 hours per week over four consecutive weeks. The new system also introduces flexibility by lowering the weekly threshold to 17 hours while maintaining a cumulative approach.

Market Insight:
This legislative change reflects the evolving nature of Hong Kong's labor market and the increasing prevalence of flexible working arrangements. The amendment aims to provide better protection for part-time and temporary workers, particularly in sectors like retail, food and beverage, and cleaning services. While some industry representatives estimate operating costs could increase by up to 20%, the government maintains that this long-term policy change will help attract more people to the workforce and improve employment conditions.

Potential Effects:

For Employers:

• Large chain operations may need to restructure their part-time staffing arrangements
• Increased operational costs, particularly for SMEs
• Need to review and adjust current employment contracts and working hour arrangements
• Consider implementing new HR systems to track cumulative working hours
• May need to hire additional part-time staff to maintain operational flexibility while managing costs

For Employees:

• Better access to statutory benefits including paid holidays, sick leave, and long service payments
• More stable employment protection even with fluctuating weekly hours
• Potential reduction in individual working hours as employers adjust to the new system
• Increased job opportunities as some employers may split current positions
• Greater flexibility in accumulating qualifying hours across a four-week period

We anticipate that this regulatory change will lead to significant adjustments in Hong Kong's employment landscape. While there may be initial challenges in implementation and cost management, the long-term effect should be a more equitable labor market with better protection for workers in flexible employment arrangements. Employers and employees alike should prepare for these changes well before the January 2026 implementation date to ensure smooth transition and compliance.

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