Recent developments in Hong Kong
Relaxation of continuous contract requirements (2026):
The Employment (Amendment) Ordinance 2025 replaces the long-standing “”418 rule”” with a new “”468 rule””. Effective from January 18, 2026, employees who work at least 68 hours over four consecutive weeks will qualify for statutory benefits such as paid holidays and leave, extending eligibility to more part-time and casual workers.
Abolition of the MPF offsetting mechanism (2025):
Starting May 1, 2025, employers can no longer use their portion of Mandatory Provident Fund (MPF) contributions to offset severance and long service payments. To help with the transition, the government will implement a 25-year subsidy scheme exceeding 33 billion HKD.
Strengthened minimum wage review framework (2026):
The annual review mechanism for the Statutory Minimum Wage (SMW) will see its first revised rate under the new system take effect on May 1, 2026. This links the SMW rate to economic factors such as inflation and growth, ensuring that wages remain fair and competitive.
Enhanced parental leave provisions (2025):
In 2025, amendments to the Employment Ordinance expanded statutory maternity and paternity leave entitlements. Eligible employees now receive up to 16 weeks of maternity leave and 5 days of paternity leave, with full pay for qualifying workers, promoting better work-life balance.
Introduction of flexible work arrangements guidance (2026):
The Labour Department issued updated guidelines in early 2026 encouraging employers to adopt flexible working arrangements, including hybrid schedules and staggered hours. These measures aim to improve workforce well-being and help companies retain talent in a competitive labor market.
