Hong Kong 468 Rule: HR System Requirements & Compliance Guide
Hong Kong’s 468 rule represents a fundamental shift in the city’s Employment Ordinance, moving away from the rigid “418” definition of a continuous contract. Passed by the Legislative Council and set to take effect on 18 January 2026, this amendment introduces a rolling, cumulative model for determining employee eligibility for statutory benefits.
For organizations managing workforces with variable hours or flexible schedules, the operational implications are significant. The transition from strict weekly thresholds to a 68-hour four-week aggregate increases the reliance on high-precision data and advanced workforce management system capabilities.
Key Differences: 418 vs. 468
The 418 Rule (Current):
An employee must work at least 18 hours per week for four consecutive weeks. Continuity is broken if the employee works fewer than 18 hours in any single week.
The 468 Rule (2026):
An employee must work a combined total of at least 68 hours over any four consecutive weeks. Individual weekly hours are no longer the primary metric; the 4-week aggregate determines continuity.
At a Glance: Hong Kong’s Continuous Contract Evolution
| Feature | Legacy “418” Rule | New “468” Rule (Effective Jan 2026) |
| Duration Requirement | 4 consecutive weeks | 4 consecutive weeks |
| Weekly Threshold | Minimum 18 hours required every single week. | No weekly minimum; focus is on the aggregate total. |
| Total Hour Requirement | Variable (72 hours total, but must be 18/18/18/18). | Total 68 hours across the 4-week period. |
| Calculation Logic | Static: Check is performed at the end of each week. | Rolling: Continuous 4-week aggregate window. |
| Eligibility Impact | A single week below 18 hours “breaks” continuity. | High-hour weeks can offset low-hour weeks. |
| Management Focus | Monitoring weekly roster caps. | Monitoring cumulative totals & rolling windows. |
System Requirements for Rolling Calculations
The 468 rule introduces a rolling 28-day window, which requires more sophisticated system support than the static weekly reporting used under the 418 rule.
1. Cumulative Hour Tracking
HR systems must aggregate actual working hours across a continuous 4-week period, updating calculations daily as the window moves forward. When the most recent four-week total reaches 68 hours, the system should automatically mark the employee as having a Continuous Contract.
2. Predictive Scheduling and Threshold Management
Operational managers need visibility into cumulative hours during scheduling to manage statutory costs effectively.
Threshold Alerts: Systems should flag employees approaching the 68-hour limit.
Impact Analysis: Managers should be able to see how adding a shift affects contract status and statutory entitlements.
3. Integration of Attendance and Statutory Benefits
Eligibility for benefits—rest days, paid annual leave, sickness allowance—is linked directly to 468 status. Systems should ensure seamless data flow between:
Time & Attendance: Capturing actual hours worked
Compliance Engine: Calculating rolling 4-week totals
Payroll/Leave Management: Automatically accruing entitlements once thresholds are met
Data Traceability and Audit Compliance
Accurate historical records are essential under the 468 rule:
Historical Accuracy: Systems must store granular clock-in/out data to support continuity verification.
Audit Trails: Adjustments to hours worked must be logged to maintain integrity of continuity determinations.
Industry Impact
The 468 rule has the most operational impact on sectors with variable demand and flexible staffing, including:
Retail and chain operations
Hospitality and hotels
Food and beverage services
Logistics and service-based industries
Employees in these sectors often fluctuate between 15–25 hours per week. Under the new rule, continuity may be established without any single week appearing non-compliant, which has implications for rostering, payroll, and benefits accrual.
Conclusion: System Readiness Is Critical
The shift from the 418 rule to the 468 rule moves compliance from policy interpretation to data processing. Organisations must ensure that their Workforce Management (WFM) infrastructure can:
Support rolling 4-week hour aggregation
Provide real-time visibility into cumulative hours
Maintain accurate historical records
Link scheduling, attendance, and payroll seamlessly
Many organisations are discovering that existing WFM systems were not designed for rolling 4-week calculations. Evaluating system readiness now is essential to ensure compliance by January 2026.
Learn how GaiaWorks’ compliance engine supports rolling 4-week calculations and real-time visibility for Hong Kong’s 468 rule.
FAQ: Hong Kong 468 Rule (for Employers)
Q1: When does the 468 rule take effect?
A: The 468 rule will come into force on 18 January 2026. Employers must ensure systems and policies are updated by this date to comply with the new cumulative-hour requirements.
Q2: Who is affected by the 468 rule?
A: All employees in Hong Kong are affected. The operational impact is most significant for organisations with part-time, shift-based, or variable-hour staff, including sectors like retail, hospitality, F&B, logistics, and services with flexible staffing models.
Q3: How does the 468 rule differ from the 418 rule?
A: The 418 rule required at least 18 hours per week for four consecutive weeks to establish continuous contract status. The 468 rule allows 68 total hours over any four consecutive weeks, so continuity can be maintained even if some individual weeks fall below the previous threshold.
Q4: What benefits do employees gain under the 468 rule?
A: Employees under a continuous contract are entitled to statutory benefits such as:
Paid rest days
Annual leave
Sick leave
Maternity/paternity leave
Long service payments and severance payments
The exact entitlements depend on individual eligibility and employment terms.
Q5: How should employers prepare?
A: Organisations should:
Review employment contracts to ensure thresholds are correctly defined
Update HR and payroll systems to track cumulative 4-week hours
Train HR personnel on new rules and system updates
Communicate changes clearly to staff
Consult legal or HR compliance experts for complex workforce arrangements
Q6: What are the risks of non-compliance?
A: Failure to comply could result in:
Regulatory penalties from the Labour Department
Employee claims for unpaid statutory benefits
Operational disruptions and reputational risk
Q7: Does the 468 rule affect freelancers or independent contractors?
A: Only individuals considered employees under Hong Kong law are affected. Freelancers or independent contractors are not entitled to statutory benefits under the Employment Ordinance. Determination depends on the substance of the working relationship, not the job title.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Employers should consult legal or HR compliance experts for guidance specific to their organisation.
