What is Continuous Contract ("418") ? What is the new requirement ("468 Rule") which will take effect from 18 Jan 2026?

For an employment period before 18 January 2026, an employee is required to be employed continuously by the same employer for four weeks or more and has worked for at least 18 hours or more each week ("418") to meet the “continuous contract” requirement. 

The new “continuous contract” requirement will become applicable starting from 18 January 2026.  Under the new requirement, the weekly working hours threshold are lowered to 17 hours.  An alternative criterion of using the aggregate working hours for 68 hours or more in a specified four-week period is also introduced.  An employee is regarded as being employed under a “continuous contract” if the following criteria are met :

1. the employee has been employed continuously by the same employer for four weeks or more and he has worked for at least 17 hours in each week (example 1); or
2. the employee has been employed continuously by the same employer for four weeks or more and he has worked for 68 hours or more in a four-week period comprising that week and the three weeks next preceding that week (the “468 Rule") (example 2).

After the amendments, the existing eligibility criteria for various statutory benefits will remain unchanged.  For instance, employees are required to be employed under a “continuous contract” for not less than three months immediately preceding a statutory holiday in order to be entitled to the holiday pay, and every period of 12 months for annual leave with pay.  

Other information on the new “continuous contract” requirement: 

• Video  
• Education tool 

In any dispute as to whether a contract of employment is a continuous contract, the onus of proving that it is not a continuous contract shall be on the employer.

This is not a legal document. The Ordinance remains the sole authority for the provisions of the law explained.