Continuous Contracts Explained | From "418" to "468": Easier Access to Employee Rights for Part-Time and Casual Workers?
15/10/2026
The Employment (Amendment) Ordinance 2025 took effect on 18 January 2026, changing the continuous contract threshold from the long-standing "418" rule to the "468" rule. Part-time and casual employees with fluctuating hours now qualify more easily for statutory employee protection. This article compares the old and new regimes, identifies who benefits most, sets out practical points for employers, and clears up common misconceptions.
1. The old "418" rule
Under the old regime, an employee had to meet two conditions to be employed under a continuous contract:
- Employed continuously by the same employer for four weeks or more, and
- Working 18 hours or more per week.
Many part-time employees with fluctuating hours fell outside the safety net simply because they worked fewer than 18 hours in a particular week, missing out on paid annual leave, statutory holiday pay, sickness allowance and other rights.
2. The new "417/468" rule: two thresholds
The new regime keeps the "four continuous weeks" requirement but relaxes the hours threshold. An employee qualifies by meeting either of the following:
- Threshold one (417): working 17 hours or more per week, or
- Threshold two (468): where any week falls below 17 hours, working 68 hours or more in aggregate across that week and the preceding three weeks.
| Item | Old rule (418) | New rule (417/468) |
|---|---|---|
| Continuous employment | Four weeks or more | Four weeks or more (unchanged) |
| Hours requirement | 18 hours or more per week | 17 hours or more per week, or 68 hours or more in aggregate over four weeks |
| Employees with fluctuating hours | Disqualified if any week fell below 18 hours | Still qualify if the four-week aggregate reaches 68 hours |
3. Who benefits most
Employees whose hours fluctuate but whose overall hours are not low benefit most, such as part-time and casual workers in retail, catering and security. Once they qualify under a continuous contract, they are entitled to statutory rights including paid annual leave, statutory holiday pay, sickness allowance, maternity and paternity leave pay, severance payment and long service payment.
4. Practical points for employers
With the relaxed threshold, employers must keep more accurate time records. Employers are advised to:
- Review attendance and time-keeping systems to track hours by week and on a rolling four-week basis.
- Proactively assess whether existing part-time and casual employees already meet the new threshold, and budget for the associated statutory entitlements.
- Update the definition of continuous contract in employment contracts or staff handbooks, and stop using the old "418" wording.
5. Common misconceptions
Misconception one: all casual workers are automatically protected.
Hours are still counted under the new rule. Casual workers with very low hours (for example, fewer than 68 hours in aggregate over four weeks) still do not qualify. Protection is not automatic.
Misconception two: the new rule applies retrospectively.
It does not. Employment periods before 18 January 2026 are still assessed under the old "418" standard.
FAQs
Q: I am a part-time employee. How do I know if I qualify under the new rule?
A: First check whether you have been continuously employed by the same employer for four weeks or more, then count your hours. If you reach 17 hours per week, or 68 hours in aggregate over any four weeks, you qualify. If in doubt, ask your employer for your time records or seek legal advice.
Q: Can an employer cut hours to avoid the new threshold?
A: Employers may arrange working hours, but arrangements seen as deliberately evading statutory duties may give rise to disputes. Time records must be true and accurate. Employees who believe their rights are affected may approach the Labour Department or seek legal advice.
Reference
Readers may refer to the Labour Department's Notes for Preparing an Employment Contract, which sets out the new continuous contract requirement.
Take Action
If you have any questions about continuous contracts or employees' rights, please fill in our online enquiry form or call 2529 0383 to speak to our solicitors.
Disclaimer: This article is for general reference only and does not constitute legal advice. For specific legal issues, please consult a solicitor.
