What is 418?
The term defined in 418 is 「continuous contract」. It is commonly known as Ordinance 418 in the HR circle in Hong Kong.
It means that an employee who has been employed continuously by the same employer for four weeks or more, with at least 18 hours worked in each week is further entitled to such benefits as paid annual leave, severance payment, and long service payment, etc.
Why is 418 important?
If an employee meets the conditions of Ordinance 418, in addition to basic rights and benefits, they can enjoy rights like rest days, paid annual leave, sickness allowance, severance payment and long service payment, etc.
Therefore, HR/employers should constantly check whether employees comply with Ordinance 418 to ensure that they gain appropriate rights and avoid legal risks.
The benefits of 418
After meeting the conditions of Ordinance 418, what rights should employers provide to employees?
- Rest days
- Holiday pay on statutory holidays after 3 months of continuous contract
- Paid annual leave after 12 months of continuous contract
- Provide sickness allowance
- Maternity leave
- Paternity leave
- Pay severance or long service payments when an employee leaves
- Employment protection against dismissal or change of employment contract
*We will regularly review the content of the Employment Ordinance to ensure that the content matches business needs.
Workstem is a cloud-based, one-stop HRM & Payroll platform, not only can we assist HR/employers to make schedule more in line with the Ordinance 418, but also can record attendance and clock-in/out accurately, and check whether the employees comply with the Ordinance 418 at any time.