468 New regulations have been implemented – can your HR system deliver early warnings and end-to-end compliance?

Workstem provides a one-stop solution for mid-to-large enterprises: from real-time work hour forecasting during scheduling, to automatic alerts when contract threshold are at risk during attendance tracking, to accurate calculation of 12-month Average Daily Wages (ADW) and estimation of statutory costs, and direct API integration with the eMPF platform for MPF submissions and tax filing allow every decision to be based on accurate data and full compliance.

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Why Hong Kong companies need the "468/418 Employee Management Solution"?

On 18 January 2026, the Employment Ordinance introduced the new “468” rule, replacing the previous “18 hours per week” threshold with “68 hours over 4 consecutive weeks.” For mid-to-large enterprises managing full-time, part-time, and casual employees, this change goes beyond a new threshold. From scheduling and payroll to statutory entitlements, MPF contributions, and tax filing the entire workforce management process must be reviewed.

HR Challenges in 468/418 Compliance

Lack of predictable scheduling – risks of threshold being unnoticed

Scheduling often focuses only on weekly staffing needs, without visibility into cumulative hours over a rolling 4-week period. Part-time employees may unknowingly approach the 68-hour threshold, with no alert until after attendance is recorded and contract status has already changed leaving businesses unprepared for the cost impact.

Disconnected attendance data — no real-time trigger visibility

Actual work hours sometimes differ from schedules due to overtime, shift changes, or ad-hoc work. Most systems cannot consistently track each employee’s cumulative hours across rolling 4-week periods, making it difficult for HR to receive timely alerts before thresholds are exceeded.

Complex ADW calculations — statutory costs are hard to quantify

Once a continuous contract is triggered, entitlements such as annual leave, statutory holiday pay, sickness allowance, and severance pay must be calculated based on 12-month ADW. With multiple pay components such as base salary, commission, bonuses and overtime allowance, manual calculation is time-consuming and error-prone, making cost forecasting difficult and employee queries hard to prove.

Limited integration with eMPF and tax filing — manual and error-prone

Changes in contract status directly affect MPF obligations and tax reporting. Without direct integration with the eMPF platform, HR teams must manually prepare CSV files and update IR56 forms, creating inefficiencies and increasing the risk of errors or omissions.

The Workstem 468/418 Employee Management Solution

Workstem is built for Hong Kong's compliance, fully aligned with the latest requirements for 468/418, ADW, and eMPF. Following a structured workflow of "forecast schedule → attendance alerts → ADW and cost estimation → MPF and tax filing — the system connects every stage of compliance into a complete, closed loop.

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Intelligent Rostering — Identify Compliance Risks Early

  • Work hour forecasting: Automatically calculates projected cumulative hours over the next 4 weeks during scheduling, showing remaining hours to the 68-hour threshold.
  • Threshold alerts: Notifies managers when scheduled hours approach the limit, with clear risk indicators.
  • Informed decisions: Adjust schedules or accept statutory implications based on real data instead of corrections after it happened.

Real-Time Attendance Monitoring — Instant Alerts and Control

  • Automated tracking: Monitors actual hours and days worked across rolling 4-week periods, identifying 468/418 status automatically
  • Proactive alerts: Notifies HR and managers before thresholds are exceeded. Option to restrict clock-ins when employees are close to exceeding limits
  • Status tracking: Every contract status change is recorded, with automatic accrual of statutory entitlements

ADW Automation and Cost Estimation — Plan Ahead with Accuracy

  • Automatic ADW calculation: Based on full payroll history, aligned with Labour Department guidelines, with exclusions applied correctly
  • Comprehensive pay coverage: Includes commission, bonuses, and overtime; synced directly from approved attendance data. Supports weekly, hourly, and monthly pay with unlimited calculations within a month
  • Cost forecasting: Instantly estimates additional statutory costs when continuous contracts are triggered, with exportable reports

Unlimited Calculations — Seamless eMPF and Tax Integration

  • End-to-end sync: The system captures complete attendance data including overtime, leave, and absences to determine 468 eligibility and statutory entitlements. Data flows directly into payroll for accurate calculations, with unlimited pay runs within the month.
  • Direct eMPF API integration: Submit contribution statements in one click, covering both integrated trust and industry schemes such as construction and F&B.
  • Secure and compliant: OAuth 2.0 authorisation with real-time error reporting for quick checking if submission fails.
  • Automated tax filing: Generates IR56B, IR56F, IR56H forms, ensuring all eligible employees are correctly reported minimising omissions or errors.

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Frequently Asked Questions

How does the system determine if an employee meets the “468” requirement?

The system automatically tracks each employee’s actual working hours across rolling 4-week periods. Once the 68-hour threshold is reached, continuous contract status is triggered and recorded, with full audit logs available for export.

How is Average Daily Wage (ADW) calculated?

The system retrieves salary records for the 12 months prior to the specified date (or actual employment period if shorter) and calculates ADW according to the Employment Ordinance, including all relevant pay components. Detailed breakdowns are available for export.

Which MPF schemes are supported?

Workstem supports major master trust schemes (e.g. HSBC, Manulife, Sun Life, AIA) and industry schemes such as construction and F&B, with direct API integration to the eMPF platform.

How are onboarding and offboarding handled for high-turnover workforces?

Employees can complete onboarding via the mobile app. For offboarding, managers can terminate access with one click, while the system automatically calculates final pay and processes MPF arrangements.

Can multiple entities be managed under one system?

Yes. Workstem supports multi-entity structures, allowing HR and management to view and manage compliance across entities within a single account.

What documents can be provided during Labour Department inspections?

Continuous contract determination records, ADW calculation details, and statutory entitlement logs can all be exported instantly for audit or legal review.

Is the system compliant with the Personal Data (Privacy) Ordinance?

Yes. Workstem is hosted on AWS Hong Kong, ISO/IEC 27001:2022 certified, and uses strict access controls and OAuth 2.0 authorisation to ensure compliance.

Can the system integrate with existing ERP or finance systems?

Yes. Workstem offers REST APIs, a developer platform, and native integrations with Xero, NetSuite, and Microsoft Power Automate. Payroll journals can be exported without manual re-entry.