Immediate Impact after 468 launched

As of January 18, 2026, the implementation of the "468 Rule" has begun reshaping Hong Kong’s labor landscape. Just one month in, we’re already witnessing significant shifts in the casual and part-time workforce, ushering in a more flexible legal framework.

Key Impacts After One Month:

• Wider Benefit Qualification: Over 11,400 additional employees now qualify for a "continuous contract." The new measure considers a total of 68 hours over four weeks instead of a rigid 18 hours each week, making benefits more accessible.

• Closure of Scheduling Loopholes: Employers can no longer manipulate schedules to avoid providing benefits. The rule effectively closes gaps that previously allowed for intentional reductions in hours.

• Operational Strain on HR: Many businesses are feeling the strain as they navigate increased administrative demands. Employers must now track working hours over a rolling four-week period, pushing many to upgrade their HR systems or engage Employer of Record services.

  
  

• Rising Labor Costs: Industries that rely heavily on part-time labor, such as retail and catering, are experiencing escalating labor costs due to a surge in eligible benefits, including paid leave and statutory holiday pay.

  
  

• Enhanced Labor Supply: The Labour Department anticipates that the new measures will encourage individuals with irregular schedules to return to the workforce, potentially alleviating early 2026 manpower shortages.

Immediate Checklist for Employers:

• Audit contracts to align with the new employment definitions.

• Verify historical records for affected employees.

• Train rostering managers on continuity definitions, ensuring they understand that a zero-hour week does not necessarily break continuity if total hours meet the new threshold.

In summary, the "468 Rule" is already making waves in Hong Kong’s employment market. It's crucial for employers to adapt quickly to this new legal standard to ensure compliance and leverage the benefits that come with a more engaged workforce.