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Hong Kong Employment Ordinance quick guide: continuous contract, leave, severance and termination

The ten most-searched points of the Employment Ordinance on one page: a one-line answer for each, the official section and Labour Department guide chapter, and links to this site’s calculators and articles.

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Ten frequently searched points

Continuous contract

A contract is continuous if the employee has worked for the same employer for 4 weeks and for at least 17 hours in each week (a week under 17 hours still counts if the employee worked at least 68 hours in that week and the three weeks before it). The new threshold applies from 18 Jan 2026; before that it was 18 hours a week (the “418” rule). The employer must prove a contract is not continuous if disputed.

Official source
Employment Ordinance s. 3 and First Schedule para. 2A; Concise Guide chapter 1. Amendment: Employment (Amendment) Ordinance 2025 (27 of 2025).
On this site

When wages must be paid

Wages fall due at the end of the wage period and must be paid as soon as practicable and no later than 7 days afterwards. Unless the contract says otherwise the wage period is taken to be 1 month. Interest is payable on wages left unpaid beyond 7 days. Sums due on termination (other than severance payment) must also be paid within 7 days.

Official source
Employment Ordinance ss. 22, 23, 25 and 25A; Concise Guide chapters 3 and 9.
On this site

Probation and notice

For a contract expressly on probation, either side may end it in the first month without notice or payment in lieu; after the first month at least 7 days’ notice is needed (longer if the contract says so). For a continuous contract not on probation the notice is the agreed period but not less than 7 days, or 1 month if the contract is silent. Payment in lieu can replace notice.

Official source
Employment Ordinance ss. 6 and 7; Concise Guide chapter 9.
On this site

Rest days

An employee under a continuous contract is entitled to at least one rest day in every 7 days, meaning a continuous period of not less than 24 hours free of work for the employer. Whether a rest day is paid is for the parties to agree. The employer must not compel work on a rest day except in unforeseen emergencies such as a machinery breakdown.

Official source
Employment Ordinance ss. 17 to 20; Concise Guide chapter 4.
On this site

Statutory holidays and public holidays

Statutory holidays are those fixed by the Ordinance: 15 days in 2026 (Easter Monday is newly added), rising to 16 from 2028 and 17 from 2030. Public (general) holidays are gazetted by the Government: 17 days in 2026 excluding Sundays, so the two counts differ. An employee under a continuous contract for at least 3 months is entitled to holiday pay for statutory holidays. The official guide sets out employer duties only for statutory holidays; check your contract and the Labour Department for the other public holidays.

Official source
Employment Ordinance ss. 39, 40 and 41; Concise Guide chapter 4; GovHK general holidays for 2026.
On this site

Paid annual leave

After every 12 months under a continuous contract an employee earns paid annual leave: 7 days in each of years 1 and 2, rising by one day a year to 14 days from year 9. The employer sets the timing after consulting the employee, with at least 14 days’ written notice; only the part above 10 days can be paid in lieu if the employee chooses.

Official source
Employment Ordinance ss. 41AA, 41B and 41C; Concise Guide chapter 4.
On this site

Sickness allowance

An employee under a continuous contract can claim sickness allowance for sick leave of at least 4 consecutive days supported by a proper medical certificate, if enough paid sickness days have been accumulated. The daily rate is 4/5 of average daily wages. Paid sickness days accrue at 2 per completed month in the first 12 months and 4 per month afterwards, up to 120 days.

Official source
Employment Ordinance ss. 33 and 35; Concise Guide chapter 5.
On this site

Maternity and paternity leave

Maternity leave: a woman under a continuous contract is entitled to 14 weeks. With at least 40 weeks’ continuous employment she gets maternity leave pay at 4/5 of average daily wages, with a cap of HK$80,000 for weeks 11 to 14. Paternity leave: an eligible man gets 5 days for each confinement of his spouse or partner, paid at 4/5 of average daily wages after 40 weeks’ continuous employment and with the required documents.

Official source
Employment Ordinance ss. 12 and 14 (maternity) and ss. 15E to 15L (paternity); Concise Guide chapters 6 and 7.
On this site

Severance payment and long service payment

Severance payment: 24 months under a continuous contract and dismissal by reason of redundancy, a fixed-term contract not renewed by reason of redundancy, or lay-off. Long service payment: 5 years and dismissal (other than summary dismissal for serious misconduct or redundancy), or a fixed-term contract not renewed, and similar cases. Not both. The amount is (last full month’s wages × 2/3, capped at HK$15,000 a year) × years of service, up to HK$390,000. The MPF offsetting arrangement was abolished from 1 May 2025 (not retrospective).

Official source
Employment Ordinance ss. 31B to 31ZE; Concise Guide chapter 11 and Appendix 2.
On this site

Ending the contract

Either side may end the contract by giving notice or payment in lieu. An employer may dismiss summarily only for wilful disobedience of a lawful and reasonable order, misconduct, fraud or dishonesty, or habitual neglect of duties. Dismissal is prohibited during notified pregnancy, paid sick leave, or because of evidence given to the authorities or trade-union activity. Termination payments (other than severance payment) are due within 7 days of termination.

Official source
Employment Ordinance ss. 6, 7, 9, 10 and 25; Concise Guide chapters 9 and 10.
On this site

How the rules work

  • The Ordinance applies to all employees except, for example, family members living with the employer, employees covered by the Contracts for Employment Outside Hong Kong Ordinance and seafarers under crew agreements. Only employees under a “continuous contract” get the further entitlements such as rest days, paid annual leave, sickness allowance, severance payment and long service payment.
  • This page summarises the key points of common provisions. The Ordinance itself is the only legal authority and the guide is revised from time to time. Each entry gives the section numbers so you can check the text on e-Legislation.
  • What counts as “wages” (allowances, commission, overtime pay and so on) affects the basis for annual leave pay, sickness allowance, holiday pay and severance. The averaging method is in Appendix 1 of the Labour Department’s guide.

Frequently asked questions

What replaced the “418” continuous-contract rule?
From 18 Jan 2026 a contract is continuous if the employee has worked for the same employer for 4 weeks and worked at least 17 hours in each week, or, for a week under 17 hours, at least 68 hours in that week and the three weeks before it. The earlier test was 18 hours a week (the “418” rule). The change comes from the Employment (Amendment) Ordinance 2025.
How long can a probation period be?
No section of the Ordinance sets a maximum probation period; its length is agreed in the contract, and the employment must be expressly agreed to be on probation. The Ordinance mentions probation only for notice, pro rata end-of-year payment (up to three months of probation excluded) and protection of pregnant employees (12 weeks).
Are statutory holidays and public holidays the same thing?
No. Statutory holidays are those the Ordinance entitles employees to (15 days in 2026). Public (general) holidays are those gazetted by the Government (17 days in 2026, excluding Sundays). The official guide sets out employers’ duties only for statutory holidays, so check your contract and the Labour Department about the other public holidays.
Can I receive both severance and long service payment?
No. An employee is not entitled to both at once. Severance payment needs 24 months under a continuous contract and a redundancy dismissal or similar; long service payment needs 5 years and one of the termination situations listed in the Ordinance. The calculator on this site can estimate the amount.
Can this page replace legal advice?
No. It is a summary; real cases turn on the contract, how pay is made up and the facts. For disputes contact the Labour Department’s Labour Relations Division or take professional advice.

Sources and data dates

Data as of
Labour Department’s Concise Guide to the Employment Ordinance (finalised December 2025) and the current Cap. 57 on e-Legislation (read 8 October 2026); the 2026 statutory holidays and the new continuous-contract threshold are included
Checked on
2026-10-08

Every parameter was checked against the official pages listed here and will be revised when they change. Where an official page is silent or ambiguous, this page says to rely on the official source.

Disclaimer

These results are general information only. They are not tax, legal or financial advice and do not guarantee any outcome. Actual amounts and eligibility are decided by the Labour Department and the other bodies concerned.

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