From 418 to 468: What It Means for Property Management HR

On 18 June 2025, the Legislative Council of HKSAR passed the Employment (Amendment) Bill 2025 (“the Bill”), which revises the “continuous contract” requirement under the Employment Ordinance (Cap. 57). This amendment aims to make it easier for employees to qualify for comprehensive employment benefits by relaxing the conditions that define continuous employment, including those with irregular or part-time schedules.

Under the current Employment Ordinance, the so-called “418 rule” defines a continuous contract of employment as when an employee works for the same employer for at least 18 hours per week over four or more consecutive weeks. Employees meeting this threshold qualify for statutory benefits such as paid annual leave, sickness allowance, and severance payments.

The new “468 rule” lowers the weekly hours threshold from 18 to 17 hours and, importantly, allows the calculation of working hours on an aggregate basis over any consecutive four-week period. Specifically, an employee will be deemed to have a continuous contract if they work a total of at least 68 hours over four consecutive weeks—even if in some individual weeks they work fewer than 17 hours.

The Employment (Amendment) Bill 2025 will be gazetted on 27 June 2025. The revised “continuous contract” requirement will take effect on 18 January 2026.

Impact on Human Resources Operations in the Property Management Industry

The recent amendments to the Employment Ordinance’s continuous contract requirement will bring notable changes to human resources management within Hong Kong’s property management industry. Given the industry’s reliance on part-time, flexible, and shift-based workers, understanding these impacts is key to maintaining operational efficiency and compliance.

1. Expanded Eligibility for Statutory Benefits
With the weekly work-hour threshold reduced from 18 to 17 hours and the introduction of an aggregate 68-hour rule over four weeks, more part-time and irregular workers—such as security guards, cleaners, and maintenance staff—will qualify for continuous contracts. This means a larger portion of the workforce will be entitled to statutory benefits like paid leave, sickness allowance, and severance payments, increasing employers’ administrative and financial responsibilities.

2. Complex Workforce Scheduling and Compliance Challenges
The shift from a fixed weekly hour threshold to an aggregate calculation over four weeks adds complexity to tracking employee work hours. HR teams must monitor rolling four-week periods and maintain accurate records to avoid misclassification and legal risks. This requires flexible scheduling and robust record-keeping to ensure compliance.

3. Strategic Manpower Planning Amid Cost Pressures
The expanded scope of continuous contracts may increase labor costs, especially with the recent statutory minimum wage adjustment to HKD 42.1 per hour. Property management companies will need to optimize manpower deployment by revisiting shift patterns and contract terms, balancing compliance with cost control.

4. Preparing for Enforcement and Ongoing Regulatory Oversight
Continuous vigilance and transparent HR practices are essential. Companies should prepare for increased government scrutiny and audits by ensuring full compliance in employee records and contracts.

Leveraging Human Resource Management Systems to Navigate the Changes

To effectively manage these new challenges, property management companies can benefit from adopting advanced Human Resource Management Systems (HRMS).

• Accurate Time Tracking and Compliance:
A capable HRMS automates the monitoring of working hours over rolling four-week periods, ensuring compliance with the new “468 rule” and reducing manual errors in determining continuous contract eligibility.

• Flexible Workforce Scheduling:
The system supports dynamic shift planning tailored to irregular and part-time work patterns common in property management, helping HR teams optimize manpower deployment while maintaining compliance.

• Streamlined Payroll and Benefits Administration:
Integration of payroll with attendance data allows for automated calculation of statutory benefits such as paid leave and severance, minimizing administrative workload and improving accuracy.

• Real-Time Reporting and Audit Readiness:
Advanced reporting features provide HR managers with up-to-date insights into labor costs and compliance status, and facilitate preparation for regulatory audits through transparent record-keeping.

By selecting an HRMS designed to address these specific needs, property management firms can better manage the operational impact of legislative changes, reduce risks, and improve overall workforce management.

Conclusion

The 2025 amendments to the Employment Ordinance represent a significant shift in Hong Kong’s labor landscape, broadening the scope of employees entitled to statutory protections. For the property management industry, where flexible and part-time work is common, understanding and adapting to these changes is essential.

Proactive adoption of technology-driven HR solutions will be a key enabler for companies to navigate the complexities of the new continuous contract rules, ensuring legal compliance while sustaining operational efficiency and quality of service.

Reference: https://www.info.gov.hk/gia/general/202506/18/P2025061800282.htm?fontSize=1