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Paid Annual Leave for Continuous Contract of Employment (418 Rule)
Paid Annual Leave for Continuous Contract of Employment (418 Rule)

Contract of Employment

Nicholas avatar
Written by Nicholas
Updated over 3 years ago

According to Hong Kong Employment Ordinance, if the employment meets the criteria of continuous contract of employment (418), in addition to basic benefits and employees' rights, the employee can also enjoy additional statutory rights such as paid annual leave.ย 

A continuous contract of employment simply means 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 regarded as being employed under a continuous contract.

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According to Employment Ordinance, if the number of annual leave entitled is 10 days or less and if the employee plans to apply leave, up to 3 days can be granted separately and the rest of the leaves should be granted consecutively. If the number of annual leave entitled is more than 10 days, then the employee can request a consecutive leaves of at least 7 days.

However, most companies would allow employees to apply their paid annual leave in a flexible arrangement.

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For now, we don't auto keep track an employee who has been employed continuously by the same employer for 4 weeks or more, with at least 18 hours worked in each week. In Talenox, once you have entered the Hired Date, it is considered as an active employee with a "continuous contract/agreement". ๐Ÿ˜€

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