Pedestrians use a crossing in Hong Kong's Central district on Jan 29, 2024. (SHAMIM ASHRAF / CHINA DAILY)

Representatives of employees and employers welcomed the Hong Kong Special Administrative Region government advisory body’s decision to ease the definition of “continuous contracts” by lowering the minimum working hours it requires from 72 to 68 in four consecutive weeks – which allows more laborers working shorter hours to get statutory employees’ benefits.

The Labour Advisory Board estimated that over 10,000 employees could benefit from the proposed changes, resulting in an approximate additional expenditure of HK$150 million ($19.2 million) for employers and businesses across the city.

After thorough deliberations during Thursday’s meeting, members of the board agreed to drop the weekly 18 hours requirement and require only 68 hours employment for four consecutive weeks in total

The move, welcomed by the Hong Kong SAR government, is subject to the approval of the city’s legislature before the law can be amended.

READ MORE: HK’s labor shortage solution must protect workers 

Currently, full-time or part-time workers, who work 18 hours a week for the same employer for four weeks or more, will be deemed as being engaged under a “continuous contract”. If they are applied to the Employment Ordinance, they will be eligible for statutory holiday pay, paid annual leave, sickness allowance and other benefits. It is also known as the “418 requirement”.

In his Policy Address in 2023, Chief Executive John Lee Ka-chiu expressed the government’s intention to relax the requirement of “continuous contracts” to support local workers. A prerequisite for turning the proposal into reality is getting the consensus of the board – a nonofficial consultative body made up of six members representing employees and six representing employers. Their mission is to advise the Commissioner for Labour on labor issues.

After thorough deliberations during Thursday’s meeting, members of the board agreed to drop the weekly 18 hours requirement and require only 68 hours employment for four consecutive weeks in total.

A government spokesperson said on Thursday that the revision aims to strengthen the protection of rights and benefits of workers with shorter working hours. The government will report to the Legislative Council’s Panel on Manpower and work on the relevant amendment bill soon.

The Hong Kong Federation of Trade Unions welcomed the consensus on Thursday, saying the new arrangement will benefit more part-time workers and attract potential labor into the job market.

The federation said it estimated that about 200,000 employees are currently not hired on “continuous contracts”, and hopes the revision can provide more benefits for them.

FTU Vice-chairman Lam Wai-kong, who represents employees on the board, told a radio program that the change is “acceptable”, saying that he hopes it can boost labor force participation and attract more women and middle-aged people back into the workforce. However, he cautioned that some employers may attempt to cut corners. 

Speaking on the same program, Ricky Chan Wai-chung, executive deputy chairman of the Federation of Hong Kong Industries who represents employers on the board, said he hopes the revision can help alleviate the labor shortage that many of the city’s industries are experiencing. 

READ MORE: Hong Kong's jobless rate sees further decline to 2.8%

The changes will force business owners to spend more on part-time workers, Chan said, while urging the government to boost the economy as soon as possible, saying a favorable economic outlook will support employers to expand recruitment.

In addition to welcoming the proposed revision, the Federation of Hong Kong and Kowloon Labour Unions called on the government to establish a clear exit mechanism for imported workers.

It also urged the authorities to ensure equal employment opportunities for women and middle-aged workers, and to establish a more flexible work mode that enables employees to strike a balance between work and family life.

Contact the writer at lindaxi@chinadailyhk.com