The government plans to relax the continuous contract rule under the Employment Ordinance from "418" to "468" (i.e., employees who work for the same employer for a total of 68 hours over four consecutive weeks will be protected under relevant employment laws) to strengthen the statutory employment benefits for part-time employees. The legislative process is expected to be completed within 2025.
The "broken 418" phenomenon has flaws, as employees who do not meet the "418" criteria (non-418 employees) are unable to enjoy statutory employment benefits, allowing employers to reduce costs.
Employers and HR professionals need to consider the following after the "468" legislation is enacted:
- Continued Employment of Non-418 Employees: Whether to continue employing non-418 employees, as changes to working hours may require modifications to employee contracts, and unilateral changes could be seen as constructive dismissal.
- Calculation of Continuous Employment Contracts: Continuous employment contracts will be calculated based on "468" instead of "418." Employers might consider hiring employees under "467" to save costs, but this could lead to staffing shortages.
Employers and HR professionals should prepare before the legislative amendments, considering how to employ staff based on business conditions to establish good and stable employment relationships.
The changes to the aforementioned regulations will help and impact staffing in the catering and hotel industries:
- Increased Flexibility and Appeal:
By relaxing the continuous contract requirement from "418" to "468," more part-time employees will enjoy statutory employment benefits such as holiday pay, paid annual leave, and sickness allowances, thus increasing the appeal of the catering and hotel industries to freelancers, homemakers, and other part-time workers.
- Greater Recruitment Flexibility:
With more individuals able to enjoy full benefits, the catering and hotel industries can arrange working hours and staff more flexibly, helping to address staffing shortages.
- Encouragement of Diverse Recruitment:
These changes also encourage the catering and hotel industries to recruit more talents from diverse backgrounds and experiences, including freelancers and homemakers eager to enter the workforce, enriching the talent pool and enhancing business diversity.
- Promotion of Employment Opportunities:
More people will be able to join the catering and hotel industries under flexible working arrangements, providing more employment opportunities for those who desire to participate in the workforce but need flexible hours, such as part-time or casual workers.
These changes to the regulations will help attract more people into the labor market, unleashing valuable labor resources, alleviating the staffing shortages in the hotel and catering sectors, increasing staffing flexibility, and providing opportunities for more individuals seeking flexible work, thereby promoting industry growth and diversity and creating a win-win situation for businesses and employees.
