Hong Kong to close loophole allowing employers to avoid providing benefits to part-time workers

A labour regulation exploited by some firms in Hong Kong to avoid providing benefits to part-time staff will be revised after representatives of the city’s employers and employees reached a consensus on greater protection for such workers.

Unions welcomed the move on Thursday, saying it would plug a long-standing loophole in the “418” regulation but a catering industry leader warned the change would increase the financial burden of restaurants, especially less-profitable ones.

Under a 30-year-old rule, only people working for the same employer for four consecutive weeks or more for at least 18 hours each week are considered to be hired under a “continuous contract”, entitling them to benefits such as rest and sick days, and paid annual leave.

The regulation will be amended soon to ease the criteria for part-timers to get benefits.

“This is, of course, good news for us as it can plug the loophole and stop some unconscionable employers from exploiting part-time workers. They include the Hong Kong Jockey Club,” said legislator Michael Luk Chung-hung of the Federation of Trade Unions (FTU).

“Some employers intend to evade employment benefits so they may ask their staff to work many hours in each of the first three weeks and fewer than 18 hours in the fourth week.”

Employer and employee representatives on the Labour Advisory Board reached a consensus on the amendment, under which the total number of working hours will be calculated based on a four-week period instead of one week and a threshold set at 68 hours.

The measure was among labour initiatives announced in Chief Executive John Lee Ka-chiu’s policy address last October.