Paid time off

Hong Kong's statutory paid time off entitlement requires employers to provide a minimum of 14 days of paid annual leave to employees who have completed one year of continuous service. This leave is separate from public holidays and represents the baseline protection for full-time and part-time workers across all sectors.

The entitlement covers vacation days that employees may take for rest and personal purposes. Employers must grant this leave at times mutually agreed with employees, though operational needs may influence scheduling. Unused leave cannot be forfeited; employers must either allow carryover or provide payment in lieu upon termination of employment. The daily rate for leave payment is calculated based on the employee's ordinary rate of pay.

This requirement is established under the Employment Ordinance (Cap. 57), the primary legislation governing employment relationships in Hong Kong. The Ordinance sets minimum standards that apply to all employees regardless of contract type, though individual employment agreements may offer more generous terms.

Hong Kong's paid leave framework has remained stable at 14 days annually for many years. However, the Employment Ordinance continues to be subject to periodic review by the Labour Department, and amendments addressing leave provisions are periodically proposed.

Employers and payroll teams must track annual leave accrual from the first day of employment, ensure leave is granted or compensated before contract termination, and maintain accurate records of leave taken and remaining balances. Payment calculations must reflect the employee's actual ordinary rate, including any regular allowances. Disputes over leave entitlements can be escalated to the Labour Tribunal, making proper documentation essential for compliance.