Paid time off

Hong Kong's paid time off entitlements are governed by the Employment Ordinance, which establishes statutory minimum leave requirements for all employees. The current framework provides employees with annual leave, statutory holidays, and sick leave, each with distinct accrual and usage rules.

Annual leave accrues at a rate of one day per month of continuous employment, totaling twelve days per year for employees with twelve months of service. Employees are entitled to receive payment for untaken annual leave upon termination of employment. Statutory holidays in Hong Kong number twelve days annually, including New Year's Day, Lunar New Year, Ching Ming Festival, Dragon Boat Festival, Mid-Autumn Festival, Christmas Day, and others. Employers must either grant these days off with full pay or, if operational requirements necessitate work, provide an alternative day off within a specified period and pay double wages for the working day.

Sick leave operates differently, with employees entitled to two days of paid sick leave per month, capped at ten days annually during the first year of employment. After one year of service, the entitlement increases to four days per month, capped at twenty days annually. Employees must provide medical certification for absences exceeding three consecutive days.

The Employment Ordinance, administered by the Labour Department, forms the legal foundation for these entitlements. Recent amendments have maintained these core provisions, though employers should verify current rates with the Labour Department for any updates.

Employers and payroll teams must accurately track accrual, ensure timely payment, maintain proper documentation of leave taken, and comply with notice requirements when employees request leave. Failure to provide statutory leave entitlements can result in significant penalties.