Annual Leave in Hong Kong: Information for Employees

Annual Leave in Hong Kong: Information for Employees

In Hong Kong, employees are entitled to paid annual leave after completing 12 months of continuous employment, with the number of days increasing with years of service. The Employment Ordinance dictates that employers must compensate employees for their annual leave, either by providing paid leave or a sum equivalent to the pay they would have received during the leave.

Understanding your rights and obligations regarding annual leave in Hong Kong can significantly impact your work-life balance and overall well-being. Given its importance, both for employees looking to recharge and employers managing workforce expectations, staying informed about annual leave policies is crucial. 

This article will guide you through the basics of annual leave in Hong Kong, breaking down your entitlements based on years of service, clearly explaining the rules around payment and compensation during your leave, and providing a concise roundup of what you need to know to plan your time off wisely. 

Basics of Annual Leave in Hong Kong

After completing 12 months of continuous employment in Hong Kong, you earn the right to paid annual leave. Let's delve into the basics of this entitlement.

Overview of Employment Ordinance

The Employment Ordinance governs the annual leave policies in Hong Kong. It outlines the minimum requirements that employers must adhere to regarding your leave entitlements. 

Your entitlement to paid annual leave increases progressively from 7 days to a maximum of 14 days, based on your length of service:

Years of Service

Annual Leave Entitlement

1

7 days

2

7 days

3

8 days

4

9 days

5

10 days

6

11 days

7

12 days

8

13 days

9 or above

14 days

Eligibility for Annual Leave

  1. You are entitled to annual leave with pay after having been employed under a continuous contract for every 12 months.
  2. You shall take the paid annual leave to which you are entitled within the following period of 12 months.
  3. The timing of the leave should be appointed by your employer after consultation with you or your representative, confirmed by a written notice at least 14 days in advance, unless a shorter period has been mutually agreed.

Breakdown of Annual Leave Entitlements

Your annual leave entitlements in Hong Kong are determined by your years of service under a continuous contract. Here's a breakdown of the annual leave in hong kong you're entitled to:

Statutory Leave Entitlements

As per the Employment Ordinance, your annual leave hk entitlement increases progressively based on your length of service:

  • 1-2 years: 7 days
  • 3 years: 8 days
  • 4 years: 9 days
  • 5 years: 10 days
  • 6 years: 11 days
  • 7 years: 12 days
  • 8 years: 13 days
  • 9 years or more: 14 days

You must take the paid annual leave within the following 12 months after completing every 12 months of service. Your employer should appoint the leave timing after consulting you, providing at least 14 days' written notice unless a shorter period is mutually agreed upon.

Additional Leave Provisions by Employers

Some employers may offer additional hong kong annual leave days beyond the statutory requirements. These contractual leave days are at the employer's discretion and can vary across companies.

Annual Leave in Hong Kong

For instance, if your contract entitles you to 16 days of annual leave after the first year, 7 days would be statutory leave, and the remaining 9 days would be contractual leave.

Payment and Compensation Rules for Annual Leave

When taking annual leave in hong kong, it's essential to understand the rules governing leave payment and compensation. These regulations ensure fair practices and protect your rights as an employee.

Leave Payment Calculation

Your employer must pay you for the annual leave hk take based on your daily or monthly wage rate, depending on your payment mode. The calculation is as follows:

  1. For daily-rated employees, the leave pay is calculated by multiplying your daily wage rate by the number of days of annual leave taken.
  2. For monthly-rated employees, the leave pay is calculated by dividing your monthly wage by the number of days you're required to work in that month, and then multiplying the result by the number of days of annual leave taken.

Permissible Compensation Practices

The Employment Ordinance allows for certain compensation practices during hong kong annual leave:

  1. Your employer can provide you with an annual leave pay period, during which you'll receive your normal wages while on leave.
  2. Alternatively, your employer can pay you a further sum in lieu of granting the statutory annual leave entitlement. This sum should be equivalent to the pay you would have received for the leave days.

It's important to note that your employer cannot unilaterally offset the annual leave pay against any other sum due to you, such as your end-of-year payment or double pay. The leave pay must be provided separately and distinctly.

Conclusion

Navigating the rules and entitlements of annual leave in Hong Kong is fundamental for maintaining a healthy work-life balance. Throughout this article, we've explored the essential aspects of annual leave, including the statutory guidelines under the Employment Ordinance, eligibility criteria based on years of service, and payment regulations.

[Guide] How To Become A Company Secretary In Hong Kong

By understanding these key factors, employees can make informed decisions about their holidays, ensuring they fully benefit from their entitlements while employers can manage workforce expectations more effectively.