On 7 July 2021, the Legislative Council of Hong Kong passed the Employment (Amendment) Bill 2021 which increases the number of statutory holidays under the Employment Ordinance (the "EO") by five days, starting with the Birthday of the Buddha holiday in May 2022. Please see our Legal Update Hong Kong's Employment (Amendment) Bill 2021 for details.

What Should Employers Do?

  1. An employee who has been employed under a continuous contract for not less than three months by the employer is entitled to statutory holiday pay. The EO prescribes a rate of statutory holiday pay which is generally the average wage earned in the 12 months immediately before the statutory holiday. Employers should review their calculations and update their systems to ensure that they pay not less than the prescribed statutory holiday pay in respect of the additional statutory holidays. 
  2. If an employee is required to work on a statutory holiday, then the employer must ensure that it complies with obligations under the EO to give notice of and grant an alternative holiday or substituted holiday within the prescribed timeframes. If the statutory holiday falls on a statutory rest day, an employer must grant a holiday on the next day that is not a statutory, alternative or substituted holiday or statutory rest day. Employers should review its arrangements taking into account the additional statutory holidays to ensure that they comply with the EO.
  3. Employers should also review and update their contracts of employment and relevant holiday policies to reflect the increase in statutory holidays, if necessary. 

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.