Increase in statutory holidays on the Hong Kong horizon

Currently, all employees covered by the EO, regardless of their length of service, are entitled to 12 days of statutory holiday per year. Employees who have been continuously employed[1] in the 3-month period before a statutory holiday are also entitled to receive statutory holiday pay under the EO.

On the other hand, the GHO provides for 17 general holidays each year, in addition to Sundays, on which banks, educational establishments, public offices and government departments are not required to open. These general holidays include the 12 statutory holidays under the EO as well as five additional days off on Good Friday, the day following Good Friday, Easter Monday, the Buddha’s Birthday and the day following Christmas Day. An estimated 60% of employers choose to provide their employees with these five additional holidays. Whether they are paid or unpaid holidays is a matter for the employer.

Under the Amendment Bill, it is proposed that the EO will add one of the general holidays every two years to the list of statutory holidays under the EO starting from 1 January 2022, with the intention that all five additional holidays will be incorporated into the EO by 1 January 2030.

The proposed sequence of amendments is listed below:

While some legislators are of the opinion that this timetable for reform is too lengthy, other members of the Bills Committee have cautioned that accelerating the pace of change would put undue financial pressure on employers who are experiencing hardships resulting from the COVID-19 pandemic. The Government view is that it has already taken into account the interests of both employers and employees and, as such, considers that the above timetable strikes the most appropriate balance.

[1]An employee is regarded as being continuously employed under the EO if he/she has worked for the same employer for at least four weeks and worked for a minimum of 18 hours in each of those weeks.