Hong Kong employment law: 2025 review and 2026 outlook

Hong Kong’s employment regulatory landscape saw notable developments in 2025, including changes to minimum wage and mandatory contributions, an expanded Mandatory Reference Checking Scheme and strengthened diversity obligations for listed companies. With further changes scheduled to take effect in 2026, employers should assess their readiness and plan ahead.

2025 at a glance

Mandatory Reference Checking scheme

In July 2025, the Hong Kong Monetary Authority ("HKMA") announced phase two of its Mandatory Reference Checking Scheme, which was implemented in September 2025. The Scheme tackles ‘rolling bad apples’ by enabling banks to share up to seven years of conduct-related references under a common protocol, to inform hiring decisions. Phase one covered senior regulated roles across banking and insurance (find out more here). Phase two extends the Scheme to a far wider group, including employees licensed or registered to carry on securities, insurance or Mandatory Provident Fund regulated activities.

Minimum Wage and Mandatory Provident Fund offsets

In May 2025, Hong Kong’s statutory minimum wage increased by 5.3% to HK$42.10 (from HK$40). The previous adjustment was in 2023 following a four-year freeze.

Also in May 2025, the arrangement permitting employers to offset long service and severance payments against mandatory contributions to the Mandatory Provident Fund was discontinued, following the passage of the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance in 2022 (find out more here).

Diversity requirements for Hong Kong listed companies

Following amendments to the Hong Kong Stock Exchange's ("HKEX") Corporate Governance Code and related Listing Rules, enhanced diversity requirements took effect on 1 July 2025. HKEX-listed issuers must now (a) ensure their nomination committee includes at least one director of a different gender; (b) adopt and disclose a workforce diversity policy alongside a board diversity policy; and (c) provide separate disclosures of gender ratios for senior management and for the overall workforce, among other measures.

On the horizon for 2026

Minimum Wage Rate

In its Policy Address of 17 September 2025, the Hong Kong Government announced the adoption of a new mechanism, comprising a formula proposed by the Minimum Wage Commission, to implement annual reviews of the statutory minimum wage rate. The first rate determined under this mechanism is expected to take effect on 1 May 2026.

Trade Unions (Amendment) Ordinance 2025

The Trade Unions (Amendment) Ordinance 2025 was gazetted on 4 July 2025 and will commence on 5 January 2026. It aims to safeguard national security and strengthen union regulation through measures including: empowering the Registrar to refuse registration or amalgamation where necessary to protect national security, disqualifying officers or promoters convicted of national security offences, restricting the organisations of which trade unions may be members, regulating the receipt and use of contributions or donations from foreign forces and increasing penalties for non‑compliance.

The gig economy and platform workers

In October 2025, Hong Kong passed a bill to regulate ride‑hailing platforms. Once in force, it will require platforms to hold a dedicated licence and comply with prescribed conditions: drivers must meet eligibility criteria (including age, a clean driving record and completion of mandatory assessments), and vehicles will be capped at 12 years old. The regime is expected to take effect in October 2026 at the earliest.

The Government also announced plans to strengthen platform workers’ rights, with proposals to be set out in legislation following consultation with platform companies, the labour sector, academics and the insurance industry. Work‑injury compensation is expected to be a central focus.

“417 / 468” Rule

On 18 June 2025, Hong Kong’s Legislative Council passed amendments to the Employment Ordinance revising the “continuous contract” threshold. With effect from 18 January 2026, an employee will be regarded as employed under a continuous contract if they have been employed by the same employer for four weeks or more and satisfy either of the following: they work at least 17 hours in each week, or, where any week falls below 17 hours, they reach a total of 68 hours or more across the relevant four‑week period. In the event of a dispute about continuous contract status, the burden of proof rests with the employer. Until the new test takes effect, the existing “418 rule” continues to apply (requiring 18 hours per week for four consecutive weeks for a continuous contract). Continuous contract status determines entitlement to statutory benefits, including paid annual leave, sickness allowance, statutory holiday pay, maternity/paternity leave, and severance and long service payments. Find out more here.

Key takeaways

Employers should consider the following (non-exhaustive) practical steps in preparation:

• Mandatory Reference Checking Scheme: Update hiring processes and policies to implement phase two and train HR on interpreting references, documenting decisions consistently and avoiding bias.
• Minimum wage and MPF offsets: Plan for annual minimum wage updates, and update payroll and termination processes accordingly.
• HKEX diversity obligations: For HKEX‑listed issuers, ensure nomination committees include at least one director of a different gender, adopt and disclose a workforce diversity policy alongside the board diversity policy and establish compliant reporting of gender ratios for senior management and the wider workforce.
• Trade union compliance: Update policies, procedures and training to reflect the new trade union requirements.
• Gig economy and platform workers: If operating a platform, prepare to obtain the platform licence and comply with prescribed conditions.
• Continuous contract thresholds: If hiring part‑time or irregular‑hours staff, track weekly and rolling four‑week hour thresholds, maintain robust records and update benefits policies to reflect eligibility.

For tailored advice on implementing these changes, please contact our Hong Kong employment team.

Our team at RPC are widely recognized as leading employment lawyers in Hong Kong. We are of the few specialist employment law practices in Hong Kong and we act for both employers and employees on contentious and non-contentious matters.

Please do not hesitate to contact our Partner and Head of the Employment Practice in Hong Kong, Andrea Randall for any queries regarding the issues raised in this article or any employment law related queries you may have.

All material contained in this article is provided for general information purposes only and should not be construed as legal, accounting, financial or tax advice, or as opinion to any person or specific case. RPC accepts no responsibility for any loss or damage arising directly or indirectly from action taken, or not taken, which may arise from reliance on information contained in this article. You are urged to seek legal advice concerning your own situation and any specific legal question that you may have.