In Hong Kong, annual leave entitlements are governed by the Employment Ordinance (Cap. 57), which outlines the minimum statutory requirements for paid leave. These provisions apply to employees under a continuous contract and ensure fair leave based on length of service.
Eligibility
Employees become eligible for paid annual leave after completing 12 months of continuous employment with the same employer.
Annual Leave Entitlement by Years of Service
The number of annual leave days increases with seniority:
Years of Service | Annual Leave Entitlement |
1 year | 7 days |
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 or more years | 14 days |
Scheduling and Taking Leave
Employers can decide the timing of annual leave but must provide at least 14 days' notice, unless a shorter notice period is mutually agreed upon.
Leave must be taken within 12 months following the end of the leave year.
Leave should generally be granted in a continuous block. However, it can be split under the following conditions:
If entitlement is 10 days or fewer: Up to 3 days may be taken separately; the remainder must be consecutive.
If entitlement exceeds 10 days: At least 7 days must be taken consecutively.
Payment During Annual Leave
Employees are entitled to receive their average daily wages during annual leave. This average is calculated over the past 12 months, excluding periods such as unpaid leave or sickness absence.
Encashment of Leave
Employees may choose to accept payment in lieu of any portion of their annual leave exceeding 10 days. The first 10 days must be taken as leave and cannot be cashed out.
This progressive system rewards long-term employment while ensuring a fair work-life balance for employees.