Hong Kong
Relaxation of the "continuous contract" requirement
Impact date: 18 January 2026 On 18 June 2025, the Legislative Council passed the Employment (Amendment) Bill 2025, revising the definition of a “continuous contract” under the Employment Ordinance. The new threshold will take effect from 18 January 2026.
Under the current definition, a continuous contract requires an employee to work at least 18 hours per week for four or more consecutive weeks. This will be replaced by two alternative tests:
- The “417 rule” - an employee is deemed to be under a continuous contract if they work not less than 17 hours per week for four or more consecutive weeks, or
- The “468 rule” - an employee is deemed to be under a continuous contract if they work 68 hours or more in total over any four-week period
Employer implications/action needed After the new threshold comes into effect, existing short term or part time employees (who fall short of the 18-hour requirement per week) may be able to fulfil the “continuous contract” requirement and be entitled to more comprehensive benefits. Employers should seek legal advice on appropriate next steps where they may be affected, in particular the legal and financial implications that this proposed amendment may have on their workforce structure and payroll obligations.
Employer risk N/A
Privacy Commissioner for Personal Data (PCPD) published guidelines on the use of Generative AI in the workplace
Impact date: N/A The Office of the Privacy Commissioner for Personal Data (PCPD) issued a “Checklist on Guidelines for the Use of Generative AI by Employees” (the “Guidelines”), providing practical guidance for employers in developing internal policies and guidelines on the use of Gen AI tools by employees at work for compliance with the requirements of the Personal Data (Privacy) Ordinance.
The key considerations referred to in the Guidelines are summarized below:
Scope of permissible use
- Specify the Gen AI tools that are permitted within the company and the tasks or activities for which employees can use the Gen AI tools for
- Set out the scope of individuals to whom the policy applies (e.g. organisation-wide or department / rank / individual specific)
Protection of personal data privacy
- Provide clear instructions on the types and amounts of information that can and cannot be inputted into Gen AI tools
- Provide clear instructions on the permissible purposes for using the information generated by Gen AI tools, and whether, when and how personal data should be anonymized before further use
- Set out requirements regarding permissible storage of the output information
- Ensure that the policy aligns with the company’s other internal policies
Lawful and ethical use and prevention of bias
- Specify that employees shall not use Gen AI tools for unlawful or harmful activities
- Emphasize the need for employees to verify AI-generated output
- Alert employees on the prevention of bias and discrimination
- Provide clear instructions on when and how AI-generated output should be watermarked or labelled
Data security
- Specify permitted devices and users of Gen AI tools
- Require robust user credentials and stringent security settings for use of Gen AI tools
- Require employees to report AI incidents (e.g. data breaches, unauthorized input of personal data, abnormal output results) in accordance with the company’s AI incident response plan
Violation of the policies or guidelines
- Specify the potential consequences of employees’ violation of the policies or guidelines
Employer implications/action needed Adopting the recommendations outlined in the Guidelines represents a crucial first step for businesses seeking to establish a framework that governs the responsible use of generative AI tools in the workplace. Implementing such internal policies not only safeguards personal data but also lays the groundwork for the safe, ethical, and effective integration of AI technologies across business operations.
Employer risk N/A
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