Rest Days, Statutory Holidays and Paid Annual Leave under the Employment Ordinance Labour Department. Hong Kong k~~si*r I UNIVERSITY OF HONG KONG LIBRARY REST bAYS, STATUTORY HOLIDAYS AND PAID ANNUAL LEAVE UNDER THE EMPLOYMENT ORDINANCE This guide defines three distinct types of statutory benefits for employees provided by the Employment Ordinance and explains their different applications. 2 The Employment Ordinance is applicable to non-manual workers earning not more than 52,000 a month and manual workers irrespective of the amount of their wage earnings. It provides for, among other things, 52 rest days, ten statutory holidays and seven days of annual leave in a year. 3 References are made to "continuous contract" in this guide. It is one where the employee has worked for the same employer for four weeks or more, prior to a given date, on at least three days in each of the four weeks and for not less than six hours on each day. REST DAYS Qualifications for entitlement 4 Every employee covered by the Employment Ordinance, who has worked for the same employer under a "continuous contract", is entitled to one rest day in every period of seven days. 5 Women and young persons employed in industry are entitled to a day off in a wreek under the Factories and Industrial Undertakings Regulations and are not permitted to wwk on their rest days. Appointment of rest days 6 Before the beginning of each month, the employer must appoint the rest days of his employees. If these are on a regular basis and always fall on a particular day of the week, it is sufficient for the employer to inform his employees of this arrangement. Otherwise, before the beginning of each month, the employer must inform all his employees of the appointed rest days during the month. He may do this orally or in writing or by displaying a roster showing the dates of the appointed rest days for each employee and specifying the effective period of the roster. Changing the rest days 7 An employer may substitute some other rest day with the consent of the employee, in which case it must be within the same month and before the original rest day or within 30 days after it. Compulsory work on rest days 8 In the event of a breakdown of machinery or plant or in any other unforeseen emergency, the employer may require the employee to work on the original rest day but he must within 48 hours, notify the employee of the date of the substituted rest day which must be given within 30 days following the original one. 1 Voluntary work on rest days 9 An employee may, at his own request and if his employer agrees, work on a rest day. An employer may ask an employee to work on a rest day and the employee is free to agree or not as he wishes. An employer cannot compel an employee to work on a rest day except in the circumstance described in the preceding paragraph. Rest days and annual bonus 10 A condition In a contract of employment which makes payment of any type of annual bonus conditional on an employee agreeing to work on rest days is void. Pay for rest days 11 The ordinance does not deal with this question. It will depend upon the express or implied conditions in the oral or written contract of employment. STATUTORY HOLIDAYS (HOLIDAYS WITH PAY) Holiday entitlement 12 All workers covered by the Employment Ordinance are entitled to ten statutory holidays in a year as follows: (a) the first day of January (b) Lunar New Year's Day (c) the second day of Lunar New Year (d) the third day of Lunar New Year (e) Ching Ming Festival (/) Tuen Ng (Dragon Boat) Festival (g) the day following the Chinese Mid-Autumn Festival (h) Chung Yeung Festival (/) Chinese Winter Solstice Festival or Christmas Day at the employer's option (./) a "floating" holiday "Floating" holiday 13 This holiday shall be designated by an employer and notified to each of his employee by notice at the end of the preceding year. This notice should be posted in a conspicuous place in the place of employment throughout the year in which the holiday is granted. If the employer does not designate this holiday, then it will automatically fall on the first week day in July or the first Monday in August of the year at the employer's option. Alternative holiday 14 An employer may give his employee an alternative holiday within 60 days before or after a statutory holiday, provided he informs the employee 48 hours before the alternative holiday, if he intends to give it during the 60 days preceding the statutory holiday; or 48 hours before the statutory holiday itself, if he intends the alternative holiday to be given within 60 days after the statutory holiday. Substituted holiday 15 If the employer and employee agree, any day within 30 days of a statutory holiday or alternative holiday may be taken by the employee as a substituted holiday. Women and young persons 16 Women and young persons in industry are required by law to be given one rest day a week. If a statutory holiday or any holiday in lieu falls on a rest day, the holiday should be given on the day following the rest day. Holiday pay entitlement 17 If an employee has worked under a "continuous contract" for his employer for three months preceding a statutory holiday, he is entitled to be paid for that holiday. Holiday pay shall be a sum equivalent to the wages, other than overtime pay, which the employee would have earned if he had worked on the day. Where an employee is employed on piece rates or where the daily wages of an employee vary from day to day, the holiday pay shall be a sum equivalent to the average daily wages earned by the employee on the days on which he had worked during the period of 28 days preceding the holiday. Payment must be made on the normal pay day. PAID ANNUAL LEAVE Qualification for entitlement 18 With effect from 1st January 1978, an employee is entitled to seven days of annual leave with pay after serving 12 months under a "continuous contract** with the same employer. Any employment, however, during 1977 under a continuous contract which does not terminate before 1st January 1978 will qualify for annual leave. Time for the grant of annual leave 19 Paid annual leave shall be granted by an employer within the period of 12 months following the completion of a 12-month period of employment under a "continuous contract". The time of the leave shall be appointed by the employer after consultation with the employee or his representatives. 20 An employer must give his employee not less than 14 days' notice in writing of the time he has appointed for the grant of annual leave. If agreed to by both parties, a shorter period of notice may be given. Manner of granting and taking annual leave 21 Annual leave must be granted by the employer and taken by the employee in such manner that the employee has, within the period of 12 months during which that leave is required to be granted, a period of not less than seven consecutive days of absence from work. This period may be comprised entirely of annual leave or comprised partly of annual leave, the other days being statutory holidays or rest days. 22 If an employee so requests, the employer shall grant him instead of seven consecutive days of annual leave, a minimum of four consecutive days of annual leave at one time during the 12-month period concerned and, at another time during the same periodic remaining days of annual leave, if any, either consecutively or separately in accordance with paragraph 19 above. 23 If a rest day falls within, the period of seven consecutive days of absence from work as described in paragraph 21, it will be counted as annual leave and another rest day must be substituted. Total incapacity for work 24 A period of total incapacity for work by reason of sickness or injury may not be counted as part of a period of annual leave unless it commences after the commencement of the annual leave. Payment and rate of annual leave pay 25 Payment of annual leave pay in respect of a period of annual leave must be made not later than the day on which an employee is next paid his wages after the leave. 26 Annual leave pay shall be a sum equivalent to the wages, other than overtime pay, which the employee would have earned if he had worked during the period of annual leave. Where an employee is employed on piece rates or where the wages of an employee vary from day to day, the annual leave pay shall be calculated by reference to the average daily wages earned during the period of 28 days preceding the period of annual leave, or the termination of the contract of employment as the case may be. Annual leave pay on termination of employment 27 On termination by either party for whatever reason including dismissal under section 9 of the Employment Ordinance after 12 months* employment under a "continuous contract", for which an employee has not been granted paid annual leave or the whole of such leave, he shall be entitled to payment in lieu of untaken annual leave. 28 On termination by either party after three but less than 12 months' employment under a "continuous contract", for whatever reason excluding dismissal under section 9 but including resignation, an employee shall be paid a pro rate sum in lieu of annual leave equal to seven days' pay times the number of completed weeks of employment divided by 52, together with his entitlement in the preceding paragraph, if any. 29 All such payments must be made as soon as practicable and in any case not later than seven days after termination, Annual leave shutdown 30 An employer who intends to close down his business or part of it for the purpose of granting annual leave must give one month's written notice of Ms intention to do so to every employee who will, as a result, have to take annual leave or stop work during the period of closure. 31 To comply with this requirement of notice, a notice of the closure containing the names of all employees who will thus be affected may be exhibited in a conspicuous place in the place of employment not later than one month before commencement of the period of closure. Instead of actually naming the employees the employer may provide such details in the notice as to clearly identify them. 32 Every person who is an employee at the commencement of the period of closure and who is otherwise not entitled to annual leave pay in respect of any day during that period shall be allowed that day as annual leave and be paid annual leave pay by the employer. Any annual leave with pay allowed in such circumstances shall be deemed to have been granted in respect of a period of 12 months' employment under a "continuous contract" ending immediately before the period of closure. Annual leave records 33 Every employer must keep a record of: (a) the date of commencement and termination of i) the employment of each employee; ii) all periods of annual leave taken by each employee; and iii) all periods of closure of business or part thereof for the purpose of granting any annual leave to any of his employees; and (b) all annual leave pay received by each employee. OFFENCES AND PENALTIES 34 An employer who fails to comply with provisions relating to rest days, statutory holidays or paid annual leave may be guilty of an offence and liable, upon conviction, to a fine of $5,000 for each offence. APPENDIX Offices of the Labour Relations Service of the Labour Department are: Labour Relations Service (Hong Kong Island) Hong Kong Regional Office New Rodney Block Queen sway, Hong Kong Tel No. 5-282523 Ext. 60 Labour Relations Service (Kowloon East) San Po Kong Government Offices Prince Edward Road San Po Kong, Kowloon Tel. No. 3-205638 Labour Relations Service (Kowloon West) San Po Kong Government Offices Prince Edward Road San Po Kong, Kowloon Tel. No. 3-201652 Labour Relations Service (Kwun Tong) Kwun Tong District Branch Office Building Tung Yan Street Second Floor Kwun Tong, Kowloon Tel. No. 3-898520 Labour Relations Service (Tsuen Wan) Chartered Bank Building Third Floor Tsuen Wan, New Territories Tel No. 12-422096 Labour Relations Service (Tuen Mun) 39, Tak Ching Court Tuen Mun New Town New Territories Tel. No. 12-818443 Printed by J. R. Lee, Government Printer at tne Government Press, Java Road, Hong Kong 75013—600L—11/77