Employment Disputes
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3. Should employees be paid for their statutory holidays?

Employees who have been employed under continuous contracts for not less than three months immediately preceding a statutory holiday are entitled to holiday pay.

Holiday pay is a sum equivalent to the normal wages that employees would have earned if they had worked on a full working day. For employees who are employed on piece rates or whose daily wages vary from day to day, the holiday pay should be a sum that is equivalent to the average daily wages earned on the days worked during every complete wage period. The wage period should be a period of not less than 28 days and not more than 31 days immediately preceding or expiring on the holiday. (Note: Although wages cover contractual commission, the Court of Final Appeal has held in the case of Lisbeth Enterprises Limited v Mandy Luk that no commission is to be included in the calculation of holiday pay and annual leave pay unless the relevant commission is calculated on daily basis. However, there is a possibility that the relevant ordinance provision may be amended in future.)

Employees who, in normal circumstances, only work half a day on Saturdays and receive half a day’s pay are entitled to a full working day’s pay as holiday pay if a statutory holiday falls on Saturday.