8. What is the difference between statutory annual leave and contractual annual leave?

Statutory annual leave is the annual leave that must be given to employees under the Employment Ordinance (see “Holiday/annual leave/sick leave/maternity leave and their relevant payments”). The remaining balance may be called contractual annual leave. For example, if an employee is entitled to 16 days of leave upon completion of the first year of service pursuant to the employment contract, then 7 days out of the 16 days are known as statutory annual leave and the remaining 9 days are contractual annual leave.