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EMPLOYEES'
COMPENSATION ORDINANCE, CHAPTER 282 The Employees' Compensation
Ordinance establishes a no-fault, non-contributory employee compensation system
for work injuries. Major provisions of the Ordinance are : Application
- An employer is liable to pay compensation in respect of
injuries sustained by his employees as a result of an accident arising out of
and in the course of employment; or in respect of occupational diseases specified
in the Ordinance suffered by the employees.
- The Ordinance in general
applies to employees who are employed under a contract of service or apprenticeship.
Employees who are injured while working outside Hong Kong are also covered if
they are employed in Hong Kong by local employers.
Assessment
of Loss of Earning Capacity - A two-tier
system - Employees' Compensation (Ordinary Assessment) Board and Employees' Compensation
(Special Assessment) Board - is provided for to assess the necessary period of
absence from duty and the percentage of loss of earning capacity permanently caused
to the employee as a result of the work injury.
Major
Compensation Items Compensation
in fatal cases
| Age
of deceased employee | Amount
of compensation | | under
40 | 84 months* earnings or HK$303,000
whichever is higher | | 40
to under 56 | 60 months* earnings or
HK$303,000 whichever is higher | | 56
or above | 36 months* earnings or HK$303,000
whichever is higher |
| * | Monthly earnings is subject to a maximum of
HK$21,000 for the purpose of calculating compensation in fatal cases. |
Funeral and medical attendance
expenses in fatal cases - Any person who has paid funeral of
and/or medical attendance expenses on an employee who died in a work-related accident
is entitled to claim reimbursement from the employer of the deceased employee
of such expenses not exceeding $35,000.
(This is only applicable
to accidents happened on or after 1 August 2000.) For
"How to Apply for Employees' Compensation for Death", please click here Compensation
in cases of permanent total incapacity
| Age
of injured employee | Amount
of compensation | | under
40 | 96 months* earnings or HK$344,000
whichever is higher | | 40
to under 56 | 72 months* earnings or
HK$344,000 whichever is higher | | 56
or above | 48 months* earnings or HK$344,000
whichever is higher | * Monthly earnings is
subject to a maximum of HK$21,000 for the purpose of calculating compensation
in permanent incapacity. Periodical
Payment - An employee is entitled to receive
periodical payments during the period of temporary incapacity (sick leave) up
to 24 months. The payment should be calculated as follows:
| ( | Monthly
earnings at the time of the accident | less | Monthly
earnings after the accident | ) | X
4/5 |
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- If the employee's temporary incapacity lasts
more than 24 months, he may apply to the Court for an extension of his entitlement
for the payment. The extended period shall not be longer than 12 months.
Medical
Expenses - The daily maximum of medical expenses
payable by the employer are as follows -
i. | the
medical expenses for each day of stay in the hospital where an employee is given
medical treatment as an in-patient: | HK$200 | ii. | the
medical expenses for each day on which an employee is given medical treatment
other than as an in-patient in a hospital: | HK$200 | iii. | the
medical expenses for each day on which an employee is given medical treatment
both as an in-patient in a hospital and other than as an in-patient in a hospital: | HK$280 |
Settlement of Claims
- Depending on the nature of the case, a claim for employees'
compensation can be settled in the following ways:
- Direct Payment
- Direct Settlement
- Settlement
by Certificate
- Settlement by Court
Compulsory
Insurance - An employer must be in possession
of a valid insurance policy to cover his liabilities both under the Employees'
Compensation Ordinance and at common law for the work injuries for his employees.
For
any information concerning the list of insurers underwriting employees' compensation
insurance, please click here to access to the relevant website of the Hong Kong
Federation of Insurers. Click
here for A Concise Guide to the Employees' Compensation Ordinance (with
frequently asked questions on common employees' compensation issues)
(PDF)
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