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. 

• 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. 

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.)

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


 
• 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. 

• An employer is liable to pay the medical expenses for medical treatment which his injured employees receive, subject to a daily maximum as follows:
  
  
  1. either in-patient treatment or out-patient treatment: $200;
     
  2. both in-patient and out-patient treatment on the same day: $280
     

• 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 

• 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)

Click here for "Web-based Introductory Self-learning Programme on the Employees' Compensation Ordinance"

Click here for A Resource Kit on Employees' Compensation