Labour Advisory Board Report-Image
Labour Advisory Board
Activities in the 2013-2014 Term
Committee on Employees' Compensation
Committee on Employment Services
Committee on the Implementation of International Labour Standards
Committee on Labour Relations
Committee on Occupational Safety and Health
Committee on Employees' Compensation

4.1 Introduction
  The Committee on Employees’ Compensation (CEC) has been in place since August 1986 to give advice on the effectiveness of the employees’ compensation system and related legislation.

4.2 Terms of Reference
  The committee is established to:

  • review the employees’ compensation system in Hong Kong;
  • advise on legislative proposals on employees’ compensation and review existing legislation; and
  • advise on measures to be adopted by the Labour Department (LD) to improve the administrative machinery related to employees’ compensation.

4.3 Composition
  Members of CEC are appointed by the Commissioner for Labour. The composition of the committee for the 2013-2014 term is as follows:

  Chairman:   Deputy Commissioner for Labour (Labour Administration)
  Members:   Three employer representatives from the Labour Advisory Board (LAB)
      Three employee representatives from LAB
      An employer representative from outside LAB
      An employee representative from outside LAB
      A representative nominated by the insurance industry
      A representative from a concern group on employees’ compensation
      A representative nominated by the Hospital Authority
      A representative nominated by the Director of Legal Aid
      Assistant Commissioner for Labour (Employees’ Rights and Benefits)
      Occupational Health Consultant (1) of LD
  Secretary:   A Labour Officer of LD

The membership list of CEC for the 2013-2014 term is at Appendix I.

4.4 Activities during the 2013-2014 Term
  During the 2013-2014 term, CEC discussed the following matters:

Amendments to employees’ compensation legislation and work of LD in the area of employees’ compensation

  • CEC noted the improvements made to the employees’ compensation legislation in 2012 below:
    • Three resolutions were passed by the Legislative Council (LegCo) on 17 July 2012 to increase the amounts of a total of 15 compensation items under the Employees’ Compensation Ordinance (ECO), the Pneumoconiosis and Mesothelioma (Compensation) Ordinance (PMCO) and the Occupational Deafness Compensation Ordinance (ODCO) in line with the changes in the wage and price levels and other relevant factors in the 2009-2011 period. The revised levels of compensation took effect from 21 July 2012. A three-year review was conducted as against the very special circumstances of the substantive impacts of the implementation of Statutory Minimum Wage on wage and price levels since May 2011. The established practice of conducting a review every two years was resumed henceforth.

    • Two resolutions were passed by LegCo on 17 July 2012 to respectively lower the levy rate from 0.25% to 0.15% under PMCO and increase the levy rate from 0.4% to 0.5% under the Construction Industry Council Ordinance, with the overall levy rate remaining unchanged, such that the Construction Industry Council could have additional resources to implement new initiatives for supporting the development of the construction industry. The new levy rates took effect from 20 August 2012.
  • CEC noted the work of LD in handling employees’ compensation claims in 2012 and 2013, its publicity and public education campaigns to enhance public understanding of the rights and responsibilities of employees and employers under ECO as well as its inspection and enforcement efforts relating to the Ordinance.

Review of the levels of compensation under ECO, PMCO and ODCO

CEC agreed on a proposal to raise the amounts of a total of 18 compensation items under ECO, PMCO and ODCO in line with the positive changes of the relevant adjustment indicators in the review period of 2012-2013. The proposal was subsequently submitted to LAB for consideration (see paragraph 3.2).