Labour Advisory Board Report 2015-2016

Chapter 4
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
CEC 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 2015-2016 term is as follows:

Deputy Commissioner for Labour (Labour Administration)
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
A Labour Officer of LD

The membership list of CEC for the 2015-2016 term is at Appendix I.
4.4  Activities during the 2015-2016 Term
During the 2015-2016 term, CEC discussed the following matters:

Amendments to Employees’ Compensation Legislation and Work of LD in the Area of Employees’ Compensation

  • CEC noted three resolutions were passed by the Legislative Council on 4 February 2015 to increase the amounts of a total of 18 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 2012-2013 period. The revised levels of compensation took effect from 5 March 2015.
  • CEC noted the work of LD in handling employees’ compensation claims in 2014 and 2015, 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 to ensure employers’ compliance.
  • CEC noted the work progress of the Task Force on Improving Work Injury Protection for Employees in High-risk Industries coordinated by LD.
Adjustment 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 period of 2014-2015. The proposal was subsequently submitted to LAB for consideration (see paragraph 3.2).