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(407) EMPLOYMENT 7 - A SIMPLE GUIDE TO EMPLOYERS ON COMPENSATION

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The Employees' Compensation Ordinance applies to all full-time or part-time employees who are employed under contracts of service or apprenticeship, including domestic helpers, agricultural employees, crew members of a Hong Kong ship, and any person employed in any capacity on board of a Hong Kong ship. The Ordinance also applies to employees employed in Hong Kong by local employers injured while working outside Hong Kong. Even if the employer is a person carrying on business outside Hong Kong, or the employee is a crew member of a foreign ship, the Ordinance still applies to employees who have been recruited or engaged in Hong Kong if the employer submits to the jurisdiction of the Courts of Hong Kong.

An employer must notify the Commissioner for Labour within 14 days of any work accident or prescribed occupational disease after it came to his knowledge, irrespective of whether the accident or occupational disease gives rise to any liability to pay compensation. If an employee dies as a result of work accident, his employer must notify the Commissioner for Labour within 7 days.

An employer is obliged to pay his injured employee periodical payments at the rate of four-fifths of the difference between the employee"s monthly earnings at the time of the accident and his monthly earnings during the period of his absence from duty as certified by registered medical practitioner, registered Chinese medicine practitioner or registered dentist. The periodical payments shall be payable on the same days as wages would have been payable to the employee.

If the injured employee's sick leave is not more than 3 days and with no permanent incapacity, the employer should make periodical payment for the sick leave required, on the same days as wages would have been payable to the employee and also pay the medical expenses concerned so as to settle the case.

If the injured employee's sick leave is over 3 days but not more than 7 days and with no permanent incapacity, the employer can enter into direct settlement agreement with the employee on the sum of compensation payable under the Ordinance and make such payment on or before the day which wages would have been payable to the employee and also pay the medical expenses concerned. The employer should include relevant details in Part H of the "Notification of Accident", that is, Form 2, so as to settle the case.

If the injured employee's sick leave is over 7 days or the injury would likely results in permanent incapacity, after the employer has reported the case and admitted the employees" compensation liability, the Labour Department will arrange for the employees medical clearance and, if necessary, medical assessment. The Employees" Compensation Assessment Board will issue to the employer and the employee a Certificate of Assessment (Form 7) stating the assessment result. Besides, the Labour Department will issue to the employer and the employee a Certificate of Compensation Assessment (Form 5) stating the amount of compensation payable under the Ordinance. The employer should pay the employee within 21 days from the date of issue of the certificate the amount of compensation, or any outstanding amount, stated in the certificate. The employer should also pay the medical expenses concerned. Where appropriate, the employer should urge the employee to undergo medical clearance and assessment.

An employer shall not terminate the contract of service or give notice of termination to an employee injured in a work accident unless the relevant certificate has been issued or the case has been settled.

Besides, according to the Employees' Compensation Ordinance, no employer shall employ any employee in any employment unless there is in force a policy of insurance to cover their liabilities both under the Ordinance and at common law for injuries at work in respect of all their employees, irrespective of the length of employment contract or working hours, full-time or part-time, permanent job or temporary employment.

For further enquiries on the Ordinance, please call enquiry hotline of Labour Department at 2717 1771. The hotline is handled by "1823 Call Centre".

Date of amendment: 22nd February 2013