How should I handle compensation claims after my employee has sustained work-related injury?

When your employee gets injured at work due to an accident arising out of and in the course of employment, they have the right to make an employees’ compensation claim against you for compensation pursuant to the Employees’ Compensation Ordinance (Cap. 282). Nevertheless, whether you are liable to pay them compensation, you are still responsible to take certain steps to comply with your responsibilities under the Employees’ Compensation Ordinance (Cap. 282):

• Notify the Labour Department of the incident in Form 2 or Form 2B pursuant to section 15 of the Employees’ Compensation Ordinance (Cap. 282): A deadline is stipulated for submitting the form – 14 days after the incident for a case of a work-related injury.
• Require your employee to go for a free medical examination by a registered dentist or a registered Western or Chinese medical practitioner named by you
• If there is doubt, conduct a preliminary investigation of the incident
• Contact your insurer for any follow-up action that may be appropriate
• Formulate guidelines for the company in handling employees’ compensation cases: This would help you to handle these cases in an effective manner and ensure that any employees’ compensation payments and periodical payments are paid timely in accordance with the law.

Generally, the employer is liable to pay certain payments to their employee who has sustained work-related injury:

• Medical expenses: This should be paid to your employee within 21 days from when your employee has submitted the medical expenses receipts to you.
• Periodical payments: The amount is calculated at four-fifths of the difference between your employee’s monthly earnings at the time when the accident occurred and during the period of their temporary incapacity.
• Compensation: The amount would be stated in Form 5 (Certificate of Compensation Assessment) as provided by the Labour Department. The compensation needs to be paid to your employee within 21 days from the date that Form 5 is issued.

Key takeaways

• After your employee has sustained a work-related injury, you are advised to take steps to ensure that you comply with your legal responsibilities.
• Generally, you, as the employer, is liable to pay certain payments to your employee for the work-related injury that they have sustained, including medical expenses, compensation and periodical payments.

Bibliography:

1. Hong Kong Government, ‘How to Handle Compensation Claims after Work Injury’: https://www.gov.hk/en/residents/employment/employee/workinjury.htm#:~:text=periodical%20payments%20at%20the%20rate,payment%20of%20medical%20expenses%3B%20and

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