Yes, you are obliged to purchase insurance for your employees to protect your company against any potential liability that may arise when there is an accident at work, as the insurance allows you to compensate your employee who suffers from a job injury or death.
What does the insurance cover?
Employees are covered by the Employees’ Compensation Ordinance for injuries arising because of or during the period of employment. All Hong Kong employers are liable to compensate their employees who are employed by an employment contract for their work injury, occupational disease, and death in the course of their employment.
Employers are required to take out a policy of insurance concerning such liability, irrespective of the length of employment contract or working hours, full-time or part-time, permanent job or temporary employees.
An employer who failed to buy compulsory insurance for employees is subject to a maximum fine of $100,000 and imprisonment for two years.
Amount of insurance
The minimum insurance cover is determined based on the number of employees.
| No. of Employees | Amount of Insurance Cover per Event |
|---|---|
| ≤ 200 | not less than $100 million |
| > 200 | not less than $200 million |
When your employee suffers a work injury
The employer must notify the Commissioner for Labour of any work accident or prescribed occupational disease.
| Resulting in | Notice Period | Form |
|---|---|---|
| Work injury | Incapacity for a period not exceeding 3 days | Form 2b (https://www.labour.gov.hk/eng/form/ecd/pdf/f2b.pdf?formref=LAB-F14) |
| Incapacity for a period exceeding 3 days | Within 14 days | Form 2 (https://www.labour.gov.hk/eng/form/ecd/pdf/f2.pdf) |
| Death | Within 7 days | Form 2a (https://www.edb.gov.hk/attachment/en/sch-admin/admin/about-sch/sch-safety/19EC%20Form%2020A_E.pdf) |
| Occupational disease | Incapacity | |
| Death | Within 7 days |
The employer should notify the insurer (not the insurance broker) as soon as possible, within the stipulated period and in the specified format (in writing or by specified form) required by the insurer
You should seek legal advice or approach your insurer if you are unsure of what to do.
Bibliography
- Labour department, ‘Frequently Asked Questions about The Employees’ Compensation Ordinance, Cap. 282’: https://www.labour.gov.hk/eng/faq/cap282a_whole.htm#q1