Understanding the Employees’ Compensation Ordinance in Hong Kong
The Employees’ Compensation Ordinance (ECO) is a crucial legal document in Hong Kong that outlines the rights and obligations of employers and employees concerning injuries or death caused by workplace accidents or prescribed occupational diseases. This ordinance ensures that employees are protected and compensated fairly, regardless of fault or negligence. In this blog post, we will delve into the key aspects of the ECO, including its coverage, features, and benefits.
Coverage and Scope of the ECO
The ECO applies to all full-time and part-time employees in Hong Kong, including those employed under contracts of service or apprenticeship. It also extends to employees working outside Hong Kong if they are employed by local employers, and to employees of foreign employers if the employer submits to the jurisdiction of the Hong Kong Courts and the employees were recruited in Hong Kong.
Types of Coverage
Injuries and Death from Accidents: The ECO requires employers to provide compensation to employees who sustain injuries or death as a result of accidents arising out of and in the course of their employment. This includes medical expenses, periodical payments for temporary incapacity, and compensation for permanent total or partial incapacity.
Prescribed Occupational Diseases: The ordinance also covers prescribed occupational diseases listed in the Second Schedule. Employers must notify the Commissioner for Labour of any such disease, even if it does not result in a liability to pay compensation.
Key Features of the ECO
Compensation for Injuries
Medical Expenses: Employers are required to cover all medical expenses related to the injury, including treatment from registered medical practitioners, Chinese medicine practitioners, and dentists, until the attending practitioner certifies that no further treatment is required.
Periodical Payments: Injured employees receive periodical payments at the rate of four-fifths of the difference between their monthly earnings at the time of the accident and their monthly earnings during the period of temporary incapacity.
Compensation for Permanent Incapacity: The amount of compensation for permanent total or partial incapacity is calculated based on the age and monthly earnings of the injured employee at the time of the accident. The Employees’ Compensation Assessment Boards, appointed by the Commissioner for Labour, assess the percentage of loss of earning capacity using the First Schedule of the ordinance.
Prostheses and Surgical Appliances
Initial Costs: Employers must pay the initial costs of supplying and fitting prostheses or surgical appliances required by an injured employee, subject to a maximum amount.
Repair and Renewal Costs: Employers are also responsible for the probable costs of repair and renewal of such items during a period of 10 years after the initial fitting, subject to a maximum amount.
Benefits of the ECO
Employee Protection
Financial Security: The ECO ensures that employees have financial security in the event of workplace injuries or occupational diseases. This includes coverage for medical expenses and compensation for lost earnings, providing a safety net for employees and their families.
No-Fault Compensation: One of the significant benefits of the ECO is that it provides compensation regardless of whether the employee was at fault or negligent. This ensures that employees are not penalized for accidents that may occur in the course of their work.
Employer Responsibilities
Notification Requirements: Employers are required to notify the Commissioner for Labour of any workplace accidents or prescribed occupational diseases within a specified period. This ensures that the necessary actions are taken promptly to address the situation.
Insurance Requirement: Employers must take out insurance to cover their liability under the ECO for injuries at work. This helps employers manage their financial risks and ensures that they can meet their obligations to injured employees.
Conclusion
The Employees’ Compensation Ordinance is a vital piece of legislation that protects the rights and well-being of employees in Hong Kong. It provides comprehensive coverage for workplace injuries and occupational diseases, ensuring that employees receive the necessary medical treatment and financial support. Employers are required to fulfill their obligations under the ordinance, including notifying the Commissioner for Labour and taking out insurance to cover their liability. By understanding the ECO, both employers and employees can ensure a safer and more secure work environment.
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