Employees' Compensation

In Hong Kong, the employees' compensation system adopts the no-fault principle whereby compensation is payable irrespective of whether the injury, the occupational disease or death was caused by the employee's fault. The Employees' Compensation Ordinance covers injuries or death caused by accidents arising out of and in the course of employment or by specified occupational diseases. An employer must be in possession of a valid insurance policy to cover his liabilities under the ordinance and at common law.

The Employees' Compensation Division of the Labour Department, which administers the Employees' Compensation Ordinance, assists injured employees and family members of deceased employees to obtain compensation from their employers. It also administers a scheme to provide interest-free loans to those who need financial assistance as a result of a work-related accident.

Payment of compensation under the Pneumoconiosis (Compensation) Ordinance is administered by the Pneumoconiosis Compensation Fund Board. Pneumoconiosis sufferers who were diagnosed before 1981 are not covered by the ordinance. They receive ex gratia benefits from the Government under the Pneumoconiosis Ex Gratia Scheme.

The Occupational Deafness Compensation Scheme compensates employees suffering from noise-induced deafness arising from the specified noisy occupations. It is administered by the Occupational Deafness Compensation Board. A review of the scheme was initiated in late 2000 and completed in July 2001.

The Employees Compensation Assistance Scheme provides a safety net for injured employees or family members of deceased employees so that they can receive compensation from the scheme in cases where employers default payment of compensation for work-related injuries or insurers become insolvent. The scheme is financed by a levy imposed on all employees' compensation insurance policies taken out by employers.