What is employees' compensation insurance in Hong Kong

Employees' Compensation Insurance Explained

What Is Employees' Compensation Insurance?

Employees' compensation insurance is compulsory. Under the Employees' Compensation Ordinance (Cap. 282), every employer in Hong Kong must take out a policy. It covers an employer's liability for workplace injury, disease, or death suffered by an employee arising out of or in the course of employment. The requirement applies regardless of the number of employees or the length of the contract of employment.

EC Insurance Hong Kong: A Legal Requirement

The obligation to obtain employees' compensation insurance in Hong Kong is absolute. There is no minimum employee threshold, no probationary period exemption, and no exemption for part-time or casual staff. Every person who employs another under a contract of employment must hold a valid policy.

Compulsory Employer Insurance HK: What the Law Says

The Employees' Compensation Ordinance (Cap. 282) requires the employer to take out and maintain insurance. A failure to do so is an offence. The Labour Department enforces this requirement and may issue a notice requiring an employer to produce evidence of cover. The penalty for non-compliance includes a fine and imprisonment.

Cap. 282 Explained: Key Provisions

Cap. 282 sets out the scope of employer liability for workplace injury and the compulsory insurance obligation. The employer's obligation is to insure against liability for any injury to an employee arising out of and in the course of employment. The policy must cover the full amount of the employer's liability under the Ordinance.

Workplace Injury Insurance: What It Covers

Employees' compensation insurance provides employee coverage for work-related accidents and occupational diseases. The policy responds when an injury or disease is caused by the work the employee does, whether at the workplace itself or elsewhere in the course of employment. Compensation amounts are set by the Ordinance.

Employer's Obligation Under the Ordinance

The employer's obligation is straightforward. No employee may work without the employer holding a compliant insurance policy. The policy must be issued by an insurer authorised to carry on employees' compensation business in Hong Kong. Employers must display a notice of insurance at the workplace.

No Exemption for Any Employer

No exemption is available for the insurance requirement. All employers, whether the business is large or small, with a single employee or many, must hold cover from the first day of employment. A company that fails to insure its employees commits an offence under Cap. 282.