THE UNIVERSITY OF HONG KONG LIBRARIES

Hong Kong Collection

This pamphlet explains the procedures on employees' compensation claims for work injuries, as from January 1997. For more detailed information about the provisions of the Employees' Compensation Ordinance, please refer to "A Concise Guide to the Employees' Compensation Ordinance" which is available at the offices of the Employees' Compensation Division of the Labour Department. The Ordinance itself remains the sole authority for the provisions of the law explained. For procedures on employees' compensation claims for fatal work accidents, please refer to a separate pamphlet on "How To Apply for Employees' Compensation for Death". j . r~" :V"T^ g'"

The Employees' Compensation Ordinance provides that an employer is liable to pay compensation to his employee if the latter has sustained injury by accident arising out of and in the course of employment. The Ordinance also applies to incapacity which results from prescribed occupational diseases. The Ordinance covers all persons employed under a contract of service or apprenticeship, including domestic helpers, agricultural employees and employees injured while working outside Hong Kong if they are employed in Hong Kong by local employers.

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If the accident happens on or after 1 January 1997 and incapacitates the employee for not more than 3 days, the employer should make periodical payments on the employee's normal pay days. The employer should also pay the medical expenses concerned. For injuries involving only temporary incapacity for a period exceeding 3 days but not exceeding 7 days, the employer may directly agree with the employee as to the compensation payable and make such payment accordingly. The employer should also pay the medical expenses concerned. by If the accident happened before 1 July 1996 and involved permanent loss of earning capacity exceeding 5%, the employer should enter into an agreement with the employee under the law. The agreement should be made within 21 days after the Certificate of Assessment (Form 7, 8, 9 or 10) is issued by the Employees' Compensation Assessment Board. The employer is also required to submit the agreement in triplicate to the Commissioner for Labour for approval within 3 days after it is signed and executed. The employer should pay the employee the amount of compensation, or any outstanding amount, stated in the agreement within 21 days from the date of approval of the agreement. The employer should also pay the medical expenses concerned. by For other cases, the Employees' Compensation Division will issue a Certificate of Compensation Assessment (Form 5) to the employer and the employee stating the amount of compensation payable. If the injury results in temporary incapacity only, the certificate will be issued after medical clearance.

If the injury is likely to result in permanent loss of earning capacity, the certificate will be issued after the Certificate of Assessment (Form 7,8,9 or 10) is issued. Either the employer or the injured employee may raise objection in writing to the Commissioner for Labour within 14 days after the issue of the certificate, with a copy of the objection notice sent to the other party. On receipt of the objection notice, the Employees' Compensation Division will review its assessment and issue a Certificate of Review of Compensation Assessment (Form 6) to both parties. The employer should pay the employee, within 21 days from the date of issue of the certificate, the amount of compensation, or any outstanding amount, stated in the certificate. The employer should also pay the medical expenses concerned.

by Any compensation claim which cannot be settled in the above ways would have to be determined by the District Court.

Section 14(1) of the Employees' Compensation Ordinance stipulates that an application to Court for employees' compensation has to be made within 24 months from the date of the accident causing the injury. Therefore, if a case cannot be settled by the end of the 18th month from the date of accident, the employee concerned should contact the Employees' Compensation Division of the Labour Department. Staff of the Division would either refer the employee to the Legal Aid Department for further assistance, or assist him to register his claim at the District Court (whichever the employee wishes). In some cases where the accident victim is able to show that another party was wholly or partly responsible for the accident causing the injury, a further claim may be made for common law damages. The Legal Aid Department is able to give advice and assistance concerning such common law claims as well as claims under the Employees' Compensation Ordinance.

• To take out an insurance policy to cover your liabilities under the Employees' Compensation Ordinance and common law. • To report the work accident by submitting Notice of Accident in duplicate to the Labour Department within 14 days of the accident. For work accidents on or after 1 January 1997 and incapacitates the employee for not more than 3 days, the notice should be submitted in Form 2B; for cases which involve specified occupational diseases, the notice should be submitted in Form 2A; for all other work accidents, the notice should be submitted in Form 2. Late submission or provision of incorrect information is an offence. • To make periodical payments to the injured employee for the period of temporary incapacity on his normal pay days, and to pay the medical expenses concerned. • To pay compensation for permanent incapacity and other items of compensation, if any, when the compensation amount is determined. Please see the section on Amount of Compensation below.

• To notify the employer or supervisor of the accident immediately. • To seek medical examination or treatment by the registered doctor designated by the employer, or by a registered doctor at a hospital or clinic. • To take rest and attend further consultation as directed by the doctor. • To submit the sick leave certificates to the employer as soon as possible and keep a photocopy.

To receive periodical payments from the employer on your normal pay days during your sick leave; and to receive reimbursement for the medical expenses incurred up to a daily maximum, if the employer does not provide free medical treatment. Please see the section on Amount of Compensation below.

Medical Clearance Medical clearance is required if your injury case involves over 7 days' sick leave or has not been settled by direct settlement. Medical clearance is conducted by the Occupational Medicine Unit of the Labour Department to determine whether you should be referred to the Employees' Compensation Assessment Board for assessing the permanent incapacity. Once the Notice of Accident concerned is received, the Employees' Compensation Division will send you by post a Medical Clearance Form and related information. You should approach the Occupational Medicine Unit as designated in the form when your sick leave has expired for 1 month (in case of prolonged sick leave, 1 month after the accident). If dental injury is involved, you should approach the Occupational Medicine Unit immediately to seek advice on procedures for dental treatment.

• The Employees' Compensation Assessment Board is established to assess the extent of permanent incapacity caused by the injury, as well as the period of absence from duty necessary. Where necessary, the Ordinary Assessment Board may refer a case to the Special Assessment Board for assessment. After the assessment, the Assessment Board will issue a Certificate of Assessment (Form 7 or 8) to the employee and his employer. Either party may object to the assessment result in writing within 14 days after the issue of the certificate, with a copy of the objection notice sent to the other party. On receipt of the objection notice, the Assessment Board will review its assessment and issue a Certificate of Review of Assessment (Form 9 or 10) to both parties. An employer should grant leave to an injured employee for the purpose of attending assessment. If the employee still works with the same employer as when he was injured, the leave should be paid.

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Periodical Payments(I) (for sick leave resulting from the work accident)

Average daily earnings x days of sick leave x 4/5* *(the factor is 2/3 instead of 4/5 if the accident happened before 1 January 1997)

Medical Expenses

Actual amount of expense paid, subject to a daily maximum of $160

Compensation for Permanent Incapacity(1)

(a) Employee aged under 40 96 months' earnings(2) or a minimum compensation(3) (whichever is higher) x percentage of loss of earning capacity

(for permanent total/partial incapacity resulting from the work accident and payable in addition to the periodical payments)

(b) Employee aged 40 to under 56 72 months' earnings(2) or a minimum compensation(3) (whichever is higher) x percentage of loss of earning capacity

(c) Employee aged 56 or above 48 months' earnings(2) or a minimum compensation(3) (whichever is higher) x percentage of loss of earning capacity

(!)• Adjustment of Earnings (for accidents which happened on or after 1.2.1995) If an employee has been granted any sick leave 12 (or 24) months after the date of accident, his earnings should be adjusted for the purpose of calculating: • periodical payments for the sick leave beyond the 12th/24th month period; and • compensation for permanent incapacity. The adjustment should be made in accordance with the average rate of increase of the earnings in respect of other persons of similar earning capacity employed by the employer in similar employment. Where there is no such other persons, the rate of increase in the Consumer Price Index (A) at the end of the 12-(24-)month period after the date of accident should be used. (2). In calculating the amount of compensation for permanent total incapacity, the monthly earnings of the employee are subject to a maximum of: (a) for accidents which happened in the period from 1.1.1994 to 31.12.1995: $15,000 (b) for accidents which happened on or after 1.1.1996: $18,000. (3)

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In calculating the amount of compensation for permanent total incapacity, the minimum amount of compensation should be: (a) for accidents which happened in the period from 1.1.1994 to 31.12.1995: $248,000 • - -••'•••' ' '-'