Employee Compensation Insurance or EC Insurance is a liability cover specific for businesses with hired workers. This is mandatory in Hong Kong for all businesses.
According to Section 40 of the Employees’ Compensation Ordinance, Chapter 282 of the Laws of Hong Kong, no employer shall employ any employee in any employment unless there is in force a policy of insurance to cover their liabilities both under the Ordinance and at common law for injuries at work in respect of all their employees, irrespective of the length of employment contract or working hours, full-time or part-time, permanent job or temporary employment.
This ordinance also applies to domestic helper insurance but will vary in cost and coverage.
An employer who fails to comply with the Ordinance to secure an insurance cover commits an offence and is liable on conviction to amaximum fine of HK$100,000 and imprisonment for two years.
MUST-KNOW FOR EMPLOYERS
- Minimum insurance cover
- Full cost of insurance CANNOT be deducted from your employees’ earnings. A breach in this ordinance makes the employer liable to a fine of $10,000 and 6 months imprisonment.
- When you add more employees to your business, make sure you contact your insurance provider to discuss any adjustments.
- Ask if the Employee Compensation Insurance covers subcontractors. You are not required to take out a policy for them as there is another type of insurance they can arrange for themselves. You can read our blog about being an expat contractor in Hong Kong here.
- Take note of sick leaves and medical expenses in case an employee is injured during work.
Some information for Employers and Employees
Employee Compensation Insurance covers the following:
- medical care from injury or illness
- replacement income (start date may vary)
- costs for retraining
- compensation for any permanent injuries
- benefits to survivors of workers who are killed on the job
- policy does not cover pain and suffering
- some policies can cover long term and permanent injuries
- volunteers workers may also be covered by some policies
Once an employee makes a claim, they forfeit any chances of pursuing a legal complaint against the company.
FOR A QUOTE OR MORE ANY QUESTIONS ABOUT THIS INSURANCE, FILL UP THE FORM HERE: Employee Compensation Insurance Quote