In Hong Kong, employee compensation is strictly for injuries or illnesses that occur while performing job duties.
Only employees with a formal work contract, service agreement, or apprenticeship are covered.
Employers must report work-related injuries to the Labour Department (LD) within 14 days of the incident (7 days for fatal cases).
Injured employees must follow medical instructions, submit medical documents, and attend mandatory medical assessments if required by the employer or the Labour Department.
Accidents can happen in any workplace, and when they do, employers need to understand their responsibilities. In Hong Kong, employee compensation laws ensure that workers receive financial support if they are injured on the job. But what exactly does this mean for businesses?
In this article, we’ll break down the key aspects of Hong Kong’s employee compensation system, including who is eligible, how much must be paid, and what steps employers need to take when a workplace injury occurs.
What Is Employee Compensation?
Employee compensation is money given to workers who get hurt while doing their job. In Hong Kong, this type of payment is an important part of workplace safety and is controlled by a law called the Employees’ Compensation Ordinance (ECO), Cap 282.
Unlike in other countries, where "employee compensation" can mean salary, wages, or benefits, in Hong Kong, it only refers to financial compensation for work-related injuries or occupational illnesses.
This payment can help cover:
- Medical bills
- Therapy and recovery costs
- Lost wages from missing work
- Funeral costs in the case of a fatal accident
Next, we'll explain who qualifies for this type of compensation and what rules need to be followed.
Who Can Get Employee Compensation?
In Hong Kong, an employee must meet certain rules to receive compensation for a work injury. Here’s what’s required:
1. Being an Employee
To receive employee compensation in Hong Kong, a person must be an official employee with a work contract, a service agreement, or an apprenticeship.
However, some workers do not qualify for this type of payment, including:
- Temporary workers who are not part of the company’s main business
- People paid by a club to play sports or do other activities
- Part-time domestic helpers
- Remote workers (people who work from home)
- Family members of the employer
2. Work-Related Injury or Illness
The injury or illness must be directly caused by the employee’s job. This means it must happen while working and be clearly connected to their work duties.
3. Medical Proof
To receive compensation, the injured worker may need to visit a doctor to check how serious the injury is. They must also provide evidence, including:
- Medical reports
- Doctor’s notes
- Receipts for medical expenses
What Injuries Do Not Qualify?
Some injuries do not count for employee compensation, including:
- Minor injuries that do not stop the person from earning their full pay
- Self-inflicted injuries (injuries done on purpose)
- Injuries caused by reckless behavior, like using drugs or alcohol
- Injuries that the employee lied about when they were hired
To keep the system fair and prevent misuse, businesses should have clear rules and make sure employees understand them.
What Should Employees Do When a Workplace Accident Happens
Here are the important things employees should know:
Step 1: Notify Employer
Tell your employer about the work injury or illness as soon as possible, either by speaking to them or writing it down.
Step 2: Report Work Injury
The employer or main contractor must report to the Labour Department (LD) within:
- 14 days for non-fatal accidents
- 7 days for fatal accidents
If your employer fails to report the incident, you may contact the Labour Department directly for assistance or file a complaint.
Step 3: Medical Clearance
You must provide your employer with:
- Original sick leave certificates
- Medical receipts and reports
Be sure to keep copies for your records until the case is fully resolved.
In some cases, particularly serious injuries or disputes, the LD may refer you to the Occupational Medicine Unit (OMU) for medical assessment. You are required to attend these appointments.
Additionally, follow your doctor’s instructions carefully, rest as advised, and attend all scheduled medical check-ups to support your recovery and claim.
Step 4: Medical Assessment
Your employer may ask you to see a doctor, Chinese medicine practitioner, or dentist for a free medical exam within 7 days of reporting the injury. If you are receiving compensation payments, your employer may also ask you to attend regular check-ups.
If you refuse these exams without a good reason, you could lose your compensation.
Step 5: Case Settled
Once your medical condition has been evaluated, the Labour Department will issue a Certificate of Compensation Assessment, which outlines the compensation amount due.
Your employer or the principal contractor must pay the compensation within 21 days of the certificate’s issue date to settle the case.
What Should Employers Do When a Workplace Accident Happens
If an employee gets hurt while working, the employer must take quick and responsible actions to ensure the worker's safety and handle the situation properly. Here are the steps employers in Hong Kong should follow:
Step 1: Make Sure the Employee Gets Medical Help
As soon as an employee is injured, they should report the accident by filling out a Notification of Accident form. Even if the injury seems small, they must get medical care right away. The employer should make sure the worker receives proper treatment.
Step 2: Report the Accident to the Labour Department
The employer must inform the Hong Kong Labour Department about the accident within:
- 14 days if the accident caused an injury
- 7 days if the accident resulted in death
The employer must submit the correct form:
- Form 2 – For accidents causing death or serious injury (more than 3 days off work)
- Form 2B – For accidents that cause temporary incapacity
- Form 2A – For cases involving work-related illnesses
Even if no compensation is needed, the employer still has to report the incident.
Step 3: Check Medical Records and Pay Compensation
After the injured worker provides medical documents, the employer must verify the details and make payments based on the situation.
If the injury is minor (less than 3 days off, no permanent disability)
- Pay for medical costs (up to HK$300 for hospital treatment)
- Pay 80% of the employee’s lost wages during sick leave
If the injury requires 3 to 7 days off work (no permanent damage)
- The employer and employee can discuss the compensation amount
- Payment must be made on or before the next payday
- The employer must reimburse the employee’s medical expenses
What Happens If the Injury Causes Permanent Disability?
If an employee is permanently unable to work due to the injury, the compensation amount depends on their age:
| Age at Time of Injury | Compensation Amount |
|---|---|
| Under 40 years old | 96 months of monthly earnings or the minimum compensation (whichever is higher) |
| 40 to 55 years old | 72 months of monthly earnings or the minimum compensation |
| 56 years and above | 48 months of monthly earnings or the minimum compensation |
The minimum compensation for total permanent disability is:
- HK$552,190 (for injuries on or after April 13, 2023)
- HK$537,780 (for injuries between April 15, 2021, and April 12, 2023)
If the worker is partially disabled, they will receive a percentage of this amount based on how much their ability to work has been reduced.
Serious Injuries and Labour Department Review
If the injury is severe, the Labour Department will send the worker for a special medical check-up. If the doctor finds that the worker has permanent damage, the LD will issue a Certificate of Compensation Assessment (Form 5), which outlines the final compensation amount.
Employers must then:
- Pay the worker their compensation amount
- Reimburse medical costs
- Make all payments within 21 days of receiving Form 5
What Happens If the Employee Passes Away?
If the worker dies due to a workplace accident, the family will receive compensation based on the worker’s age:
| Age at Time of Death | Compensation Amount |
|---|---|
| Under 40 years old | 84 months of monthly earnings or the minimum compensation, whichever is higher |
| 40 to 55 years old | 60 months of monthly earnings or the minimum compensation |
| 56 years and above | 36 months of monthly earnings or the minimum compensation |
The minimum compensation for a worker’s death is:
- HK$486,300 (for deaths on or after April 13, 2023)
- HK$473,610 (for deaths between April 15, 2021, and April 12, 2023)
The employer must also reimburse funeral and medical costs, up to HK$94,690.
What If There Is a Dispute About the Injury?
If there is disagreement about the injury or compensation amount:
- The employer can ask the Employees’ Compensation Division (ECD) for advice
- If no agreement is reached, the case goes to court
If the dispute leads to contract termination, the employer should carefully consider the legal consequences before making a final decision.
Conclusion
Employee compensation in Hong Kong ensures injured workers are supported and employers meet their legal duties. Knowing the rules helps prevent delays and disputes.
Timely reporting, proper documentation, and cooperation keep the process smooth and the workplace safe.
