Every employer in Hong Kong, whatever its size and whether employees are full-time or part-time, must hold employees' compensation insurance covering liability under the Employees' Compensation Ordinance and at common law for work injuries. The policy must be in force before any employee starts work.
Work accidents must be reported to the Labour Department within 14 days (7 days for a fatal accident), whether or not compensation is payable.
At a glance
- Minimum cover
- HK$100 million per event (up to 200 employees); HK$200 million for larger employers
- When
- In force from the first day of employment
- Accident reporting
- Within 14 days; 7 days if fatal
- No insurance
- Fine up to HK$100,000 and 2 years' imprisonment
Key obligations
| Obligation | Detail |
|---|---|
| Insurance | Policy in force from the first day of employment, covering all employees |
| Notice of insurance | Display the prescribed notice of insurance conspicuously at the workplace |
| Accident reporting | Report non-fatal accidents within 14 days; fatal accidents within 7 days |
| Compensation | Pay periodical payments and other compensation as required during sick leave |
| Records | Keep the policy and accident records |
Who is covered
- All employees under a contract of service or apprenticeship, including part-time and casual employees.
- Employees working outside Hong Kong for a Hong Kong employer, in certain circumstances.
- Directors who are employees.
- The label "freelancer" does not remove the obligation if the person is in fact an employee.
If an accident happens
- Make sure the employee receives medical treatment.
- Notify your insurer immediately.
- Report to the Labour Department on the prescribed form within the time limit.
- Keep records of sick leave and medical certificates.
- Pay compensation as required, on normal pay days.
Questions we are often asked
Do I need insurance if my only employee is a family member?
If the family member is employed under a contract of service, the obligation applies. Directors who are not employees are not covered by the requirement, but most businesses insure them as well.
Does the policy cover staff travelling overseas for work?
Cover for work outside Hong Kong depends on the policy and the circumstances of the employment. Check the territorial scope with your insurer before staff travel.
What happens if we under-declare payroll?
The insurer may dispute or reduce a claim, or seek additional premium. Declare accurate figures and update the insurer when headcount or payroll changes.
Self-check: where do you stand?
| Question | If the answer is no |
|---|---|
| Is your policy in force and does it cover every employee? | Arrange or extend cover now |
| Is the notice of insurance displayed? | Display it at every workplace |
| Do managers know how to report an accident? | Brief them and keep forms available |
| Do declared headcount and payroll match reality? | Update the insurer |
- Payroll data for accurate policy declarations.
- Records of sick leave and compensation payments.
- Coordinating with your insurance broker.
In summary
- Compulsory for every employer.
- Minimum HK$100 million per event (up to 200 employees).
- Report accidents within 14 days (7 if fatal).
Official references
- Employees' Compensation Ordinance (Cap. 282)
- Labour Department: A Concise Guide to the Employees' Compensation Ordinance, www.labour.gov.hk