EMPLOYEE COMPENSATION INSURANCE
What is Employee Compensation Insurance?
Any employee can be a victim of workplace accidents. These can range from physical accidents to illness or even death.
Employee compensation insurance covers the employer’s liability if an employee is injured, contracts a disease, or dies while working or on the way to work.
In most countries, this policy is mandatory when starting a company and hiring even one employee.
In addition, it is crucial to understand that it is not health insurance and will never cover injuries or illnesses unrelated to work.
Employee Compensation Insurance Tips
An employer who fails to comply with the Ordinance to secure the mandatory employee compensation insurance cover is liable to prosecution and, upon conviction, to a maximum fine of $100,000 and imprisonment for two years.
What Does Employee Compensation Insurance Cover?
Employee Compensation Insurance in Hong Kong covers:
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80% of wages and salaries for the period of sick leave related to the work accident
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Up to medical expenses HKD 300 per day / injured staff
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Compensation for permanent disability after assessment by the labour department
The coverage limit may differ depending on countries and specific policy