Employee Compensation Claim Process In Hong Kong
- Adit Bhatnagar
- Aug 23, 2024
- 4 min read
Work injuries often lead to medical expenses, lost wages, and sometimes long-term disability. In Hong Kong, the law requires employers to cover these costs. If an employer is found to have neglected safety protocols or failed to notify of injuries, they could face legal action.
Therefore, employers must ensure the work environment is safe, provide suitable gear, and understand how to handle work injuries. Employers and the company should also know the employee compensation claim process to protect employees and the business’s liability.
This article outlines the employee compensation claim process that employers must follow for work-related injuries or occupational diseases.
Employee Compensation Claim Process
Urgent Medical Attention
Employees should be trained to inform employers or managers about injuries as soon as they occur. When an injury occurs, employers must quickly send the employee to a hospital or clinic to ensure the injury does not worsen and is professionally treated.
Employers should immediately send the employee to the government hospital, clinic, or appointed doctor for medical treatment. Government hospital charges are similar to the compensation the employer is liable for under the Employees’ Compensation Ordinance.
Employers must cover urgent medical expenses for surgery or treatment. The business should be prepared to initiate the employee compensation claim process and ensure an understanding of each step.
Understand Medical Advice
After the employee has received the necessary treatment to recover from the work injury or occupational disease, the employer can proceed to the next step.
The hospital or clinic must create a detailed report for the employer. The report is a vital step in the employee compensation process, helping the business understand the seriousness of the work injury and how to address it.
The report commonly details the injury, treatment, how long the employee needs to recover and any possibility of disability. The medical expert typically provides this information as soon as possible to help employers begin the compensation process.
Inform the Labour Department
One of the most critical steps in the employee compensation claim process is informing the labour department. The labour department must be informed of every work injury or occupational disease, regardless of its severity.
A business that fails to inform the Hong Kong labour department will be fined and may even face jail time. The employer must notify the department within 14 days of an accident that results in injury or occupational disease, and within 7 days if the accident results in death.
Employers are required to inform the labour department using the correct forms. The forms differ depending on whether the employee suffers an injury or disease and the recovery duration.
Employers must use Form 2B if an employee experiences a work-related injury that requires recovery time of 3 days or less. If the injury results in a recovery period of more than three days or the unfortunate event of death, employers must use Form 2. Any occupational disease cases require Form 2A.
Companies can find all forms on the Hong Kong Labour Department website.
Notify Insurance Company
Employers need to notify their insurance company right after informing the Labour Department. Notifying the insurance company initiates the employee compensation insurance process and will continue until the employee fully recovers.
Employee compensation insurance (EC insurance) covers costs associated with work injuries or occupational diseases. EC insurance is a mandatory policy in Hong Kong; all employers must have it.
Upon notification, the insurance provider will assess the situation and inform the company which documents will be required to submit the claim.
A successful insurance reimbursement will cover medical bills, hospital costs, salary, and compensation. This step is crucial to protecting the employer’s liability and allowing the company to provide the best compensation without financial stress.
Medical Clearance Assessment
After the final medical examination, the labour department will require the employee to attend a medical clearance interview. The interview is held at a specific location, such as the occupational medicine unit (OMU) and conducted by a doctor working with the labour department.
The interview and examination results will be used to issue a certificate of compensation stating the amount payable under the employee’s compensation ordinance.
The employer must pay the employee the compensation or any outstanding amount stated in the certificate within 21 days of the issue date. The employer is also responsible for paying the associated medical expenses.
Employers must send the certificate and all paid receipts to the insurance company for the most accurate reimbursement.
Collect Claim
Finally, the company will receive a cheque matching or as close as possible to the costs paid to treat the work injury.
The insurance will only reimburse the claim after the employee has returned to work, all examinations have been completed, and compensation has been paid. The insurance company will analyse all the documents and forms submitted to calculate the most accurate payout.
The costs will help the company recover without incurring a financial loss while providing the best possible employee care. In addition, it is crucial to file all documents, even after the claims are settled, in case the labour department or insurance provider requests proof of the original documents.
Importance Of Having High-Quality Employee Compensation Insurance
Insurance is crucial to the employee compensation claim process, but is basic EC insurance enough?
Employee compensation insurance is mandatory for every employer, but various insurance providers have different coverage levels. High-level EC insurance offers higher coverage, a smoother payout process, and improved insurance service. A higher level of insurance can make a big difference. Especially for a company with a high chance of work injuries.
Employers can’t control every employee or predict injuries. So insurance is one of the only ways to deal with the outcome and provide employees with what they deserve.
High-quality insurance can make the employee compensation claim process easier and save an employer a significant financial loss.
To Learn More about employee compensation insurance and get the best coverage for your employees in Hong Kong and Asia, contact Red Asia Insurance.
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