Employees Compensation Essay

In Hong Kong, Employees’ Compensation Ordinance, chapter 282 governs employer responsibility for workplace injuries to employees. All of the employers must need to buy employees' compensation insurance policies (commonly known as "labor insurance policies") for employees. If companies were found that there do not have any insurance cover to employees, fined and may send to prison are applied. Employers can buy the employees’ compensation (EC) insurance from insurance companies, the premium is determined by the free market. Insurers will look at your company’s industry, the number of workers and other factors to decide the premium. Other than that, insurance companies are profit-maximizing companies, it is no doubt that they need to make profit from the amount of premium.

In 2003, some of the small and medium enterprises (SMEs) cannot buy the EC insurance from insurers as the premium was increased in a large extent and refusal of underwriting EC insurance for some sectors. It was a serious problem to them as they cannot run the business without EC insurance to their workers. Otherwise, they were breached the laws. The reasons behind these two factors were due to the following factors.

First, the main reason that leading to

HKCTU were strongly against about using this scheme to replace the “central employees' compensation system” as several types of employees cannot be improved and protected through this scheme. It included employees who are work for high-risk industries, self-employment/false self-employment, casual workers and construction workers. HKCTU re-stated that government should set up the central employees' compensation system, through a non-profit making labor insurance organization to eliminate the problem of high premium rate in private market and cover all the employees and