Employee's Compensation Insurance (ECI) is an insurance policy that covers an employer’s liability when a member of their staff suffers injury or illness while working. The policy can cover full and part-time staff, contractors, sub-contractors, or freelance staff in companies across every industry.
Is ECI mandatory in Hong Kong?
ECI is a legal requirement for all employers in Hong Kong, according to section 40 of the Employment Ordinance. The minimum insurance cover should be for an amount of:
- Not less than HK$100 million, up to 200 employees
- Not less than HK$200 million, over 200 employees
What is covered under Employee's Compensation Insurance (ECI)?
ECI coverage includes:
- Medical expenses related to workplace injuries or illnesses.
- Compensation for lost wages due to temporary or permanent disabilities resulting from work-related incidents.
- Rehabilitation costs to help employees recover and return to work.
Is there any penalty for companies that don’t comply with ECI?
An employer who fails to comply with the Ordinance to secure an ECI cover:
- Commits an offence and is liable on conviction to a maximum fine of HK$100,000 and imprisonment for two years.
- Is liable to pay a surcharge to the Employees Compensation Assistance Fund Board according to section 36A of the Employees Compensation Assistance Ordinance, Chapter 355 of the Laws of Hong Kong.
- Is still liable to pay the compensation under The Employees Compensation Ordinance and at common law, if his/her employee sustains an injury or dies from an accident arising out of and in the course of employment or suffers from a prescribed occupational disease.
Is there any other type of Insurance for Employees, in Hong Kong?
In addition to ECI, employers in Hong Kong often provide employees with other types of insurance to enhance their well-being and job satisfaction. Here are some typical types of insurance that employers may offer:
- Health Insurance: Health insurance covers medical expenses beyond workplace injuries, providing employees with access to healthcare services for various health concerns.
- Life Insurance: Life insurance provides financial protection to employees' families in the event of the employee's death, ensuring their loved ones are financially secure.
- Accident Insurance: Accident insurance covers employees against injuries resulting from accidents, whether they occur at the workplace or outside of working hours.
- Medical Insurance: Medical insurance offers comprehensive coverage for medical expenses, including routine check-ups, hospitalizations, and specialist consultations.
Conclusion
Offering comprehensive insurance coverage and benefits not only demonstrates an employer's commitment to employee well-being but also contributes to employee retention, job satisfaction, and overall morale. Providing a comprehensive benefits package can attract and retain talented employees while enhancing the company's reputation as a caring and responsible employer.
Contact us today to understand which are your available options.