Employees’ Compensation

Claim case sharing

Late payment of employees' compensation

Mr. Fung was a worker in a courier service company. He was injured at work on 1 May 2016 and was granted sick leave from 1 May 2016 to 30 December 2016. Form 7 and Form 5 were issued on 1 May 2017 and 14 May 2017 respectively. The employer made periodical payments to Mr. Fung during his sick leave period but refused to pay the compensation of HK$40,000 for permanent incapacity within 21 days of the issue of Form 5, giving as the reason another monetary dispute between themselves.

Warning letters were issued to the employer and copies sent to the insurance company for follow-up action. Mr. Fung then filed his employees' compensation claim in court and lodged a complaint against the employer for non-payment of compensation at the Labour Department. Although the payment was finally settled in court by the insurance company in early 2018, the employer was prosecuted for late-payment of compensation under Chapter 282 section 16A(9)(b) of the Employees' Compensation Ordinance (ECO) and for non-payment of the surcharge under sections 16A(10)(a) and 16A(10)(b).

It is the employers' duty to observe the timelines and requirements of the ECO and to settle an employees' compensation to avoid prosecution. If employers have any enquiries about a claim, they can consult their insurance company.

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