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Q:
Dear Sir/Madam, I would like to enquire about the Employee Compensation Ordinance insurance. If we have unpaid interns/trainees, do we need to purchase employee compensation insurance for them? Kind regards, Alfred
A:
If you are employing an individual
to do work for you, and you have a contractual agreement in place with the
individual for the work they will be performing, under Hong Kong Law you are
obligated to obtain an Employee’s Compensation Insurance Policy to cover the
worker against any accidents or injuries they may receive during the course of
their employment.
As per section 40 of the Hong
Kong Employee’s Compensation Ordinance, “no employer shall employ any employee
in any employment unless there is in force a policy of insurance to
cover their liabilities both under the Ordinance and at Common Law for injuries
at work in respect of all their employees, irrespective of the length of
employment contract or working hours, full time or part time employment.”
With the understanding that there
is a minimum wage requirement for all workers in Hong Kong, including monthly-rated,
weekly-rated, daily-rated, hourly-rated, piece-rated, permanent, casual,
full-time, part-time or other employees, and regardless of whether or not they
are employed under a continuous contract as defined under the Employment
Ordinance of the Hong Kong Labour Department, you should therefore hold an
Employee’s Compensation policy for any and all workers within your company.
Should you have any additional
questions with regards to the need for purchasing Employee’s Compensation
insurance for your staff interns and trainee employees please contact the Hong Kong Labour Department for further clarification. You can also receive
additional information about the available EC Insurance options in Hong Kong,
or receive a free quotation, by speaking to an expert CCW broker today.
Answered on: 4 May, 2017 15:10
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