XN000022-1982-10-13 — Page 3

WEDNESDAY, OCTOBER 13, 1982

BETTER PROTECTION FOR INJURED EMPLOYEES PROPOSED

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AN AMENDMENT BILL, WHICH SEEKS TO PROVIDE COMPULSORY INSURANCE AND OTHER BENEFITS FOR EMPLOYEES INJURED AT WORK, WAS INTRODUCED IN THE LEGISLATIVE COUNCIL THIS (WEDNESDAY) AFTERNOON BY THE COMMISSIONER FOR LABOUR, THE HON J.N. HENDERSON.

MOVING THE SECOND READING OF THE EMPLOYEES' COMPENSATION AMENDMENT) BILL 1982, MR HENDERSON SAID THAT THE MULTIFARIOUS AMENDMENTS INTRODUCED BY THE BILL WOULD PROVIDE MUCH BETTER PROTECTION TO INJURED EMPLOYEES,

THE BILL'S MAIN OBJECTS WERE TO PROVIDE IMPROVED PROTECTION FOR EMPLOYEES; IMPROVE PROCEDURES FOR THE RECOVERY OF COMPENSATION INTRODUCE PROVISIONS TO ENSURE THAT AN EMPLOYER FULFILS HIS OBLIGATIONS; INTRODUCE REVISED PROVISIONS FOR COMPULSORY INSURANCE OF EMPLOYEES; AND CLARIFY VARIOUS UNCERTAINTIES OR AMBIGUITIES IN THE ORDINANCE.

REFERRING TO COMPULSORY INSURANCE, MR HENDERSON POINTED OUT THAT IT WOULD ELIMINATE HARDSHIPS EXPERIENCED BY CERTAIN INJURED EMPLOYEES WHO COULD NOT GET COMPENSATION DUE TO THE EMPLOYERS' INABILITY OR UNWILLINGNESS TO PAY.

IT WOULD ALSO DISSUADE EMPLOYERS FROM EXPLOITING THE IGNORANCE OF INJURED EMPLOYEES BY ENTERING INTO PRIVATE AGREEMENTS WITH THEM ON TERMS TO THEIR DISADVANTAGE.

HE SAID THAT WITH THE SUBSTANTIAL INCREASE IN COMPENSATION LEVELS IN 1980, THE NEED FOR COMPULSORY INSURANCE WAS MORE EVIDENT, PARTICULARLY WITH THE MULTIPLICITY OF EMPLOYERS WITH VERY SMALL NUMBER OF WORKERS.

MR HENDERSON SAID THAT EVERY EMPLOYER WAS REQUIRED TO TAKE OUT AN INSURANCE POLICY TO COVER HIS FULL AMOUNT OF LIABILITY UNDER THE ORDINANCE AND INDEPENDENTLY OF THE ORDINANCE.

IN PLACE OF AN INSURANCE POLICY, AN EMPLOYER MAY OBTAIN A WRITTEN GUARANTEE FROM A LICENSED BANK TO COVER THE FULL AMOUNT OF LIABILITY HE IS REQUIRED TO BE INSURED.

HOWEVER, HE SAID THAT THE HONG KONG ASSOCIATION OF BANKS HAD MADE SOMÉ COMMENTS ON THIS PROPOSAL WHICH COULD POSSIBLY RESULT IN AN AMENDMENT AT THE COMMITTEE STAGE.

MR HENDERSON THEN WENT ON TO OUTLINE OTHER MAJOR AMENDMENTS INTRODUCED BY THE BILL.

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