XN000022-1993-05-26 — Page 24

WEDNESDAY, MAY 26, 1993

10

MORE COMPENSATION FOR INJURED EMPLOYEES PROPOSED

THE GOVERNMENT PROPOSES TO AMEND THE EMPLOYEES COMPENSATION ORDINANCE BY REMOVING THE STATUTORY MAXIMUM AMOUNT OF COMPENSATION FOR DEATH OR PERMANENT INCAPACITY AND INTRODUCE INSTEAD A MONTHLY EARNINGS CEILING FOR CALCULATING SUCH COMPENSATION.

INITIALLY, THE CEILING IS PROPOSED TO BE SET AT $15,000 WHICH IS IN LINE WITH THAT USED FOR CALCULATING SEVERANCE PAYMENT AND SERVICE PAYMENT UNDER THE EMPLOYMENT ORDINANCE.

LONG

WOULD FOR

"UNDER THIS PROPOSAL, THE MAXIMUM LEVEL OF COMPENSATION BE $1.44 MILLION FOR PERMANENT TOTAL INCAPACITY AND $1.26 MILLION DEATH, THE SECRETARY FOR EDUCATION AND MANPOWER, MR JOHN CHAN, SAID WHEN MOVING THE SECOND READING OF THE EMPLOYEES' COMPENSATION (AMENDMENT) BILL 1993 IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR CHAN POINTED OUT THAT AT PRESENT, COMPENSATION FOR DEATH OR PERMANENT INCAPACITY WAS CALCULATED BY REFERENCE ΤΟ THE AGE AND MONTHLY EARNINGS OF THE EMPLOYEE CONCERNED.

THE AMOUNT OF COMPENSATION PAYABLE IS SUBJECT TO A STATUTORY MAXIMUM, WHICH IS $620,000 IN THE CASE OF PERMANENT TOTAL INCAPACITY AND $542,000 IN THE CASE OF DEATH.

BY

"A RECENT ANALYSIS REVEALED THAT, IN 46.7 PER CENT OF PERMANENT INCAPACITY CASES, THE COMPENSATION ENTITLEMENT HAD BEEN SUPPRESSED THE OPERATION OF THE STATUTORY MAXIMUM, HE SAID.

"

"THIS WAS PARTICULARLY

SERIOUS FOR THE

YOUNGER EMPLOYEES

BECAUSE OF THE AGE FACTOR.

MR CHAN TOLD THE COUNCIL THAT THE GOVERNMENT INTENDED TO BRING THE PROPOSAL INTO EFFECT ON JANUARY 1 NEXT YEAR.

IT WOULD ENABLE THE GREAT MAJORITY OF INJURED EMPLOYEES TO RECEIVE THEIR FULL ENTITLEMENT AS ONLY 6.6 PER CENT OF THE EMPLOYEES ENTITLED TO COMPENSATION IN 1992 EARNED MORE THAN $15,000 A MONTH, ADDED.

HE

THE

THE BILL ALSO AIMS TO UPDATE THE FIRST SCHEDULE OP PRINCIPAL ORDINANCE RELATING TO THE ASSESSMENT OF PERMANENT INCAPACITY WHICH WAS LAST REVISED IN 1985.

THE PROPOSED IMPROVEMENTS INCLUDE INCREASING THE PERCENTAGES OF LOSS OF BARNING CAPACITY SPECIFIED FOR SOME INJURIES; EXPANDING THE COVERAGE TO INCLUDE MORE INJURIES; AND PROVIDING A HIGHER PERCENTAGE OF LOSS OF EARNING CAPACITY FOR INJURY TO THE PREFERRED HAND AND FOR INJURIES INVOLVING THE LOSS OF TWO OR MORE FINGERS.

AMENDMENTS

*

ARE ALSO PROPOSED:

WITHOUT

FIRST

TO MAKE THE LAW CLEAR THAT AN INJURED EMPLOYEE COULD TAKE PROCEEDINGS AGAINST HIS EMPLOYER'S INSURER SUING HIS EMPLOYER;

/* TO EMPOWER