TNAG-2816-FCO40-4062-Future-of-Hong-Kong-International-Rights-and-Obligations-(IR-1993 — Page 46

Article 4

Agricultural

3

employees are

also covered by the Employees'

Compensation Ordinance.

Article 5

•

employee,

needs

his

In the case of an accident resulting in permanent incapacity or death, the compensation payable to the injured person or his dependants is paid in a lump cum rather than in the form of a pension. However, if the injured

permanent suffering from

total incapacity,

attention to constant

essential perform the

functions of

life, employer may be ordered by the Court to pay a lump sum calculated with regard to the probable duration and cost of

or attention,

to pay periodical payments over a period not exceeding two years, plus a lump sum if constant attention is still required after two years. The answer to Article 7 is also relevant in this respect. The Working Party on the Comprehensive Review of the Workmen's Compensation

Compensation Ordinance of 1978, whose membership included lawyers, doctors, social workers, academics, and government

from various

studied carefully departments, respective merits of lump sum payments and periodical payments and came to the conclusion that the practice of lump sum payments should continue for the following reasons':

"

officials

(a) the local

(b)

(c)

(c)

population's

the

than

population's preference for lump sum rather tha periodical payments;'

periodical payments are subject to the effects of inflation whereas a 1ump sum, if properly utilised or invested, provides protection against inflation and produces periodical yields;

periodical payments would involve disproportionately high administrative costs in cases of minor permanent disability;

and

there is already provision for payment by instalments in fatal cases through court orders.

It is consiuered that the above factors remain valid and the practice of 1 ump sum payments rather than payments in the form of a pension in cases of permanent incapacity or death should continue. Regarding the observation made by the Committee of Experts in 1986 on the application of Articles 5 and 7 of the Convention, the Labour Department of Hong Kong will keep under regular review the operation of the present practice of lump sum payments and report to the Committee of Experts on the subject when appropriate.