ENG-2007 — Page 187

Employment 139

Stepping Up Enforcement Against Wage Offences

The Labour Department continued to step up enforcement action against employers who fail to pay wages due to their employees. The department secured convictions for 960 summonses relating to wage offences in 2007, an all-time high, or 22 per cent up on 785 convictions in 2006. Five company directors and two employers were jailed or given suspended jail sentences for wage defaults. In addition, two company directors were imposed community service orders.

Employees' Compensation

Hong Kong's employees' compensation system adopts the 'no-fault' principle whereby compensation is payable irrespective of whether the injury, occupational disease or death is the employee's fault. The Employees' Compensation Ordinance (ECO) covers injuries or death caused by accidents arising from, and in the course of, employment or by specified occupational diseases. An employer must be in possession of a valid insurance policy to cover his liabilities both under the ordinance and common law. The Labour Department launched the Voluntary Rehabilitation Programme on a trial basis for the construction industry in 2003. The programme was first drawn up to help construction workers injured at work to recover faster through better care. It has since been extended to all industries in phases.

The Employees' Compensation Division of the Labour Department, which administers the ECO, assists injured employees and the families of deceased employees to obtain compensation from their employers. It also administers a scheme that provides interest-free loans to workers injured in job-related accidents. In 2007, loans totalling $105,000 were made to seven injured employees and to the dependents of deceased employees.

The Employees Compensation Assistance Scheme helps the injured employees, or family members of the deceased employees to obtain compensation from defaulting employers. The scheme is financed by a levy imposed on all employees' compensation insurance policies taken out by employers.

In 2007, the Labour Department held seminars, distributed leaflets and made announcements on TV and radio to help employers and employees better understand their rights and obligations under the ECO.

Pneumoconiosis sufferers are eligible for compensation under the Pneumoconiosis (Compensation) Ordinance administered by the Pneumoconiosis Compensation Fund Board. Those diagnosed before the ordinance went into force in 1981 may receive ex gratia benefits from the Government under the Pneumoconiosis Ex Gratia Scheme. By the end of the year, 2 081 pneumoconiosis sufferers were receiving payments under the ordinance or the ex gratia scheme. Family members of 82 pneumoconiosis sufferers who died as a result of the disease were also granted compensation.

The Occupational Deafness Compensation Board administers the Occupational Deafness Compensation Scheme which compensates employees with noise-induced deafness for having worked in specified noisy industries. In 2007, the board approved