ENG-2014 — Page 153

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Employment

secured 89 convictions for failures to pay awards made by the Labour Tribunal or Minor Employment Claims Adjudication Board. Two employers and two company directors were sentenced to imprisonment. Another company director was ordered to perform community service.

Protection of Wages on Insolvency Fund

The Protection of Wages on Insolvency Fund, financed by a levy on business registration certificates, provides timely relief to employees affected by insolvent employers in the form of ex gratia payments to cover outstanding wages, wages in lieu of notice, severance payment and pay for untaken annual leave and/or untaken statutory holidays.

In 2014, the fund received 2,236 applications for ex gratia payment, paid out $58.8 million to 2,186 applicants, and recorded a surplus of $339 million.

Employees' Compensation

Hong Kong's employees' compensation regime follows the 'no-fault' principle, whereby compensation is payable regardless of whether the injury, occupational disease or death is due to the employee's fault. The Employees' Compensation Ordinance covers injuries or death caused by accidents arising from, and in the course of employment or by specified occupational diseases. An employer must have a valid insurance policy to cover his liabilities. both under the ordinance and the common law.

The Labour Department assists injured employees and the families of deceased employees to get compensation from their employers under the Employees' Compensation Ordinance. It also provides interest-free loans to workers injured in job-related accidents. During the year, the Labour Department delivered talks, distributed leaflets, and made announcements on TV and radio to help employers and employees better understand their rights and obligations under the ordinance. An Employees Compensation Assistance Scheme helps injured employees, or family members of deceased employees obtain compensation from defaulting employers. The scheme is financed by a levy imposed on all employees' compensation insurance policies taken out by employers.

Pneumoconiosis and/or mesothelioma sufferers are eligible for compensation under the Pneumoconiosis and Mesothelioma (Compensation) Ordinance administered by the Pneumoconiosis Compensation Fund Board. Those diagnosed to have contracted pneumoconiosis before the ordinance became effective in 1981 may apply for ex gratia payments from the government under the Pneumoconiosis Ex Gratia Scheme. As at 31 December 2014, 1,716 pneumoconiosis and/or mesothelioma sufferers were receiving payments under either the ordinance or the ex gratia scheme. Family members of 92 pneumoconiosis and/or mesothelioma sufferers who died from the diseases were also granted compensation in the year.

The Occupational Deafness Compensation Board administers the Occupational Deafness Compensation Scheme which provides compensation for persons employed in specified noisy Occupations who suffer hearing loss as a result of prolonged exposure to excessive noise at work, and financial assistance for hearing assistive devices. In 2014, the board approved 126

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