Yes, you are obliged to purchase insurance for your employees to protect your company against any potential liability that may arise when there is an accident at work, as the insurance allows you to compensate your employee who suffers from a job injury or death. What does the insurance cover? Employees are covered by the Employees’ Compensation Ordinance for injuries arising because of or during the period of employment. All Hong Kong employers are liable to compensate their employees who are employed by an employment contract for their work injury, occupational disease, and death in the course of their employment. Employers are required to take out a policy of insurance concerning such liability, irrespective of the length of employment contract or working hours, full-time or part-time, permanent job or temporary employees. An employer who failed to buy compulsory insurance for employees is subject to a maximum fine of $100,000 and imprisonment for two years. Amount of insurance The minimum insurance cover is determined based on the number of employees. No. of EmployeesAmount of Insurance Cover per Event≤ 200not less than $100 million> 200not less than $200 million When your employee suffers a work injury The employer must notify the Commissioner for Labour of any work accident or prescribed occupational disease. Resulting inNotice PeriodFormWork injury Incapacity for a period not exceeding 3 daysForm 2b (https://www.labour.gov.hk/eng/form/ecd/pdf/f2b.pdf?formref=LAB-F141)Incapacity for a period exceeding 3 daysWithin 14 daysForm 2 (https://www.labour.gov.hk/eng/form/ecd/pdf/f2.pdf)DeathWithin 7 daysForm 2a (https://www.edb.gov.hk/attachment/en/sch-admin/admin/about-sch/sch-safety/19EC%20Form%202A_E.pdf)Occupational diseaseIncapacityDeathWithin 7 days The employer should notify the insurer (not the insurance broker) as soon as possible, within the stipulated period and in the specified format (in writing or by specified

The Mandatory Provident fund is a retirement protection framework set up by the Hong Kong Government, and acts as a safety net for retirement for the ageing population in Hong Kong. As the name suggests, it is mandatory for both the employers and employees to make contributions to the fund. Exceptions to the MPF If your employee is employed for at least 60 days, you must contribute to the MPF, unless they fall under any of the categories, for example: employees and self-employed persons who are under 18 or over 65 years of agedomestic employeesself-employed hawkers Choosing an MPF scheme As an employer, you would normally select which MPF scheme to contribute to, but you are encouraged to consult your employees before making the decision. You may also offer two or more MPF schemes for employees to choose from. You can compare different schemes on the MPF Fund Platform, provided by the MPF Authority. Size of MPF contribution Your contribution to the MPF will depend on your employee’s monthly income. Employee’s monthly incomeEmployer’s contribution Employee’s contributionMinimum relevant income level≤ HK$71005% of employee’s incomeNil. HK$ 7100-30,0005 % of employee’s income5 % of employee’s incomeMaximum relevant income level≥ HK$ 30,000 $1,500$1,500 When to make an MPF contribution On or before the 10th day of each month, employers must make the mandatory contribution for employees who are paid on a monthly basis. Within 7 working days of making the mandatory contributions, employers must provide each employee with a monthly pay record. The pay record should include the employee’s relevant income, the number of contributions made and the date the contributions were paid. If you have recently employed someone, you must enrol them into an MPF scheme within the first 60 days, and on the 10th day of that same month, you must make your first contribution to MPF. Key Takeaways An employer must make an

As an employer, there are a number of legal issues that you should be aware of. Here are some examples. Vicarious Liability Employers might be vicariously liable for the negligence of their employees during the course of employment, even when the employer has done nothing wrong. It is worth noting that the negligence committed by individual contractors does not count. Employers and human resources professionals should set clear guidelines on how the high-risk work to be delivered. Substantial supervision should also be provided to ensure a safe system at work. Labour law As an employer, you have certain responsibilities and duties to your employees, as stated in the case law and the statutes in Hong Kong. For example, rest days, holidays, wage protection and severance payment are clearly stated in the Employment Ordinance. These rights are granted to employees even when they are not stated in the contract. Therefore, you are suggested to read through the Employment Ordinance and the Minimum Wage Ordinance to understand your obligations as an employer. Work safety Employers have a duty to take reasonable care of their employees. This duty is not limited to death or injuries but also to industrial illness or disease. The duty is personal and non-delegable. You also have to take positive steps to protect the employees, for instance, providing a medical check and safety gear for employees. Employers must provide a safe working environment to their employees with consistent supervision. You might visit the Occupational Safety and Health Ordinance for the requirements of protecting the health and safety of the employees. Employers are also required to take out insurance policies that cover their potential liabilities for their employees under the Employee Compensation Ordinance. MPF Policy It is mandatory for employers and employees to make contributions to Mandatory Provident Fund (MPF). You may refer to What is the Mandatory Provident Fund