Hong Kong Work Injury Compensation: Rights After Resignation, Employer Duties and Scam Prevention

Who is covered: cross-border workers included

Hong Kong's Employees' Compensation Ordinance (Cap. 282) establishes a no-fault compensation system: as long as an accident arises out of and in the course of employment, the employer must compensate according to the Ordinance regardless of fault on either side. Imported workers admitted under the Enhanced Supplementary Labour Scheme (ESLS) enjoy exactly the same protection as local employees.

One official position matters especially for cross-border employment: an employee employed by a Hong Kong employer in Hong Kong who is injured while working outside Hong Kong is also covered by the Ordinance. A posting whose visa is Hong Kong-based but whose work site is elsewhere does not leave the work-injury protection behind in Hong Kong.

Coverage presupposes an employment relationship. In practice the assessment looks at who pays the wages, who controls how and when the work is done, and whether the work forms part of the employer's business. A proper written contract plus retained wage records is the first step in protecting your position if an injury ever happens.

• Employed in Hong Kong and injured while working in Hong Kong — the Ordinance applies directly
• Employed in Hong Kong by a Hong Kong employer and injured while working outside Hong Kong — also covered
• Suffering from an occupational disease specified in the Second Schedule to the Ordinance, diagnosed by a registered medical practitioner — handled as an injury case
• Whether an accident arises out of and in the course of employment is determined by the Labour Department on the facts

Employer duty one: compulsory insurance and accident reporting

Employers must take out valid employees' compensation insurance for all employees — full-time, part-time and imported workers alike. Under the current standard, where the number of employees does not exceed 200, the policy must cover at least HK$100 million per event. Failing to insure is a criminal offence carrying a maximum fine of HK$100,000 and two years' imprisonment.

The second statutory duty is reporting. Under section 15 of the Ordinance, when an employee suffers an accident in the course of employment the employer must report it to the Commissioner for Labour within the prescribed period — even if the employer believes it bears no liability. Where there are doubts, the grounds and materials should be attached to the report (Form 2) for the Labour Department's Employees' Compensation Division to follow up.

Late or knowingly false reporting carries a maximum fine of HK$50,000. The practical impact is larger: reporting is the starting point of the employee's compensation process, so delay slows down the payment for the employee and prolongs the dispute for the employer alike.

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Employer duty two: periodic payments and medical fees (2026 caps)

Periodic payments are commonly known as work-injury sickness pay. While the employee is temporarily incapacitated (on sickness absence due to the injury), the employer must pay periodic payments calculated as: (monthly earnings at the time of the accident − monthly earnings after the accident) × 4/5. Payments for temporary incapacity run for up to 24 months; the employee may apply to the court for an extension of up to 12 further months.

On medical fees, the employer must reimburse within 21 days of the employee producing the receipts. The daily maximum caps rose on 1 January 2026: outpatient treatment HK$500 per day, inpatient treatment HK$300 per day, and HK$700 per day where both inpatient and outpatient treatment are given on the same day. This guide states the 2026 caps announced by the Government; the old caps (outpatient HK$300, same-day HK$370) no longer apply.

One detail often missed in cross-border cases: unless the parties agree otherwise in writing, the employer is not liable for medical expenses incurred outside Hong Kong. Where cross-border treatment is contemplated, settle the cost arrangement in writing beforehand to avoid disputes later.

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Resignation does not end the liability

This is the question imported workers care about most, and the one employers most often blur: if the employee resigns after a work injury while the case is still open, must the employer keep paying? Under the Labour Department's published position: as long as the employee produces sick-leave certificates issued by a registered medical practitioner, registered Chinese medicine practitioner or registered dentist showing absence due to the work injury (that is, a period of temporary incapacity), then regardless of whether the employment contract has been terminated, the employer must still pay periodic payments for that period, plus medical fees and compensation for permanent incapacity under the Ordinance.

In short: the employee may resign, but the liability does not leave with the job. An imported worker whose contract has expired and who has returned to the mainland can continue to claim periodic payments and medical fees under the Ordinance while the case remains open with complete sick-leave records; any permanent-incapacity component follows the Labour Department's assessment.

The Ordinance also protects the injured employee's job: during the specified period before assessment is completed, dismissing the injured employee without the written consent of the Commissioner for Labour is an offence carrying a maximum fine of HK$100,000. And any contract term that purports to exclude or limit the employer's liability under the Ordinance is void — a private "sign away the claim on resignation" deal has no legal effect.

How monthly earnings are calculated: the more-favourable rule

Compensation is built on "monthly earnings", which includes wages, overtime pay, commissions and tips as specified by the Ordinance. For trades with irregular starting dates — catering, retail and construction are exactly where imported workers concentrate — the Ordinance prescribes the more favourable of two measures: the complete monthly earnings for the one month preceding the accident, or the average monthly earnings over the preceding 12 months, whichever is more favourable to the employee; where employment lasted less than 12 months, the average is taken over the actual period.

Periodic payments and other compensation are subject to a cap on monthly earnings, currently HK$38,670 (effective 17 April 2025). Both employers and employees should put the structure of basic salary, allowances and commissions in writing and keep full wage records — in a real case, "how earnings are counted" is usually where the dispute starts.

Sick-leave follow-up and assessment

Where the sickness absence does not exceed 7 days and there is no permanent incapacity, handling is simpler: the employer may settle the case with the employee by direct payment (Form 2B) or by agreement (Part H of Form 2).

Where the absence exceeds 7 days, the case must go through sick-leave follow-up and assessment: the Labour Department arranges an assessment to determine the degree of permanent incapacity and issues a certificate of assessment, and compensation for permanent incapacity follows that result.

To shorten the process, the parties may apply to resolve the case by the written sick-leave follow-up method instead of repeated attendances. The applicable conditions are:

• the case is not in dispute
• the sickness absence exceeds 7 days (absences of 7 days or fewer are handled by direct payment or agreement)
• there is no permanent incapacity
• the case does not involve compensation for teeth, prosthetic human organs or surgical appliances
• all sickness certificates were issued by registered medical practitioners, registered Chinese medicine practitioners or registered dentists
• the sickness period has ended
• the employer provides copies of all sickness certificates
• if the case is an occupational disease, it must be one specified in the Second Schedule to the Ordinance

What an employer should do when in doubt

If the employer doubts the case — whether the accident happened at work, or whether the injury matches the medical record — the right response is not to stall the payment but to nail down the facts quickly:

• Initial investigation: interview the injured employee, ask the witnesses present, assess the work environment at the scene, and request a medical report from the attending doctor
• Contact the insurer: arrange an examination by the insurance company's designated doctor
• Take legal advice: get advice early on complex cases
• Suspected fraud: if forged documents or other fraud is suspected, report the matter to the police

Questions go to the Labour Department; rulings belong to the courts

Questions about procedure — reporting, sick-leave follow-up, form-filling — can be raised with the Labour Department's Employees' Compensation Division. But know the boundary: the Labour Department has no judicial power and cannot decide who is right. If a compensation dispute cannot be settled by negotiation, it must ultimately be decided by the court.

The boundary cuts both ways: an employee should not assume that "once the Labour Department is involved the money is guaranteed", and an employer should not assume that "if the employee goes to the Labour Department the employer loses" — it is the evidence and grounds both sides file that the court will rule on.

Compensation amounts (April 2025 figures)

Fatal and permanent-incapacity cases are compensated within the statutory framework, adjusted by the employee's age and monthly earnings. The current amounts took effect on 17 April 2025:

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Beware "claims agents"

Large sums attract self-styled "claims agents" promising "guaranteed wins" and "money without court". Be warned: in Hong Kong, maintaining or champertising another person's legal proceedings is itself an offence carrying up to 7 years' imprisonment on conviction.

There are only three legitimate channels: the Labour Department's Employees' Compensation Division (advice and procedure), the licensed insurer and its designated doctors (claims process), and a practising lawyer (legal representation). Anyone asking for money up front, asking you to transfer the case, or signing documents on your behalf should be cut off immediately.

A note from Zhigang: if you are an imported worker facing a work-injury dispute, understand the process through this guide first and then use the proper channels. Employers seeking contract or case-handling support can contact the Zhigang Hong Kong service team; verify the holder and current status of the displayed EA licence number 82950 in the Labour Department register.

FAQ

• Q: If I resign after a work injury, can I still receive sickness-period payments? A: Yes. With sick-leave certificates from a registered medical practitioner, Chinese medicine practitioner or dentist, the employer must keep paying periodic payments and medical fees while the case is open; termination of the contract does not end the liability.
• Q: If the employer believes the accident was not work-related, can it skip reporting? A: No. Section 15 requires reporting within 14 days (7 days for fatalities) regardless of liability, with any doubts attached to Form 2.
• Q: How are periodic payments calculated? A: (Monthly earnings at the accident − monthly earnings after) × 4/5, for up to 24 months of temporary incapacity, extendable by the court for up to 12 more months.
• Q: Am I covered if injured while working outside Hong Kong for a Hong Kong employer? A: Yes. The Ordinance covers employees employed in Hong Kong by a Hong Kong employer who are injured while working outside Hong Kong.
• Q: Will the Labour Department recover compensation from the employer for me? A: It provides advice and procedural assistance but has no judicial power; unresolved disputes are decided by the court.
• Q: Do these amounts and deadlines change? A: Yes. The Government reviews the caps and amounts from time to time; this article states the effective date of each figure, and individual cases follow the Labour Department's latest published positions.