Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

1. Article 5 of the Convention. Payment of compensation in the form of periodical payments. In reply to the Committee’s previous comments, the Government reiterates in its report that in view of the very small number of potential beneficiaries and the administrative burden which would be created by a scheme of paying compensation in form of a pension, it does not consider changing the present system of compensation paid in a lump sum in the event of permanent disablement or death of workers. The Government also maintains its view that it is highly unlikely that the situation would arise whereby lump-sum compensation would not be properly utilized and indicates that, during the past two reporting periods, there have been no payments made under the workmen’s compensation legislation and only one common law damages payment made.

While taking due note of this information, the Committee is bound to recall the principle according to which industrial accident compensation in the event of permanent incapacity or death shall be paid in the form of periodical payments; it may exceptionally be paid in a lump sum, if the competent authority is satisfied that the funds will be properly utilized. The Committee, consequently, expresses once again the hope that the Government will re‑examine the matter so as to give effect to the Convention. In the meantime, the Committee would be grateful if the Government would continue to supply information on the number of cases and the form and amounts of compensation paid in case of industrial accidents and, where appropriate, the manner in which the competent authority ascertains the proper utilization of the compensation paid in a lump sum.

2. The Government also indicates in its report that the Executive Council has considered a paper on the provisions of the Workmen’s Compensation Ordinance, enacted in 1960, recognizing that the “no fault” compensation payable to workers under the Ordinance is far less than the damages for injury which can be claimed at common law by a worker or damages for death which can be claimed under the Fatal Accidents Act by a worker’s dependants where negligence on the part of the employer can be established. Consequently, a working party should be set up comprised of representatives of the private sector and the Government to examine the compensation provisions of the Ordinance and report back with its recommendations.

The Committee would be grateful if the Government would keep it informed of any new measures or decisions taken following the recommendations made by the above working party with respect to workers’ compensation in case of industrial accidents.