Employment Disputes
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10. What are the arrangements for paying compensation?

In general, there are four ways to pay the compensation to an employee (or a deceased employee's family members):

i) Direct Payment

If the accident incapacitates the employee for not more than three days and does not result in permanent incapacity, the employer should make compensation for temporary incapacity on the employee's normal pay day.

ii) Direct Settlement

For injuries that involve only temporary incapacity for a period exceeding three days but not more than seven days, the employer may directly agree with the employee about the compensation payable and make such payment on or before the employee's normal pay day.

iii) Settlement by Certificate

For other cases, the Employees' Compensation Division of the Labour Department will issue to the employer and the employee a Certificate of Compensation Assessment (Form 5) stating the amount of compensation payable. The employer should pay the employee, within 21 days from the date of issue of the certificate, the amount of compensation, or any outstanding amount, that is stated in the certificate.

Employers who fail to pay the compensation are liable to a fine of $100,000.

iv) Settlement by Court

For cases that should be settled by direct payment (i.e. those involving temporary incapacity for a period not exceeding three days) but remain unsettled, the injured employee can recover the compensation from the employer in the Small Claims Tribunal. Other compensation claims that cannot be settled in the above ways will be determined by the District Court .

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