The Employees' Compensation Ordinance (ECO) applies to all employees who are employed under contracts of service or apprenticeship. They include caretakers, watchmen, cleaners, plumbers and electricians etc. employed by owners' corporations or residents' organisations.
If an employee is injured or dies in an accident arising out of and in the course of his employment, the employer concerned must notify the Employees' Compensation Division of the Labour Department and be responsible for compensation under the Ordinance.
The Ordinance makes it mandatory for employers to take out insurance policies to cover their liabilities under the ECO and at common law. Employers who fail to comply with the provisions of ECO are liable to prosecution.