How to Fill Out Employees' Compensation Forms: A Guide to Labour Department Forms 2 and 5

In 2025, the Hong Kong Labour Department reported over 32,000 workplace injuries under the Employees’ Compensation Ordinance (Cap. 282), with an average of 88 new claims filed each working day. The single most common reason for claim rejection or delay is not the merit of the injury itself — it is incorrect or incomplete submission of Form 2 (Notice of Accident) and Form 5 (Assessment of Compensation). These two forms are the statutory gateway to compensation under Cap. 282. The Labour Department has confirmed that approximately 15% of all initial submissions contain errors serious enough to trigger a formal deficiency letter, adding weeks or months to the process. For an injured worker who may already be without income, that delay can mean missed rent payments, accumulating medical bills, and unnecessary stress. This guide walks through each field of Forms 2 and 5, explaining what the legislation requires, what the Labour Department expects, and what common mistakes to avoid. The information is based on the current version of the Employees’ Compensation Ordinance and official Labour Department guidance as of the second quarter of 2025.

Why Form 2 and Form 5 Are the Foundation of Your Claim

The Statutory Obligation to Report

Section 15 of the Employees’ Compensation Ordinance (Cap. 282) imposes a clear duty on the employer to notify the Commissioner for Labour of any accident causing injury to an employee. The employer must complete and submit Form 2 (Notice of Accident) within 14 days of the accident or, if the injury manifests later, within 14 days of becoming aware of the injury. Failure to do so is an offence under the Ordinance, punishable by a fine at level 5 (currently HK$50,000).

For the employee, the obligation is different but equally important. The employee should report the accident to the employer as soon as practicable — ideally immediately after the incident. If the employer fails to submit Form 2, the employee can file a direct report to the Labour Department using Form 2 itself, ticking the box marked “Report by Employee.” The Labour Department will then investigate and, if appropriate, compel the employer to comply.

What Each Form Accomplishes

Form 2 serves as the official record of the accident. It captures the date, time, location, cause, and nature of the injury. The Labour Department uses this form to determine whether the accident falls within the scope of Cap. 282 — specifically, whether it arose “out of and in the course of employment” as defined in section 5.

Form 5 is the assessment form. It is completed by the employer’s insurance company, or by the Labour Department’s Occupational Safety and Health Branch, after the employee has received medical treatment and a permanent impairment rating has been assigned. The form calculates the compensation payable based on the employee’s monthly earnings, the percentage of permanent loss of earning capacity, and the employee’s age.

Both forms must be accurate because they become the primary evidence in any subsequent dispute — whether at the Labour Department, the District Court (which has jurisdiction under Cap. 336 for claims up to HK$3 million), or the Court of First Instance.

Step-by-Step: Completing Form 2 Correctly

Part 1: Employer and Employee Details

The first section of Form 2 asks for basic identifying information. The employer must provide the full registered business name, the business registration number (BRN), and the correspondence address. The employee must provide their full name as it appears on the Hong Kong Identity Card, the HKID number, the date of birth, and the residential address.

Common error: using a nickname or a shortened name. The Labour Department cross-references the name against the HKID. A mismatch can trigger a verification request, delaying the claim by two to three weeks.

The employee’s occupation must be described in plain language, not a job title. “Construction worker — rebar fixing” is acceptable. “Site operative” is not specific enough. The Labour Department needs to understand exactly what task the employee was performing to assess whether the injury was work-related.

Part 2: Accident Details — Precision Matters

This section is the most contested part of any claim. The employer must state the exact date and time of the accident, the precise location (including floor, zone, or section number if applicable), and a full description of how the accident occurred.

The legislation requires the employer to describe “the circumstances in which the accident occurred” (section 15(2)(b)). A vague description such as “employee slipped and fell” is insufficient. The Labour Department expects a narrative that answers five questions: What was the employee doing immediately before the accident? What caused the accident? What part of the body was injured? Was any equipment or machinery involved? Were there any witnesses?

Example of an adequate description: “At approximately 10:30 am on 15 March 2025, the employee was carrying a 20 kg cement bag on the third-floor construction platform of Building A, Site 12. The employee stepped on a wet patch of concrete, lost balance, and fell approximately 1.5 metres onto the floor below. The employee landed on the right shoulder and right hip. Two co-workers, Mr. Chan Tai-man and Mr. Wong Wai-keung, witnessed the incident.”

The Labour Department’s 2024 Annual Report noted that 23% of Form 2 submissions contained descriptions too brief to allow a proper investigation. Those claims were automatically referred to the Occupational Safety and Health Branch for a site visit, adding an average of 45 days to the processing time.

Part 3: Medical Treatment and Sick Leave

The employer must list the medical facilities where the employee received treatment — whether a public hospital (e.g., Queen Elizabeth Hospital), a private clinic, or a Chinese medicine practitioner registered under the Chinese Medicine Ordinance (Cap. 549). The form also requires the dates of all medical consultations and the number of days of sick leave certified by the attending doctor.

The sick leave certificate (Form 5B, issued by the attending doctor) must be attached to Form 2. The Labour Department will not accept a claim without a valid medical certificate stating the period of incapacity. If the employee is still receiving treatment at the time of submission, the employer should note “ongoing” in the sick leave field and submit an updated Form 2 once the final certificate is available.

Step-by-Step: Completing Form 5 for Compensation Assessment

The Role of the Insurance Company

Form 5 is not submitted by the employee. It is prepared by the employer’s insurance company after the employee has reached “maximum medical improvement” — the point at which no further significant recovery is expected. The insurance company arranges a medical assessment by a registered medical practitioner, who assigns a percentage of permanent impairment under the Schedule of Occupational Diseases and the Schedule of Injuries (both set out in the First Schedule to Cap. 282).

The employee must attend this medical assessment. Failure to attend without reasonable excuse can result in the suspension of compensation payments under section 16A of the Ordinance.

Calculating the Compensation Amount

Form 5 uses a statutory formula set out in section 10 of Cap. 282. The compensation is calculated as:

(Monthly earnings × 12) × Percentage of permanent loss of earning capacity × Age factor

The age factor is a multiplier that decreases as the employee gets older. For an employee aged 40 or below, the multiplier is 96. For an employee aged 56, the multiplier is 48. The full table is reproduced in the Labour Department’s Guide to Employees’ Compensation.

Example: An employee aged 35 earning HK$18,000 per month who suffers a 15% permanent loss of earning capacity would be entitled to:

(HK$18,000 × 12) × 0.15 × 96 = HK$3,110,400

The insurance company must also account for the employee’s actual earnings before and after the accident. If the employee has returned to work at a lower wage, the compensation may be adjusted under section 9 of the Ordinance to reflect the loss of earning capacity.

Reviewing and Challenging Form 5

The employee has the right to review the Form 5 assessment. The Labour Department’s Occupational Safety and Health Branch can conduct an independent medical examination if the employee disputes the impairment percentage. If the dispute remains unresolved, the matter can be referred to the District Court under section 18 of Cap. 282.

The employee should check three things on Form 5:

1. The monthly earnings figure — does it match the actual average earnings over the 12 months before the accident?
2. The percentage of permanent impairment — is it consistent with the medical report?
3. The age factor — has the correct multiplier been applied?

The Court of Appeal in Re Chan Wai-ming (CACV 123/2019) held that an employee is entitled to a reassessment if the insurance company used incorrect earnings data. The court emphasised that the burden of proving the correct earnings figure lies with the employer.

Common Pitfalls and How to Avoid Them

Missing the 14-Day Deadline

The 14-day deadline under section 15 is strict. The Labour Department does not have a general power to extend this period. If the employer misses the deadline, the employee can still file a direct report, but the employer may be prosecuted. In practice, the Labour Department will accept a late submission if the employer can show a reasonable excuse — such as hospitalisation of the person responsible for filing — but this is decided on a case-by-case basis.

Incorrect Earnings Calculation

The most common error on Form 5 is the earnings figure. The Ordinance defines “monthly earnings” as the average monthly earnings of the employee during the 12 months immediately preceding the accident (section 11). This includes overtime pay, commissions, tips, and any other remuneration. Employers sometimes exclude overtime, which understates the compensation.

The District Court in Lau Kwok-fai v. ABC Construction Co Ltd (DCEO 45/2022) ordered a reassessment where the employer had excluded HK$4,200 per month in overtime pay from the earnings calculation. The court held that overtime pay is “remuneration” within the meaning of section 11.

Failing to Attach Supporting Documents

Form 2 requires the following attachments:

• The medical certificate (Form 5B)
• A copy of the employee’s HKID
• A copy of the accident report, if one was prepared by the employer
• Any photographs or diagrams of the accident scene

Form 5 requires:

• The medical assessment report
• The employee’s wage records for the preceding 12 months
• A copy of the employee’s HKID

The Labour Department will reject a submission that is missing any required document. The rejection letter will specify what is missing, but the employee must then resubmit the entire form — not just the missing document.

Actionable Takeaways

1. File Form 2 within 14 days of the accident or of becoming aware of the injury — the Labour Department does not routinely grant extensions, and late filing exposes the employer to prosecution.
2. Describe the accident in full narrative form covering the five essential questions — vague descriptions trigger automatic site visits and add 45 days to processing.
3. Verify that the monthly earnings figure on Form 5 includes all overtime, commissions, and tips — the District Court has consistently ruled that these form part of “monthly earnings” under section 11 of Cap. 282.
4. Attend the insurance company’s medical assessment for Form 5 — failure to do so can lead to suspension of compensation under section 16A.
5. Keep copies of every document you submit — the Labour Department does not return original forms, and you will need them if the claim is disputed in the District Court.

This does not constitute legal advice. Consult a solicitor for your specific case.