Domestic Helper Insurance; Responsibilities and Obligations

Domestic helpers. 

For the many new arrivals to Hong Kong employing the domestic helper is one of the major benefits of living in Asia’s World City. Having someone to help you with your daily life, cook your meals, do your laundry, and help with your errands can be literally lifesaving. For many residents from Western countries this is a new and novel situation; having full time help at home does not happen in places like the USA or UK unless you are tremendously wealthy.

However, with a minimum monthly wage of HK$ 4,870 for foreign domestic helpers in Hong Kong, hiring a maid is within reach for most families in the city, which means that most families do employ a domestic worker in some capacity.

Employing a Domestic Helper in Hong Kong

If you are employing a domestic helper in Hong Kong then you will have to satisfy local employment law and regulations regarding that worker. Once you have created an employment contract for the domestic helper, and have received the worker’s Hong Kong visa, you and your helper with be subject to Hong Kong labour law.

In most cases creating the contract of employment or domestic helper is simple, as a standard employment contract is offered by the immigration department of Hong Kong. The contract will last for two years in conjunction with the helper’s employment visa, and can be canceled by either the employer or domestic helper with at least one month notice. Domestic helpers must reside at the employer’s home address, and may only perform work in a domestic capacity exclusively for the employer holding the employment contract.

However, beyond these responsibilities there are additional obligations, of which many employers in Hong Kong are not aware; and ignorance is not going to protect an employer from the law if they fail in their responsibilities towards a domestic helper in their employ.

Domestic Helper Employer Responsibilities

Under Hong Kong law, any individual, who employs any worker, to perform any job, must hold a valid employee’s compensation insurance policy to cover their liability at law towards that worker suffering an accident or illness in the routine course of their employment.

This requirement for employee’s compensation insurance extends to employers of domestic helpers— if you pay money through a domestic helper to work in your home you must satisfy your obligations with respect to the employees’ compensation ordinance, and take out a policy as required by law for that worker.

In addition to this, as the employer of a Domestic Helper, under Hong Kong law you are obligated to provide free medical treatment for your helper if they are ill or when they suffer an injury, regardless of whether that need for care is caused by the helper’s employment. In the event that your helper suffers a serious accident in Central on their day off, then as the employer of that individual you are responsible for assisting with the costs of their medical treatment.

These costs can quickly add up, and put an excessive burden on employers in a worst-case scenario. As such, Domestic Helper Insurance can be a vital support for the employers of maids in Hong Kong.

Hong Kong Domestic Helper Insurance

Many Hong Kong insurance companies offer domestic helper insurance products specifically designed to cater to the needs of households employing in maid.

From the duration of the insurance policy, which mirrors the length of the helper’s employment contract (in that made insurance plans can last for up to two years at a time), to the flexibility you have as an employer in choosing the benefits you provide to your helper, domestic helper insurance can actually go far beyond satisfying your minimum legal obligations.

While it is possible to obtain domestic helper’s insurance that only offers employees compensation coverage, this leaves you (as an employer) extremely exposed in a worst-case situation. Consequently, insurance companies offer a number of flexible coverage solutions to ensure that you are managing your risk of employing a domestic helper as effectively as possible.

From Loss of Services coverage, Loan Protection Insurance, and even Repatriation Costs, domestic helper insurance products in Hong Kong can be extremely robust. In many cases these domestic helper insurance options will empower you to choose the exact coverage you feel you need for your maid – working both with your budget and your life to satisfy local law while protecting you against the financial outcomes of serious accidents.

Domestic Helper Insurance Over the Age of 64

For many people, their domestic helper is essentially part of their family – they will continue to employ their helper for many years, even after that individual has reached the normal age of retirement. In this situation, it may be possible to obtain the required Employees’ Compensation Insurance coverage to satisfy your liability at law. However, many of the extended benefits available under most Domestic Helper Insurance plans will be unavailable to you through a maid insurance package.

For example, if you would like to purchase Health Insurance protection for your domestic helper over the age of 64, you will likely need to do that on a standalone basis with a tailor-made Hong Kong Health Insurance policy.

This is due to the simple fact that, as people get older they are more likely to succumb to a serious illness or accident. Domestic Helper Insurance is designed to be an easy, straight-forward form of coverage and is not intended to take care of complicated risks – which would be the case of a helper over the age of 64.

Domestic Helper Insurance Advice in Hong Kong

If you are employing a domestic helper then it is important to stay on the right side of Hong Kong law. Failure to purchase the correct employees’ compensation insurance coverage for your maid can result in a steep fine and possible jail time. If your helper gets sick, it is your responsibility to provide free medical treatment.

While employing a domestic helper can make life easier, the administrative burdens of hiring a maid can be confusing – especially if you have not been a long term resident of Hong Kong. CCW Global can help walk you through all the maid insurance options that best meet the needs of your family and domestic helper. Our expert Hong Kong Insurance brokers will work with you to identify your concerns and build the insurance package that best protects you from those risks. With no-cost, no-obligation quotations we can help you to evaluate the market, and find your perfect Hong Kong domestic Helper Insurance policy.

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