The Labour Department today said an employer is liable to pay compensation if an employee sustains an injury or dies as a result of an accident arising from and in the course of the employment.

The department made the statement in response to concerns over compensation protection for employees.

It said the Employees' Compensation Ordinance requires all employers to take out a policy of insurance to cover their liabilities both under the ordinance and at common law for injuries at work in respect of their employees.

As specified in the ordinance, when an insured employer is liable to pay employees' compensation to an employee in respect of a work injury, such sum shall become due and payable by the insurer, notwithstanding anything to the contrary in the policy of insurance, the department added.