MNO3706
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Assignment 02
1. Objectives of Worker’s Compensation (10 Marks)
The main objective of workers’ compensation is to provide protection for employees
who are injured or become ill due to work-related activities. Workers’ compensation
ensures that injured employees receive medical care, wage replacement, and
rehabilitation support while recovering from their injuries. At the same time, it protects
employers from costly lawsuits by creating a structured system that resolves claims
fairly and efficiently. This system also promotes safer workplaces, since employers are
encouraged to implement safety measures to reduce the risk of accidents and injuries.
Moreover, it serves as a form of social security by safeguarding the well-being of
employees and their families when accidents occur at work (International Labour
Organization [ILO], 2017).
2. Who Pays Compensation? (10 Marks)
Compensation is typically paid by employers, either directly or through workers’
compensation insurance schemes. Since workplace hazards arise from employment,
the employer bears the responsibility for compensating injured workers. In most
systems, employers purchase insurance policies from licensed insurers or contribute to
a government-managed fund, which then pays out benefits to workers who file claims.
While insurance companies administer the payments, the cost of premiums is borne by
employers, not employees. Workers are legally protected from paying into the
compensation system, ensuring that they are not financially burdened by occupational
risks (WorkSafe, 2020). Therefore, even though insurers may handle claims, the
financial responsibility ultimately lies with employers.
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Assignment 02
1. Objectives of Worker’s Compensation (10 Marks)
The main objective of workers’ compensation is to provide protection for employees
who are injured or become ill due to work-related activities. Workers’ compensation
ensures that injured employees receive medical care, wage replacement, and
rehabilitation support while recovering from their injuries. At the same time, it protects
employers from costly lawsuits by creating a structured system that resolves claims
fairly and efficiently. This system also promotes safer workplaces, since employers are
encouraged to implement safety measures to reduce the risk of accidents and injuries.
Moreover, it serves as a form of social security by safeguarding the well-being of
employees and their families when accidents occur at work (International Labour
Organization [ILO], 2017).
2. Who Pays Compensation? (10 Marks)
Compensation is typically paid by employers, either directly or through workers’
compensation insurance schemes. Since workplace hazards arise from employment,
the employer bears the responsibility for compensating injured workers. In most
systems, employers purchase insurance policies from licensed insurers or contribute to
a government-managed fund, which then pays out benefits to workers who file claims.
While insurance companies administer the payments, the cost of premiums is borne by
employers, not employees. Workers are legally protected from paying into the
compensation system, ensuring that they are not financially burdened by occupational
risks (WorkSafe, 2020). Therefore, even though insurers may handle claims, the
financial responsibility ultimately lies with employers.
