Assignment 2
Due 2025
, Safety Management III B
1. Objectives of Workers’ Compensation (10 marks)
Workers’ compensation is established to protect both employees and employers when
workplace injuries or occupational illnesses occur. Its main goals include:
• Financial Support for Employees: Injured or ill workers receive medical care and
wage replacement, preventing financial hardship during recovery.
• Protection for Employers: The statutory framework reduces the risk of costly
lawsuits, as employees claim benefits directly from the compensation system
instead of suing employers.
• Promotion of Safer Workplaces: Fewer accidents lead to fewer claims,
encouraging employers to implement preventive measures and safety programs.
• Rehabilitation and Reintegration: Compensation schemes often provide
rehabilitation services, assisting workers in regaining their abilities and returning
to work.
• Efficient Dispute Resolution: A streamlined claims process ensures that disputes
are handled fairly and benefits are accessed quickly.
• Social Security Contribution: Workers’ compensation provides a safety net for
employees and their dependents, reducing reliance on public welfare systems.
2. Who Pays Compensation? (10 marks)
The cost of workers’ compensation is primarily the responsibility of employers, as
workplace hazards arise from employment. Key points include:
• Employer Responsibility: Employers are legally obligated to compensate
employees who sustain work-related injuries or illnesses.
• Insurance Funding: Employers typically contribute to workers’ compensation
insurance funds, which pay benefits to affected employees.
• Premium Costs: While insurers manage payments, employers ultimately bear the
cost through insurance premiums, which may affect operating expenses.
Due 2025
, Safety Management III B
1. Objectives of Workers’ Compensation (10 marks)
Workers’ compensation is established to protect both employees and employers when
workplace injuries or occupational illnesses occur. Its main goals include:
• Financial Support for Employees: Injured or ill workers receive medical care and
wage replacement, preventing financial hardship during recovery.
• Protection for Employers: The statutory framework reduces the risk of costly
lawsuits, as employees claim benefits directly from the compensation system
instead of suing employers.
• Promotion of Safer Workplaces: Fewer accidents lead to fewer claims,
encouraging employers to implement preventive measures and safety programs.
• Rehabilitation and Reintegration: Compensation schemes often provide
rehabilitation services, assisting workers in regaining their abilities and returning
to work.
• Efficient Dispute Resolution: A streamlined claims process ensures that disputes
are handled fairly and benefits are accessed quickly.
• Social Security Contribution: Workers’ compensation provides a safety net for
employees and their dependents, reducing reliance on public welfare systems.
2. Who Pays Compensation? (10 marks)
The cost of workers’ compensation is primarily the responsibility of employers, as
workplace hazards arise from employment. Key points include:
• Employer Responsibility: Employers are legally obligated to compensate
employees who sustain work-related injuries or illnesses.
• Insurance Funding: Employers typically contribute to workers’ compensation
insurance funds, which pay benefits to affected employees.
• Premium Costs: While insurers manage payments, employers ultimately bear the
cost through insurance premiums, which may affect operating expenses.
