MNO3706
Assignment 3 Semester 2 2025
Unique Number:
Due Date: 12 September 2025
QUESTION 1
Explain the objectives of worker’s compensation.
Workers’ compensation is a legal and financial framework designed to protect employees
who are injured or made ill while performing their jobs. In South Africa, workers’
compensation laws are standardised to ensure fairness and consistency across industries.
The main objectives include income replacement, rehabilitation of the injured worker,
accident prevention, and cost allocation (Reese 2016:214).
The first objective is replacement of income. When employees are injured and unable to
work, they lose wages that support themselves and their families. Workers’ compensation
provides adequate and prompt income replacement for both current and future earnings,
ensuring that employees are not financially devastated by work-related injuries. These
benefits continue even if the employer ceases operations, offering long-term security to
affected workers (Reese 2016:215).
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
QUESTION 1
Explain the objectives of worker’s compensation.
Workers’ compensation is a legal and financial framework designed to protect
employees who are injured or made ill while performing their jobs. In South Africa,
workers’ compensation laws are standardised to ensure fairness and consistency
across industries. The main objectives include income replacement, rehabilitation of
the injured worker, accident prevention, and cost allocation (Reese 2016:214).
The first objective is replacement of income. When employees are injured and
unable to work, they lose wages that support themselves and their families. Workers’
compensation provides adequate and prompt income replacement for both current
and future earnings, ensuring that employees are not financially devastated by work-
related injuries. These benefits continue even if the employer ceases operations,
offering long-term security to affected workers (Reese 2016:215).
The second objective is rehabilitation of the injured employee. The compensation
system promotes the worker’s recovery and return to work, even if the return is to a
different role or department. Rehabilitation can include medical treatment, physical
therapy, and vocational re-training where necessary. This approach motivates
employees to re-enter the labour force as soon as possible, reducing dependency on
compensation and restoring productivity (Reese 2016:216).
The third objective is prevention of accidents. Employers are encouraged to invest
in workplace safety programmes and accident prevention measures. By reducing
workplace hazards, companies can minimise their compensation costs. Employers
who maintain strong safety records may benefit from lower insurance premiums,
making accident prevention financially beneficial (Reese 2016:217).
Finally, cost allocation ensures that compensation costs are fairly distributed
among industries. High-risk sectors, such as mining or construction, face greater
hazards and therefore bear higher premiums compared to low-risk sectors like
administration. This proportional cost distribution creates an incentive for employers
in hazardous industries to prioritise safety improvements and reduce workplace risks
(Reese 2016:218).
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 3 Semester 2 2025
Unique Number:
Due Date: 12 September 2025
QUESTION 1
Explain the objectives of worker’s compensation.
Workers’ compensation is a legal and financial framework designed to protect employees
who are injured or made ill while performing their jobs. In South Africa, workers’
compensation laws are standardised to ensure fairness and consistency across industries.
The main objectives include income replacement, rehabilitation of the injured worker,
accident prevention, and cost allocation (Reese 2016:214).
The first objective is replacement of income. When employees are injured and unable to
work, they lose wages that support themselves and their families. Workers’ compensation
provides adequate and prompt income replacement for both current and future earnings,
ensuring that employees are not financially devastated by work-related injuries. These
benefits continue even if the employer ceases operations, offering long-term security to
affected workers (Reese 2016:215).
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
QUESTION 1
Explain the objectives of worker’s compensation.
Workers’ compensation is a legal and financial framework designed to protect
employees who are injured or made ill while performing their jobs. In South Africa,
workers’ compensation laws are standardised to ensure fairness and consistency
across industries. The main objectives include income replacement, rehabilitation of
the injured worker, accident prevention, and cost allocation (Reese 2016:214).
The first objective is replacement of income. When employees are injured and
unable to work, they lose wages that support themselves and their families. Workers’
compensation provides adequate and prompt income replacement for both current
and future earnings, ensuring that employees are not financially devastated by work-
related injuries. These benefits continue even if the employer ceases operations,
offering long-term security to affected workers (Reese 2016:215).
The second objective is rehabilitation of the injured employee. The compensation
system promotes the worker’s recovery and return to work, even if the return is to a
different role or department. Rehabilitation can include medical treatment, physical
therapy, and vocational re-training where necessary. This approach motivates
employees to re-enter the labour force as soon as possible, reducing dependency on
compensation and restoring productivity (Reese 2016:216).
The third objective is prevention of accidents. Employers are encouraged to invest
in workplace safety programmes and accident prevention measures. By reducing
workplace hazards, companies can minimise their compensation costs. Employers
who maintain strong safety records may benefit from lower insurance premiums,
making accident prevention financially beneficial (Reese 2016:217).
Finally, cost allocation ensures that compensation costs are fairly distributed
among industries. High-risk sectors, such as mining or construction, face greater
hazards and therefore bear higher premiums compared to low-risk sectors like
administration. This proportional cost distribution creates an incentive for employers
in hazardous industries to prioritise safety improvements and reduce workplace risks
(Reese 2016:218).
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
