Workers’ compensation is a form of insurance providing wage replacement and medical benefits to employees injured work injury compensation act singapore pdf the course of employment in exchange for mandatory relinquishment of the employee’s right to sue their employer for the tort of negligence. The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system is known as “the compensation bargain”. One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards.
The system of collective liability was created to prevent that, and thus to ensure security of compensation to the workers. Individual immunity is the necessary corollary to collective liability. General damage for pain and suffering, and punitive damages for employer negligence, are generally not available in workers’ compensation plans, and negligence is generally not an issue in the case. These laws were first enacted in Europe and Oceania, with the United States following shortly thereafter.
The Fellow Servant Doctrine is that employer can be held harmless to the extent that injury was caused in whole or in part by a peer of the injured worker. Contributory negligence allows an employer to be held harmless to the extent that the injured employee failed to use adequate precautions required by ordinary prudence.
Assumption of risk allows an employer to be held harmless to the extent the injured employee voluntarily accepted the risks associated with the work. Designed to ensure employees who are injured or disabled on the job are not required to cover medical bills related to their on-the-job injury, the laws provide employees with monetary awards to cover loss of wages directly related to the accident as well as to compensate for permanent physical impairments. The laws also provide benefits for dependents of those workers who are killed in work-related accidents or illnesses.
Some laws also protect employers and fellow workers by limiting the amount an injured employee can recover from an employer and by eliminating the liability of co-workers in most accidents. US state statutes establish this framework for most employment.