Workers Compensation

Workers Compensation for Development of Organization

Compensation is all kind of financial returns, tangible services and remuneration employees obtain as the part of an employment relationship. In English “compensation” means something that counterbalances or makes up for something else. In Japanese word “compensation” means giving something.

Compensation is viewed by society as a measure of justice as well as a cause of increased taxes and price increases. Some people see pay as a measure of justice. To stockholder executive pay are more important relative to company performance. Linking executive pay to company performance is supposed to increase stockholders wealth. Managers view compensation as a major expense and a means to influence employee behavior. On the other hand, employees view compensation as return in an exchange with their employer entitlement or a reward for job well done in other countries such as China, Japan etc. Here employee’s investments are their education and training .Contributions are their time and energy which they are giving to the organization and compensation is their return on those investments and contributions. 

What is Workers Compensation?

Workers' compensation is a system of insurance which provides an economic incentive by employers to their employees for overcome accidents, illness or other hazardous environments. In Workers' compensation medical costs are the liability of employers.

Workers compensation is a system of insurance where all employers have to participate and in return employees were no longer permitted to bring a law suit for their injuries. Instead employees submit claims to the insurer and claims are paid. So we can say workers compensation insurance is necessary for any organizations employees.

Workers' compensation laws or acts mainly protect those people who are injured on the job. They are planned to ensure that employees who are injured or disabled on their job are provided with fixed financial awards, eliminating the need for legal action. These acts also provide benefits for the dependents of those workers who have given their life because of job-related accidents or illnesses. 

Workers compensation laws are designed to make certain payment by employers for some part of the cost of injuries or in some cases of occupational diseases come from employees in the course of their employment. Worker's compensation legislation needs employer to provide a reasonably safe place to work, appropriate equipment, policies and instructions. In most cases the employer is not responsible for accidents occurring outside the place of work or for those accidents which have not arisen directly from employment. Besides workers' compensation board’s (WCB) main mission is to provide timely and impartial resolution of arising disputes.