Workers’ compensation, also known as employer-employee insurance, is an essential aspect of labour laws worldwide. It ensures employees receive financial support if they suffer injuries or illnesses while performing their jobs. While the concept remains the same across countries, its implementation varies significantly.
India
In India, the Employee’s Compensation Act, formerly called the Workmen Compensation Act, outlines the rules businesses must follow regarding compensation for workplace injuries. Businesses located across the country must follow these rules and provide compensation accordingly (see table below).
| Type of Disability | Compensation Offered |
| Temporary | Up to 25% of the employee’s monthly wages |
| Permanent total | 60% of the monthly wage or ₹1.4 lakh, whichever is higher |
| Permanent partial | Certain percentage of the earnings loss by employee due to injury |
| Death | 50% of the wages or ₹1.2 lakh, whichever is higher |
The United States of America
In the USA, specific regulations regarding workers compensation insurance vary from state to state. In general, these laws require most employers to contribute to an insurance fund that provides financial support to employees who suffer work-related injuries or illnesses.
However, not all workers are covered under these laws. Many states have exceptions based on the type of employment. One of the most common exclusions is for casual employees, i.e., those who do not have fixed working hours or guaranteed weekly shifts. Since these workers lack regular schedules, they often do not qualify for workers’ compensation benefits.
Another frequent exception applies to family members working for relatives, especially on farms. In some states, if a family member works fewer than 40 hours per week on a farm owned by a relative, they may not be entitled to workers’ compensation. However, these rules differ significantly across states.
Also, while some states have multiple exemptions, others provide broader coverage. Ohio, for instance, ensures workers’ compensation benefits for all employees. These include those working without legal documentation or formal hiring agreements. The extent of coverage depends entirely on the state’s specific laws and policies.
Canada
In Canada, workers’ compensation system operates through both national and provincial programs. Each province has its compensation plan, tailored to different industries and workforce requirements.
Workers’ compensation policies are regulated by the respective Workers’ Compensation Boards (WCBs) in each province. These boards determine when employers must provide coverage, the process for reporting workplace injuries and the eligibility criteria for employees seeking benefits.
The rules for employer registration vary across provinces. For instance, businesses with three or more employees must register for coverage in New Brunswick and Nova Scotia. On the other hand, in the Northwest Territories, companies are required to register with the WCB before hiring their first worker.
In conclusion
With evolving workplace environments, technological advancements and increased global awareness, workers’ compensation insurance need to adapt. The effectiveness of this policy depends on how well it covers the employees.
