Workers’ Compensation

What is Workers’ Compensation?

Workers’ compensation is a form of insurance that employers are generally required to carry, providing benefits to employees who are injured or become ill as a direct result of their job. Benefits typically cover medical expenses, rehabilitation costs, and a portion of lost wages during the recovery period.

Why Workers’ Compensation Matters

In most jurisdictions, workers’ compensation operates as a no-fault system, meaning employees receive benefits regardless of who caused the injury, and in return they typically cannot sue their employer for negligence. Employers fund workers’ compensation through insurance premiums, which are influenced by factors such as industry risk, claims history, and payroll size. HR teams play an important role in managing claims, ensuring workplace safety, and facilitating return-to-work programmes.