Workers' compensation rules protect employer and employee
Workers' compensation, or workers' comp, is insurance meant to protect employees from losing their personal assets and going into debt or bankruptcy in the event that they are injured on the job and are no longer capable of performing their duties. However, it also protects employers because, in return, injured employees who receive workers' compensation during the time they are unable to work agree not to sue their employer for negligence in protecting their safety while on the job. While it is not universal, workers' compensation insurance is standard in developed industrial nations like the United States and Canada.
Advantages of Workers' Comp
For employees, the main advantage of a workers' compensation system is fairly obvious: they have the peace of mind in knowing that, in the case of a significant injury that could keep them from working for the short- or long-term, their wages will be secured and their financial interests protected from creditors.
As discussed above, for employers the major advantage of workers' compensation is to avoid legal consequences. Another, less obvious employer advantage of workers' compensation is employee disposition: higher employee morale and faith in the employer are likely if that employer offers guaranteed protection in the event of injury. Employers can also purchase insurance to protect them from being hurt financially in cases where one or several injuries threaten to damage the company's productivity.
Consulting a Workers' Compensation Lawyer
Knowing workers' compensation rules means contacting a workers' compensation lawyer. Because the employment law surrounding workers' comp has changed dramatically in the last two decades, it's important for anyone involved in a claim or dispute with an employer to get the right legal advice. Both employee and employer need to understand what kind of settlement is possible, because each claim is unique. For example, workers' compensation cases may be affected by the type of injury and by the future capability of a worker to find permanent employment. One employee who is injured a work-related accident may be able to secure some form of limited employment in the future, while another, more seriously injured worker with no ability to find future work would likely receive a larger compensation package.