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What is Workers’ Compensation?

You are diligently doing your job at the office and you suddenly get injured because of an accident. The injury is severe enough for you to miss time at work, and therefore, also losing your chances of earning money for yourself and your family.

Workers’ compensation exists so these types of incidents will have minimal financial impact on employees. Workers’ compensation is a type of insurance that can cover the treatment costs of injuries and illnesses that have been sustained while at work, salary replacements so the employee can still get paid despite his absence or minimal functionality, retraining costs, and other monetary fixes to possible damages.

What makes workers’ compensation so good is the fact that it eases the minds of the workers, because accidents and injuries will not put them on a financial burden. But in exchange, they cannot sue their employers for the damages. It is therefore fair to say that workers’ compensation benefits both employer and employee.

But it is important to note that there may be legal complexities regarding workers’ compensation. In fact, there are even legal professionals out there who specialize on these types of cases because of their complication.

There are also instances where workers’ compensation claims are denied, such as when it is proven that the employee has been negligent and has caused his own accident and injury. For example, if an employee has breached a safety procedure on the job and an accident and injury has occurred, his workers’ compensation claim may be rejected.

But once the claim has been approved, he may be able to enjoy the coverage of medical costs, salary replacements, and other aspects that can be covered according to the jurisdiction and its laws.
The salary replacement can also be complicated, as the equation for their computation may differ depending on the severity of the accident and injury. But the equation typically considers 2/3 of the employee’s salary, and the replacement can be temporary only if the injury is not serious or permanent if the injury is significant enough to affect the victim’s life forever.