Global HR Glossary

What is Workers’ Compensation? 

Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. This system is designed to facilitate the quick and efficient treatment and recovery of workers without the need for litigation, ensuring employees receive necessary medical care and financial support during their recovery. Workers' compensation is mandatory in many jurisdictions, and its provisions can vary widely between regions.

Benefits of Workers' Compensation

• Coverage for Medical Expenses: Pays for all medical treatments related to work injuries.
• Disability Benefits: Compensates employees for wages lost due to work-related injury or illness.
• Rehabilitation Support: Covers rehabilitation costs to help employees return to work.

For employers, maintaining an effective workers' compensation program is essential for minimizing the financial impact of workplace injuries, enhancing employee morale, and meeting regulatory requirements.

Regular safety training and workplace assessments can help reduce the frequency and severity of work-related injuries, lowering insurance premiums and improving overall workplace safety.