EMPLOYEE'S COMPENSATION ACT, 2010

An act to repeal the workmen’s compensation act cap. W6 lfn, 2004 and to make provisions for compensations for any death, injury, disease or disability arising out of or in the course of employment ; and for related matters. 

Employee’s Compensation Act, 2010 is a social security/welfare scheme that provides comprehensive compensation to employees who suffer from occupational diseases or sustain injuries arising from accidents at workplace or in the course of employment. The basis or justification for ‘compensation’ is the employer’s duty of care. The idea of compensation suggests that someone has suffered a wrong for which he has to be compensated monetarily. This implies that another person has a duty to prevent the occurrence of the wrong suffered.

Payment of compensation by the employer to the employee is rooted in the accepted principle that the employer has a duty of care, a duty to protect the health, welfare and safety of workers at work. Where the worker sustains injuries, gets ill or dies in work-related circumstances, the employer is liable to pay compensation to the worker or to his dependents, in the event of death. The foregoing forms the underlying philosophy behind the enactment of the Employee’s Compensation Act, 2010 (hereinafter called “the Act”).

ARRANGEMENT OF SECTIONS

PART 1—PRELIMINARY PROVISIONS

1. Objectives of the Act.

2. Scope and Application, etc.

3. Exemptions

PART II—PROCEDURES FOR MAKING CLAIMS

4. Employee’s Notification of injury.

5. Employer’s obligation to Report Death, injury or disease of an Employee.

6. Application for Compensation.

PART III—COMPENSATION FOR DEATH, INJURY OR DISEASE

7. Compensation for Injury.

8. Compensation for Mental Stress.

9. Compensation for Occupational Disease.

10. Compensation for Hearing Impairment.

11. Compensation for Injuries occurring outside the normal Workplace.

12. Limitation of Actions, Subrogation, etc.

13. Compensation cannot be Waived.

14. Contribution by Employees for Compensation Prohibited.

15. Compensation not assignable or liable to attachment.

16. Vocational Rehabilitation, etc.

PART IV—SCALE OF COMPENSATION

17. Compensation in Fatal Cases.

18. Compensation relating to enemy warlike actions.

19. Period for making Payments.

20. Proof of existence of Dependants.

21. Permanent Total Disability.

22. Permanent Partial Disability or Disfigurement.

23. Period of payment for permanent total or partial disability.

24. Temporary Total Disability.

25. Temporary Partial Disability.

26. Health Care and Disability Support.

27. Duty of Accredited Medical Practitioner and other Specialists.

28. Retirement Benefits.

29. Payment of Retirement Benefits.

30. Reconsidering Benefits.

PART V—POWERS AND FUNCTIONS OF THE BOARD

31. Powers of the Board.

32. Functions of the Board.

PART VI—EMPLOYERS’ASSESSMENT AND CONTRIBUTIONS

33. Employers’ Contribution to the Fund.

34. Assessments.

35. Assessment Payable.

36. Liability for Assessment, etc.

37. Assessment Rates.

38. Employer Classification.

39. Employer to Provide Estimate of Payrolls.

40. Statement and Estimate of Earnings.

41. Employer’s Experience Accounts.

42. Super Assessment.

43. Merit Rating.

44. Liability for Assessment of Independent Contractors and Sub-Contractors.

45. Security for Payment of Assessment or Provision of Security.

46. Penalty for Non-payment of Assessment or Provision of Security.

47. Decision of the Board.

48. Provisional Assessment.

49. Temporary Industry.

50. Employer Commencing or Recommencing a Business.

51. Employer Ceasing to be an Employer.

52. Records of Remuneration and Operations.

53. Examination.

54. Enforcement Powers.

55. Right of Appeal.

PART VII—FINANCIAL PROVISIONS

56. Establishment of the Compensation Fund.

57. Management of the Fund, etc.

58. Expenditures of the Fund.

59. Annual Estimates, etc.

60. Accounts and Audit.

61. Annual Reports, etc.

PART VIII—ESTABLISHMENT OF THE INVESTMENT COMMITTEE, ETC.

62. Establishment of the Investment Committee.

63. Functions of the Investment Committee.

PART IX—MISCELLANEOUS PROVISIONS

64. Power to make Regulations.

65. Providing False Information.

66. Confidentiality.

67. Non-Compellability.

68. Records and Notices.

69. Illiteracy.

70. Priority as to amounts due to the Fund in the Case of employer’s Insolvency.

71. General Penalty.

72. Repeal of Cap. 470 LFN and Savings.

73. Interpretation.

74. Citation.