EMPLOYEE’S COMPENSATION ACT 2010: A BRIEF APPRAISAL By James Ode Abah Esq. The Employee’s Compensation Act was signed and passed into law in 2010. The act repealed the workmen’s compensation Act Cap .W6 LFN, 2004 and made provisions for compensations for any death, injury, disease or disability arising out of or in the course of employment and for other matters related thereto. The Act provides the scope of application in terms of employee compensation to apply to all employers and employees in the public and private sectors in the Federal Republic of Nigeria. However it is important to note that the Act does not apply to any member of the armed forces of the Federal Republic of Nigeria other than a person employed in a civilian capacity. One notable provision of the Act can be gleaned from the provisions of Section 56 which establishes the Employee’s Compensation Fund. By the establishment of the Employee compensation Fund all moneys, funds or contributions shall be credited by employers for adequate compensation to employees or their dependants for any death, injury, disability or disease arising out of or in the course of employment. The Act also states that the fund established shall consist of a take –off grant from the Federal Government, contributions payable by employers into the Fund, fees and assessments charged or made pursuant to the Act or any regulations made by the board. Also the proceeds of the investments of the Fund, gifts and grants from any national and international organizations and including any other money that may accrue to the Fund from any other source shall also form part of the fund. Furthermore, the Fund established under section 56 of the Act is meant to be managed by the Nigeria Social Insurance Trust Fund Management Board which was earlier established under the Nigeria Social Insurance Trust Fund Act 1993. The Act specifically provides in section 58, that the Fund established shall be applied or expended for the following purposes to wit: Payment of adequate compensation for all employees or their dependants for any injury, disease or disability arising out of or in the course of employment. The provision of rehabilitation to employees with work-related disabilities. Payment of remuneration and allowances of members and staff of the Board. Supporting activities and programmes on the prevention of occupational accidents and hazards and the promotion of occupational safety and health at workplace. Purchase of any equipment or material required for carrying out the functions of the Board under the Act and Carrying out any activity or doing anything in respect of any of the Functions of the Board. Another significant and striking development is provided in section 13 of the Act which is to the effect that no employee shall agree with his employer to waive or to forego any benefit or right to the compensation to which the employee or the dependants are or may become liable under the Act as any agreement in whatever form between the employer and the employee to waive or forego any benefit or right of an employee shall be void and unenforceable. The Act has also created the framework in respect of the procedure for making claims for compensation in Part ii of the Act specifically in sections 4 -6. In a situation of any injury or disabling occupational disease to an employee in a workplace within the scope of the Act, the employee or the his dependants in case death shall within 14 days of the occurrence of the or receipt of information of the occurrence inform the employer by giving information of the disease or injury to the manager, supervisor, first aid attendant, agent in charge of the work of the employer where the injury occurred. It is important to note that the said information of disease or injury to the employee must include the name of the employee affected, the time and place of the occurrence and in the ordinary language, the nature and cause of the disease or injury if known. It is clear from the provisions of Section4 (4) of the Act that the failure to provide the information required at the time of occurrence of an occupational disease or injury to the employer is a bar to a claim of compensation unless the Board is satisfied that the information is sufficient to describe the disease or injury suffered, or in a situation where it is established that the employer or the employers representative had knowledge of it and the employer will not be prejudiced or if the interests of Justice requires that the claim be allowed. The Employer also has an obligation and duty under the Act to report to the board and the nearest office of the National Council for occupational Safety and Health in the state of the death, injury or disease of an employee within 7 days of the occurrence of the issue. Also an application for compensation is meant to be made on a form which shall be prescribed by the Board and shall be signed by the employee or the deceased employee’s dependant. It is noteworthy that an application for compensation is to be filed within one year after the date of the death, injury or disability arising from an occupational accident or disease or no compensation shall be payable. The only exception is the situation where the Board is satisfied that special circumstances existed which precluded the filing of an application for employee compensation within the period of one year; however this must be done within a period of 3 years after the date of occurrence of the injury. The scale of compensation is also provided in Part IV of the Act and varies from the nature of injury suffered and the other detailed factors specified therein. Also employers are mandated by Section 39 of the Act to provide estimate of pay rolls. Every employer is expected to: Keep at all times at some place in Nigeria, the location and address of which the employer has given notice to the Board, complete and accurate particulars of the employer’s payrolls. Cause to be furnished with Board – When the employer becomes an employer within the scope of the Act. At other times as required by any regulation made by Board of general application or any decision of the Board limited to the specific employer, an estimate of the probable amount of the payroll of each of the employer’s industries within the scope of this Act, together with any further information required by the Board. Provide signed copies of reports of the employer’s payrolls, not later than the 31st December in each year or such other times and in the manner required by the Board. The Act in section 62 established also the Independent Investment Committee which functions include the carrying out of investment surveys in the economy and drawing up a list of safe investment, from time to time, initiating and carrying out of independent assessment of the investment activities of the board and also carrying out any duty or activity the Board may from time to time direct. It is an offence for a person required under the Act to provide information to the Board for knowingly providing the board with any false or misleading information. Such person shall be liable for first conviction to imprisonment for term not exceeding 6 months or a fine not exceeding N200, 000.00 or both or each subsequent conviction to imprisonment for a term not exceeding one year or a fine not exceeding N500, 000 or both. Illiterates are also recognized by the Act as regards the procedure for the application for compensation which is more relaxed. Section 69 of the Act provides that the Board may waive any requirement under the Act for an illiterate person to provide written notice and may accept instead of a notice any form which the Board deems appropriate. Finally, the Act has interpreted – accident to mean an occurrence arising out of or in the course of work which results in fatal or non-fatal occupational injury that may lead to compensation under the Act. Board to mean The Nigerian Social Insurance Trust Fund Management Board established under The Nigeria Social Insurance Trust Fund Act, 1993. Compensation to mean any amount payable or service provided under the Act in respect of a disabled employee and includes rehabilitation. Dependent to mean and include those members of family , including adoptive and foster family, of the deceased or disabled employee who were wholly dependent upon his earnings at the time of death, or would but for the disability due to the occupational accident or diseases , have been so dependent. Employee means a person employed by an employer under oral or written contract of employment whether on a continuous, part time, temporary, apprenticeship or casual basis and includes a domestic servant who is not a member of the family of the employer including any person employed in the Federal, State and Local Governments, and any of the government agencies and the formal and informal sectors of the economy. Employer includes any individual, body corporate, Federal, State or Local Government or any of the government agencies who has entered into a contract of employment to employ any other person as an employee or apprentice. Fund means the Employees’ Compensation Fund established under section 56 of the Act. Work place includes any premises or place where a person performs work or needs to be or is required to be in the course of employment. Work related in reference to a disability of an employee means a disability arising out of and in the course of employment. This write up is just a brief appraisal of the provisions of the Act. It is vital for employees and employers together with their unions to familiarize themselves in view of comprehending the provisions of the Act which is vital for the development of social security of Nigerian workers. A critical reflection of the provisions of the Act looks promising in addressing employee compensation in respect of injuries and disabilities sustained in a work place. However time will tell if the Act will adequately address the shortcomings of the Workmen’s Compensation Act Cap W6 LFN 2004.
Posted on: Sun, 30 Jun 2013 10:23:06 +0000
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