Observation (CEACR) - adoptée 2008, publiée 98ème session CIT (2009)

The Committee notes the information provided by the Government reporting the adoption in 2000 of new legislation respecting workers’ compensation. In this respect, it notes with satisfaction that, following the many comments that it has made for many years, the Government has taken the opportunity to adopt the above Act in order to bring the national legislation into conformity with certain principles set out in Article 5 of the Convention. This is one of the essential provisions of the Convention which establishes that the compensation payable in the event of employment injury resulting in permanent incapacity or death shall, in principle, be paid in the form of periodical payments and may only be paid in the form of a lump sum when guarantees are provided to the competent authorities of its proper utilization. This provision is intended to protect victims of employment injury or their dependants against the improper use of funds intended to compensate the permanent loss of income resulting from an employment accident.

The Committee accordingly notes that, under section 3(8) of the Workers’ Compensation Act of 2000 (Chapter 225), compensation in cases of permanent incapacity or death shall, in accordance with the provisions of the Convention, be paid in the form of periodical payments. In cases of total or partial permanent incapacity, any compensation due shall be paid by the employer to the district labour officer, who then pays such sums to the beneficiaries concerned (section 26). In practice, nevertheless, according to the Government’s report, payments are still in the form of a lump sum, except in the case of minors, who receive periodical payments. The Government adds that the Commissioner for Labour decides whether the compensation is to be paid wholly or partially, but no guarantees of the proper utilization of the compensation are usually required.

While welcoming the amendment of the national legislation establishing the principle of compensation due in the event of an employment accident resulting in death or permanent incapacity paid in the form of periodical payments, the Committee invites the Government to take the necessary measures (for example, through circulars addressed to the commissioners for labour in the various districts) to ensure compliance with this principle in practice and to provide information in this respect in its next report. The Committee also observes that, contrary to the provisions of the Convention, sections 5 and 6 of the Act of 2000 limit the amount of compensation to a sum equal to 60 months’ earnings or to a percentage of this sum corresponding to the recognized percentage of loss of capacity. In this respect, it is bound to hope that the Government will make every effort to take the necessary measures in the near future to give effect in law and practice to Article 5 of the Convention, which provides in the case of both permanent incapacity and death for the payment of benefits in the form of periodical payments without limit of time.