FULL NAMES:
STUDENT NUMBER:
MODULE CODE: MNO3706
MODULE NAME: SAFETY MANAGEMENT III B
ASSIGNMENT: 02
SEMESTER 01 (2024)
, 1. The objectives of workers’ compensation
Workers’ compensation laws are uniform in South Africa. According to Goetsch (2015),
the objectives of workers’ compensation are as follows:
• replacement of income
• rehabilitation of the injured employee
• the prevention of accidents
• cost allocation
• Replacement of income: Employees lose income if they are unable to work.
Workers’ compensation is intended to replace the lost income adequately and
promptly. 26 “Adequate income replacement” is viewed as the replacement of
current and future income. Workers’ compensation benefits are required to continue,
even if the employer goes out of business.
• Rehabilitation of the injured employee: A basic premise of workers’ compensation is
that the injured worker will return to work in every case possible, although not
necessarily in the same job or department. A major objective of workers’
compensation is to rehabilitate the injured employee until the employee is
pronounced fit to return to work. The programme also provides vocational training or
re-training as required. These components are intended to motivate the employee to
return to the labour force as soon as possible.
• Prevention of accidents: Preventing future accidents is a major objective of workers’
compensation. The theory underlying this objective is that employers will invest in
accident-prevention programmes to limit compensation costs. The payoff to
employers comes in the form of lower insurance premiums if such programmes are
instituted.
• Cost allocation: The potential risks associated with different occupations vary. For
example, being a miner is generally considered more hazardous than working as an
architect. The underlying principle of cost allocation is to spread the cost of workers’
compensation appropriately and proportionately among industries, ranging from the
most to the least hazardous. The cost of accidents should be allocated in
STUDENT NUMBER:
MODULE CODE: MNO3706
MODULE NAME: SAFETY MANAGEMENT III B
ASSIGNMENT: 02
SEMESTER 01 (2024)
, 1. The objectives of workers’ compensation
Workers’ compensation laws are uniform in South Africa. According to Goetsch (2015),
the objectives of workers’ compensation are as follows:
• replacement of income
• rehabilitation of the injured employee
• the prevention of accidents
• cost allocation
• Replacement of income: Employees lose income if they are unable to work.
Workers’ compensation is intended to replace the lost income adequately and
promptly. 26 “Adequate income replacement” is viewed as the replacement of
current and future income. Workers’ compensation benefits are required to continue,
even if the employer goes out of business.
• Rehabilitation of the injured employee: A basic premise of workers’ compensation is
that the injured worker will return to work in every case possible, although not
necessarily in the same job or department. A major objective of workers’
compensation is to rehabilitate the injured employee until the employee is
pronounced fit to return to work. The programme also provides vocational training or
re-training as required. These components are intended to motivate the employee to
return to the labour force as soon as possible.
• Prevention of accidents: Preventing future accidents is a major objective of workers’
compensation. The theory underlying this objective is that employers will invest in
accident-prevention programmes to limit compensation costs. The payoff to
employers comes in the form of lower insurance premiums if such programmes are
instituted.
• Cost allocation: The potential risks associated with different occupations vary. For
example, being a miner is generally considered more hazardous than working as an
architect. The underlying principle of cost allocation is to spread the cost of workers’
compensation appropriately and proportionately among industries, ranging from the
most to the least hazardous. The cost of accidents should be allocated in
