In: Accounting
discuss the Workmen’s Compensation Act, and its adequacy in ensuring effective protection of employees affected by Covid-19
Answer :- Workmen's compensation Act applies to Every person who is employed otherwise than in a clerical capacity, in railways factories, mines, plantations, mechanically propelled vehicles, loading and unloading work on a ship, construction, maintenance and repairs of roads and bridges, electricity generation, cinemas, catching or trading of wild elephants, circus, and other hazardous occupations and other employment specified under this act.
The State Governments are empowered to extend the scope of the Act to any class of persons whose occupations are considered hazardous after giving three months' notice in the official gazette. .
* All employee (including those employed through a contractor but does not include casual employees), who is engaged for the purposes of employer's business and who suffers an injury in any accident arising out of and in the course of his employment, shall be entitled for compensation under the Act.
* The main objectives of this act is to provide workmen and/or their dependents some relief in case of accidents arising out of and in the course of employment and causing either death or disablement of workmen.
* Adequacy in ensuring effective protection of employees affected by Covid-19:-
Legislation is pending or has passed in many states addressing Covid-19:- and workers' compensation benefits. The trend is so prevalent that the National Council on Compensation Insurance, which "gathers data, analyzes industry trends," tracks this information. Many states have extended coverage to first responders and healthcare workers, and Congress is considering federal legislation extending coverage to TSA workers. This still leaves all other employees of essential businesses facing a new risk (Covid-19):- in the same system.
Any of the following emergency legislation can be done:-
1. Higher Insurance Premiums = Workers' compensation insurance is already expensive in California. The Executive Order expressly allows "insurance carriers to adjust the costs of their policies." The cost of workers' compensation coverage will almost certainly increase to account for payout of benefits on covered Covid-19 related claims.
2.Deterring Businesses From Returning Employees to Work
3. Overloading Existing State Systems = State unemployment insurance benefits are for those who have no work, while workers' compensation insurance benefits are for those who get sick or injured at work and would otherwise be working.