A Critical Review of Employee's Compensation Act, 2010

Labour law deals with the creation, regulation and formation of a contract of employment arising between one person and another for the purpose of apprenticeship or working for wages, whether or not the contract is to be executed independent of control, and determines all rights and duties incidental to that relationship both under the common law and statute. The laws which govern employment occupy a position of considerable importance in any modern society. This is practically true owing to the immense contributions which workers make to national growth and development. The right of a worker is the obligation owed to him by his employer under the contract of employment. Every contract of employment makes it a primary duty of employer to secure the safety of his worker in the course of employment. The philosophy behind the protection of employees from physical injurious harm, diseases and death runs through all rules of common law as well as statutory legislations.

Statutory legislations have had the effect of imposing additional liability on the employer in the attempt to regulate some of the industrial activities for the sake of the worker. The great advantage to the worker of the employer's liability under the statute is that the worker does not, as under the common law, have to prove negligence by his employer. All he has to show is that the statute has imposed a duty on the employer and that the said duty is owed to him either as an individual worker or as member of a group, that the employer has committed a breach of that statute or that he has suffered injury as a result. In Samson Ugochukwu V. Unipetrol (Nig) PLC, the Supreme Court held that a plaintiff has to establish that a defendant was

“in breach of his duty of care …” to him “before the defendant can be liable for the tort of negligence”.

Also in Groves V. Wimborne, Vaugham-Williams L.J. said:

“…where a statute provides for the performance by certain person of a particular duty and someone belonging to a class of persons for whose benefit and protection the statute imposes the duty is injured by failure to perform it, prime facie and if there be nothing to the contrary, an action will lie against the person who has failed to perform the duty”.

The nature of employee's compensation was briefly explained by Lord James of Hereford thus:

“The main object was to entitle a workman who sustained injury whilst engaged in certain employments to recover compensation from the employer, although he (the employer) was guilty of no fault. The intention was to make “the business” bear the burden of the accidents that arose in course of employment and relief from this liability is not found even if the injured workman be guilty of negligence”.

The employer remains the employee insurer. The amount of compensation must be as provided for in the statute. The basis of the claim has nothing to do with negligence or otherwise of the employer nor is the negligence of the employee himself or of a fellow employee relevant consideration. Once the work the employee is engaged in is within the circumference of his employment schedules, the question of negligence great or small is irrelevant. The statutory regulation of compensation for employee's injury and death was contained in Workmen's Compensation Act, until its repeal by the National Assembly in 2010. The extant law now is the Employee's Compensation Act 2010. This statute contains far reaching provisions for compensation to an employee who suffers injury in the course of his employment, is afflicted by occupational disease or even death. The 2010 Act provides greater coverage of compensation for victims than the old regime. Also the procedure for making claims and implementation mechanism under the new law has been simplified such that victims or their relations can obtain compensation speedily without unnecessary bottlenecks.

BASIS AND OBJECTIVES OF THE ACT
By virtue of section 1, the objectives of the Act include. To provide for an open and fair system of guaranteed and adequate compensation for all employees or their dependants for any death, injury, disease or disability arising out of or in the course of employment. To provide rehabilitation to employees with work-related disabilities; To establish and maintain a solvent compensation fund managed in the interest of employees and employers; To provide fair and adequate assessments for employers; To provide an appeal procedure that is simple fair and accessible with minimal delays and To combine efforts and resources of relevant stakeholders for the prevention of work place disabilities, including the enforcement of occupational safety and health standards. It is instruction to note that the Act applies to all employer and employees in both public and private sectors of the country. However the Act does not apply to any member of the Armed forces of the country unless a person employed in or by the Armed forces, in a civilian capacity. It provides thus;

“without prejudice to the generality of the provisions of section 2 of this Act, this Act shall not apply to any member of the armed forces of the Republic of Nigeria other than a person employed in a civilian capacity”.

The Act establishes the Nigerian Social Insurance Trust Fund Management Board;

“the Nigeria Social Insurance Trust Fund Management Board…shall have power to implement this Act and the Fund established under section 56 of this Act”

which has powers to implement the provisions of the Act and also manages the Employee's Compensation Fund. The Employee's Compensation Fund is credited with all moneys, funds or contributions by employers for adequate compensation to employee or their dependant for any death, injury, disability or disease arising out of or in the course of employment. Section 56 states thus;

“(1)there is established the Employee’s Compensation Fund(in this Act referred to as “the Fund”) into which shall be credited all moneys, funds or contributions 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. (2) The Fund established under subsection 1 of this section shall consist of (a) a take-off grant from the Federal Government; (b) contributions payable by employers into the Fund pursuant to this Act; (c) fees and assessments charged or made pursuant to this Act or any regulations made thereunder; (d) the proceeds or investments of the Fund (e) gifts and grants from any national or international organizations; and (f) any other money that may accrue to the Fund from any other source.”