How To Claim For Compensation For Occupational Injuries Or Diseases

By Michael Dugeri (ESQ)
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Nigeria has a scheme that provides comprehensive compensation to employees who suffer from occupational diseases or sustain injuries arising from accidents at workplace or in the course of employment. In addition, there is provision for rehabilitation for injured employees in work places and replacement of loss of productivity to the employer.

Payment of compensation by the employer to the employee is rooted in the accepted principle that the employer has a duty of care, a duty to protect the health, welfare and safety of workers at work. Where the worker sustains injuries, gets ill or dies in work-related circumstances, the employer is liable to pay compensation to the worker or to his dependents, in the event of death.

Employee’s Compensation Scheme
The Employee’s Compensation Scheme (ECS) is established by the Employees Compensation Act 2010 (“the law”) and it is managed by the Nigerian Social Insurance Trust Fund (“NSITF”). The law requires every employer to make a minimum monthly contribution of 1% (one percent) of the employees’ total monthly payroll into a fund known as “Employees Compensation Fund”. Kindly note that the duty to contribute into the Fund is imposed on the employer alone; employees are not liable to deductions from their salaries/wages for this purpose.

There is a long list of occupational diseases stated in the law for which compensation is available; such as diseases caused by chemical agents, hearing impairments caused by noise, infectious or parasitic diseases, diseases of the lung due to aluminium, Broncho pulmonary diseases caused by hard metal dust, occupational asthma, skin diseases, occupational cancer, etc.

Interestingly, there is also compensation under the law for “occupational mental stress”. This is in line with contemporary OSH standards, which emphasize equal attention to the physical, social and mental aspects of the workers’ health. Nigeria’s work environment is bursting of factors that can easily affect a worker’s mental health; such as unreasonable work workload, inconsiderate work schedules, poor remuneration and deficient welfare package, wanton neglect of safety measures, etc.

Who is an employee qualifying for compensation for occupational injuries or diseases? Every person, other than members of the armed forces, employed in any form or capacity and by anybody or organisation, government or private. Some employers are in the habit of insuring only permanent staff while excluding casual workers. This is totally unlawful. The law defines an employee to include both permanent and casual workers, since every employee is exposed to some level of risk at the workplace.

The nature of compensation payable depends on the nature of the incident. The compensation to be paid may be in the form of periodic payments or a lump sum payment. For instance, if an injury results in permanent total disability of the employee, the compensation payable to the employee is a periodic payment equal to 90% of the remuneration of the employee; while if a temporary total disability results from an employee's injury, the employee could be paid lump sum compensation.

Where death results from the injury of an employee, compensation is payable to the dependants of the deceased. For instance, for fatal accident leading to death, a widow/widower who depend wholly on their spouse with 2 or more children gets 90% of the deceased employee’s remuneration on monthly basis, for life. While a spouse, not being invalid and having no dependent children, but under the age of 50 years receives not less than 30%.

In addition to monetary compensation, the law provides that the injured employee may be entitled, in deserving cases, to any medical, surgical, hospital, nursing and other care or treatment, transport or medicines. The NSITF may also make a daily allowance for the subsistence of an injured employee when, under its direction, the employee is undergoing treatment at a place other than the place where the employee resides.

Procedure for Making Claims
In every case of an occupational injury or disease, the employee, or in case of death the dependant, shall within 14 days of the occurrence or receipt of the information of the occurrence, inform the employer. The information shall include the time and place of the occurrence; and in ordinary language, the nature and cause of the disease or injury if known.

The employer is required to mandatorily report to the nearest office of the NSITF within 7 days of the incident, and “Claim for Compensation” on behalf of the injured or sick or deceased employee. The report is in a prescribed format and shall state:

  • the name and address of the employee;
  • the time and place of the disease, injury or death;
  • the nature of the injury or alleged injury;
  • the name and address of any specialist or accredited medical practitioner who attended to the employee; and
  • any other particular required by the NSITF.

Employers are to note that failure to report known occupational injuries, diseases or death (except minor injuries) is an offence under the law. The report need not be physically submitted. The employer can download the prescribed Forms from the NSITF website: www.nsitf.gov.ng and submit the report by mail. The employer’s “Claim for Compensation” on behalf of the injured or sick or deceased employee is to be accompanied with the following:

  • Receipt for treatment
  • Details of all bills signed by the medical professional with their practicing number
  • Details of affidavit deposed to by the employee confirming the accident or occupational disease
  • Police report
  • Death certificate (where death occurs)
  • Any other supporting documents necessary to make the claim

The law provides that the NSITF shall maintain “experience accounts” for each employer, and charge to such accounts the cost of any claim from the employees of an affected employer. This underscores the importance of registration by every employer with the NSITF and regular remittance of the stipulated 1% of total monthly emoluments.

Compensation for occupational injuries, diseases or death is sacrosanct. No employee is allowed by law to agree with his employer to waive or to forego any benefit or right to compensation to which the employee or his dependants are entitled. Any such agreement in whatever form is void and unenforceable. Also, a sum payable as compensation is not to be assigned, charged or attached. Furthermore, payment of compensation or periodic benefits under the Employees Compensation Act is different from payment of retirement benefits under the pension Reform Act. The law is clear that both payments are not to affect each other. In other words, in deserving cases, an individual can be entitled to both at the same time.

The Board of the NSITF is responsible for making all payments of the various compensation or benefits for occupational injuries, diseases and deaths. A person not satisfied with any decision of the Board may, with 180 days, appeal to the Board for a review of such decision. Further appeals lie to the National Industrial Court.

It pays to know your rights as an employee, and when in doubt, consult a lawyer!

Michael Dugeri is a Lagos based lawyer and Humanitarian.

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