AN APPRAISAL OF EMPLOYEES’ COMPENSATION: NIGERIAN EMPLOYEES’ COMPENSATION ACT, 2010 IN PERSPECTIVE

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ABSTRACT

Employer and Employee relationship creates mutual duties and responsibilities which are complimentary. This duty is for the Safety and Health of the employee. The Government, on the other hand, has a complimentary role to play in the discharge of this duty, hence the duty now create a tripartite responsibility which is mutual and complimentary. To an Employee; the responsibility is to take care of him/herself and a fellow employee in the course of the employment. The Employer has the responsibility among several others to compensate an injured employee while the Government responsibility is to create and enforce its policies towards the welfare of all employees among several other responsibilities. However, the welfare of employees in both Public and Private Sectors have remained a mirage despite their contributions to national growth. The Government has now awaken to discharge one of its responsibility through a backed up legislation; Employees‟ Compensation Act, 2010. Although, there are previous legislation on workers‟ compensation, the new Act has distinguished itself by being all encompassing in scope and application. The Scheme, which is a Social Insurance, is being run by a government agency; Nigeria Social Insurance Trust Fund (NSITF) for six (6) years now. The question that readily comes to mind is how has the scheme touched, improved or set proper path for the welfare of the Nigerian employees? The aim of this research is to appraise the Employees‟ Compensation Act, 2010 with the objectives of appraising the prospects and challenges of the Act, to examine the operation of NSITF in relation to the support for employees‟ compensation and finally to proffer solutions to some flaws of the Act for future amendments. The research methodology adopted is doctrinaland the research has made several findings among which are; the State- Managed Scheme operated presently has hindered the acceptance and effectiveness of the employees‟ compensation scheme in Nigeria. Also some provisions of the Act are over flawed and unconstitutional. Therefore, if the Scheme will be jointly operated with Private firms such as the Pension Scheme, it will go a long way in addressing other challenges discovered in the course of this research like the excessive discretionary powers of the Board of NSITF. Some of the provisions of the Act like Section 12 should be amended as it is unconstitutional to deny an injured employee recourse to the Court for the determination of his civil rights and obligations. Compliance with the scheme can be sustained where the certificate of registration issued by NSITF is being recognized as mandatory for pre-qualification for tender, registration of companies and budget approval for Ministries, Departments and Agencies (MDAs).

TABLE OF CONTENTS
Title Page – – – – – – – – – – -i
Declaration – – – – – – – – – – -ii
Certification – – – – – – – – – – -iii
Dedication – – – – – – – – – – -iv
Acknowledgement – – – – – – – – – -v
Table of Cases – – – – – – – – – – -vii
Table of Statutes – – – – – – – – – -ix
Table of Abbreviations – – – – – – – – -x
Table of Contents – – – – – – – – – -xi
Abstract – – – – – – – – – – -xv

CHAPTER ONE: GENERAL INTRODUCTION
1.1 Background to the Study- – – – – – – – -1
1.2 Statement of Problems – – – – – – – -5
1.3 Aim and Objectives of the Research- – – – – – -7
1.4 Justification – – – – – – – – – -8
1.5 Scope and Limitations of the Research – – – – – -8
1.6 Literature Review- – – – – – – – – -9
1.7 Research Methodology- – – – – – – – -14
1.8 Organizational Layout- – – – – – – – -15

CHAPTER TWO: HISTORICAL DEVELOPMENT OF EMPLOYMENT CONTRACT

AND EMPLOYEES’ COMPENSATION IN NIGERIA

2.1 Introduction – – – – – – – – – -17
2.2 Brief History of Employment – – – – – – – -17
2.2.1 Nature of Employment – – – – – – – -20
2.3 Contract of Employment and Contract for Employment- – – – -22
2.4 The Employer‟s Duty of Care – – – – – – – -24
2.5 Negligence and Breach of the Duty by the Employer- – – – -27
2.6 Meaning of Employees‟ Compensation- – – – – – -30
2.6.1 Purpose of Employees‟ Compensation – – – – – -32
2.7 The Evolution of Employee‟s Compensation Laws in Nigeria- – – -33
2.7.1 The Workmen Compensation Ordinance, 1942 – – – – -35
2.7.2 The Workmen‟s Compensation Act, 1987 – – – – – -36

CHAPTER THREE: AN APPRAISAL OF THE EMPLOYEES’ COMPENSATION ACT,

2010.
3.1 Introduction – – – – – – – – – -39
3.2 Scope and Objectives of the Act- – – – – – – -40
3.3 Compensation for Death, Injury and Disability – – – – -44
3.3.1 Injury – – – – – – – – – – -45
3.3.2 Mental Stress – – – – – – – – – -47
3.3.3 Occupational Disease- – – – – – – – -50

3.3.4 Hearing Impairment – – – – – – – – -52
3.3.5 Death – – – – – – – – – – -54
3.4 Scales of Compensation Claims- – – – – – – -56
3.4.1 Scale of Compensation for Fatal Cases – – – – – -57
3.4.2 Scale of Compensation for Permanent Total Disability – – – -61
3.4.3 Scale of Compensation for Permanent Partial Disability or Disfigurement – -64
3.4.4 Scale of Compensation for Temporary Total Disability – – – -67
3.4.5 Scale of Compensation for Temporary Partial Disability – – – -68
3.4.6 Scale of Compensation relating to Enemy War-like – – – – -69
3.5 Healthcare Benefits, Disability Support & Rehabilitation – – – -70
3.6 Conditions for a Claim of Compensation under the Act- – – – -72
3.6.1 Time Limit – – – – – – – – – -72
3.6.2 Notification of Injury – – – – – – – – -73
3.6.3 Election to sue in Court – – – – – – – -73
3.6.4 Age Limit – – – – – – – – – -73
3.7 Procedures for a claim of Compensation – – – – – -74
3.7.1 Employee‟s Notification of Injury – – – – – – -74
3.7.2 Employer‟s Report to the Board – – – – – – -75
3.7.3 Application for Compensation – – – – – – -76
3.8 Compensation Rights of an Employee/Dependant – – – – -77

CHAPTER FOUR: NIGERIAN SOCIAL INSURANCE TRUST FUND AS A
COMPENSATION REGULATORY INSTITUTION.
4.1 Introduction – – – – – – – – – -79
4.2 Brief History of Insurance Schemes in Nigeria – – – – -80
4.3 Meaning of Social Insurance Scheme- – – – – – -83
4.3.1 Purpose of Social Insurance Scheme- – – – – – – -84
4.4 The Structure of Nigeria Social Insurance Trust Fund (NSITF)- – – -85
4.5 The Role of the Board – – – – – – – -86
4.5.1 Employers‟ Assessments and Contributions to the – – – – – -89
4.5.2 Management/Investment of the Fund – – – – – – -91
4.6 The Decision of the Board- – – – – – – – -94
4.7 Right of Appeal – – – – – – – – -95
4.8 National Policy on Occupational Safety and Health- – – – – -97
CHAPTER FIVE: CONCLUSION
5.1 Summary – – – – – – – – – -101
5.2 Findings – – – – – – – – – -103
5.3 Recommendations – – – – – – – – -105
5.4 Bibliography- – – – – – – – – – -108

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