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Source: www.mom.gov.sg |
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Speech by Mr Gan Kim Yong,
Minister of State (Education and Manpower) for the 2nd Reading of
the Workmen’s Compensation (Amendment) Bill on 22 January 2008 |
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Purpose Of Workmen's Compensation |
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Under the common law, the injured worker has
to initiate legal actions to claim damages from his employer. To
succeed, the claimant has to prove that the employer had been negligent
and therefore held liable. He will need to gather sufficient evidence to
prove his case. |
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The Workmen's Compensation Act or WCA
provides a simpler and quicker way to settle compensation claims by
avoiding protracted legal proceedings. |
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An employee claiming under the Act is not
required to prove that his employer is at fault. He only needs to show
that his injury was sustained in the course of work. There is also a
fixed formula in the Act on the amount of compensation to be awarded,
and capped so that the financial liability on the employer is limited.
The no-fault claims and prescribed amounts of compensation serve to
facilitate and expedite claims under the WCA. However, employees can
still choose not to claim under the WCA, but instead to pursue damages
through the civil courts under the common law. |
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The workmen's compensation system has been
effective and efficient. Many employees have benefited under the system.
In 2007, about 17,000 claims were filed with MOM and more than $71
million in compensation payouts were awarded to the claimants. |
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However, the employment landscape has
changed since the WCA was enacted over 30 years ago. We need to
review and refresh the system to ensure that it continues to be
relevant and effective. |
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Hence, over the past year, MOM has
conducted extensive consultation with the public, the unions and the
businesses on the need to amend the Workmen's Compensation Act. More
than 200 comments have been received. I would like to take this
opportunity to thank all who have contributed, in particular the
Singapore National Employers Federation, the National Trades Union
Congress, the General Insurance Association of Singapore and many
other industry associations. |
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This Bill proposes changes to the WCA
in three key areas. First, the coverage of the Act has been
expanded. Second, compensation norms are updated to keep pace with
wage increases and changing circumstances. Third, changes are made
to streamline the process. In proposing the changes, MOM has been
mindful of the need to maintain a balanced approach so that the
amended Act would remain acceptable to both employees and
employers. |
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Sir, let me elaborate. |
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More..... |
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Source: www.mom.gov.sg
Press Release 22 Jan 2008 |
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