Compensation System Essay Example | Topics and Well Written Essays - 500 words

Compensation System - Essay Example take place in different plans like weekly or monthly payment of wages, economic loss compensation, payment of medical expenses and compensation to the dependants of a killed employee in the work place. Compensation of loss which occurs as a result of employee negligence does not take place in many jurisdictions. There many workers compensation systems which ensure that all employees have received their rights of compensation as stipulated in the Statutory. Longshore and Harbor Workers Compensation Act (LSA) cover all employees in the maritime industry. The Jones Act provides compensation and protection of seamen (Lee, 2009). Another program is called Federal Coal Mine Health Safety Act which covers people working in mine industries. It provides compensation to the miners who develop lungs complications. Veterans Administration is another program which provides compensation to people with complications and disabilities not related to their services (King, 2007). In case of disability insurance, an organization should provide weekly payment of wages. This will enable employees to care for medical and family expenses. The employee will receive money weekly, and this can help in quick recovery through receiving a favorable medical care. The company providing weekly payment can incur loss because of payment of processing fee each week instead of making a single payment. Economic loss compensation can be made for past and future loss (Max, 2012). Many people have provided wrong information about loss claim in order to get compensation in this plan. In case of health insurance, employee receives compensation for medical bills. This compensates workers when they develop a complication while providing services (Duke, 2010). The last plan is compensation of the dependants of employees who die in the work place. There same instances in which a person can not receive a compensation. When individual suffers as a result of negligence he/she does not get compensation from any