The Labour and Employment Act 2007, which has been in place for nearly two decades, mandates employers to compensate their employees for any workplace-related accidents. However, despite clear legal provisions, many employers remain unaware of the legal consequences of non-compliance. The Department of Labour received seven compensation-related complaints from employees last year.
Workers’ compensation refers to a system where employers are legally obligated to provide benefits to employees who suffer injuries or illnesses arising from their work.
According to the Regulation on Occupational Health and Safety Welfare 2022, compensation includes medical expenses and compensation if the injury leads to permanent disability or death.
“If an accident occurs due to an unsafe working environment, compensation is mandatory. Although the Labour and Employment Act 2007 has been in place for nearly two decades, many people remain unaware of their rights,” said Phuntsho Dendup, a senior labour officer with the Department of Labour, MoICE.
He added that employers must take responsibility to compensate employees for the loss of earning capacity resulting from workplace injuries or death.
The senior labour officer also said that not all workplace accidents are entitled to compensation. The compensation is provided after the eligibility is assessed by labour officers.
“In a workplace, injuries or accidents can affect an employee’s ability to earn a livelihood. If the injured or deceased employee is the primary breadwinner of the family, the employer should take this into account and provide appropriate compensation.”
According to the Labour and Employment Act and the Regulation on Occupational Health and Safety Welfare 2022, employers or insurance companies are punishable if they do not report workplace accidents within 24 hours. The penalty for not reporting can range from 90 times the Daily National Minimum Wage for the first offense to 360 times the Daily National Minimum Wage for repeated offenses.
According to the Labour and Employment Act 2007, failure to compensate is considered an offense of fourth-degree felony.
The issue resurfaced today during the Construction Safety Supervisors Training conducted by the Institute of Technology and Professional Learning.
Officials also believe that numerous cases go unreported due to workers’ lack of awareness about their legal rights and entitlements.
The Department of Labour recorded 22 workplace-related accidents last year, of which 17 were injury-related cases and five were death cases.
The training focused on raising awareness about employees’ legal rights to workplace compensation. Participants from the construction sectors, hotel industry, and telecommunications attended the training.
As part of the National Occupational Health and Safety Strategy, the department, in collaboration with private training institutes, plans to raise awareness starting at the gewog and chiwog levels.
Sangay Chozom & Kinley Bidha
Edited by Phub Gyem
