EMPLOYEE'S COMPENSATION ACT, 2010

Act · Labour

Policy date: 2010-01-01

An Act establishes a compensation scheme for employees injured or killed at work, administered by the Nigeria Social Insurance Trust Fund. It targets all employees and employers in public and private sectors. This provides prompt support without proving fault.

EMPLOYEE'S COMPENSATION ACT, 2010

What Is This Policy?

An Act that establishes a comprehensive no-fault compensation scheme for employees who suffer workplace injuries, diseases, or death, administered by the Nigeria Social Insurance Trust Fund (NSITF).

Who Does It Target?

All employees in both public and private sectors Employers with one or more employees Dependants of employees who die from work-related causes NSITF as administering body

What Does It Aim to Achieve?

Provide guaranteed, prompt compensation for work-related injuries and diseases without requiring proof of employer negligence, and fund rehabilitation services for injured workers.

Key Features

No-Fault Compensation: Employees injured at work or who contract occupational diseases are entitled to compensation regardless of fault. Employer Contributions: Employers must contribute 1% of total monthly payroll to the Employee's Compensation Fund managed by NSITF. Medical Treatment: Covers the cost of necessary medical treatment, rehabilitation, and assistive devices for injured workers. Death Benefits: Provides lump sum payments and pensions to dependants of workers who die from work-related causes.

Current Status

Rollout Stage: Active - NSITF is operational and processing claims Coverage: Nationwide, covering all formal sector employers Beneficiaries: All employees and their dependants Funding: 1% monthly payroll contribution by all employers

How to Access

Employers must register with NSITF and remit monthly contributions Injured workers must report the injury to their employer within 14 days Claims must be filed with NSITF within the prescribed period Application method: Employers: register at https://www.nsitfng.org. Employees: file claims through their employer with NSITF.

Important Terms

Failure by employers to register and contribute attracts penalties Compensation is additional to any employment benefits; it does not replace them The Act does not bar common law civil suits in all cases

Impact & Metrics

Millions of Nigerian workers now covered by a statutory compensation framework, replacing the former common law only remedy.

Official Resources

Website: https://www.nsitfng.org Contact: Nigeria Social Insurance Trust Fund (NSITF)

Legal Framework

The Employees Compensation Act 2010 is the primary legislation on workplace compensation in Nigeria. It replaced the Workmen's Compensation Act and operates under the Labour Act, the National Industrial Court Act, and the Nigeria Social Insurance Trust Fund (NSITF) Act. Constitutional authority derives from Section 17(3)(b) of the 1999 Constitution (right of employees to just and humane work conditions). ILO Convention 121 on Employment Injury Benefits provides the international framework.

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