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WORKERS COMPENSATION FUND (WCF)

Implementation of the

Workers Compensation Act, 2008

Coverage Introduction

Administration of the Fund

Objectives of the Fund

Current Status in the Implementation of the Act

Benefits Offered under the Act

Rights & Obligations of Employers

Rights & Obligations of Employees

Stakeholders’ Expectations

Fund’s Expectations 2

Introduction WCF is a social security scheme meant to compensate

workers (or their dependants in workers die) for accidents suffered & diseases contracted in course of employment as per provisions of the Workers Compensation Act No. 20 of 2008

All employers in the public & private are required to contribute to the Fund. These contributions are made on behalf of their employees (S.2)

Contribution rates (tariff rates) are to be determined periodically depending on risk assessment & other related factors (S. 74(3))

3

Introduction

Prior to WC Act, 2008 the old Workers Compensation Act (Cap 263) has been handling administrative procedures for payment of compensation

The maximum compensation payable under Cap 263 is TZS 108,000 (since 1983) but employers had the option to pay their effected employees more than the maximum amount

Employees in public sector had room to route their compensation claims through the President’s Office, Public Service Management under the Public Service Act (& Public Service Regulations) where maximum compensation payable is TZS 12 million

4

Administration of the Fund

The Fund is under Ministry of Labour & Employment

The Board of Trustees established under S.12 is generally responsible for control & administration of the Fund

The Director General, appointed under S. 6 of the Act, is responsible for daily administration of the Fund

Under the Director General, there will directors, managers and other staff to assist the Director General in executing daily functions of the Fund

The Plan is to have branches over the country in order to bring service close to beneficiaries

5

Objectives of the Fund (S.3)

Adequate and equitable compensation

Rehabilitation of affected employees

Effective, prompt, empathetic settlement of benefits

Establishment, control, and admin of WCF

International obligations

Prevention of accidents & occupational disease

6

Current Status in the Implementation of the Act

The Minister has powers to appoint different dates of commencement for different Parts or provisions of the Act (S. 1 (2))

The 1st March, 11 was the commencement date on which Parts I, II, III & XII except for S. 98 (Govt Notice No. 105, 11th March 11)

Pursuant to operationalization of Parts II & III of the Act, members of the Board of Trustees & Director General were appointed with effect from 22nd Jan. 15

The 1st July, 15 is the commencement date for payment of Tariff (Govt Notice No. 169, 1st May 15) 7

Current Status in the Implementation of the Act (GN No.169)

• Tariff is 0.5% of AEE (public sector) (S. 6.1 of GN no. 169)

• Tariff is 1% of AEE (private sector ) (S. 6.2 of GN no. 169)

• There is a transition period for 1 year (1st July 15 - 30th June 16)(S. 8 (1)/(2) of GN No. 169)

• During the period, contributions shall be collected from all employers (S. 9 (1) of GN No. 169)

• WCF shall not effect compensation payments during the transition period (S. 9 (2) of GN No. 169)

• Payments of benefits during the period shall continue to be effected as per currently done (S. 9 (3) of GN No. 169)

• Regulations to operationalize all parts of the Act, except for Section 98 of the Act, are expected in July 15

8


Compensation for Temporary Total Disablement (TTD) or Temporary Partial Disablement (TPD)(S. 46)

• 70% of employee's monthly earnings at the time of the accident, s/t min. & max. amounts to be set (S46(1)) (TTD)

• Proportion of 70% of employee's monthly earnings at the time of the accident, s/t min. & max. amounts to be set (S46(2)) (TPD)

Compensation for Permanent Disablement (S. 48 (4))

• 70% of employee's monthly earnings at the time of the accident (for 100% permanent disability)

• Proportion of 70% of employee's monthly earnings at the time of the accident (for less than 100% permanent disability)

9

Benefits Offered under the Act Constant Attendance Care Grants (S. 51)

• Paid to someone taking care of a disabled employee who is unable to perform essential functions of his life without the constant attendance care of someone else

Dependants’ Grant if an Employee Dies (S. 52 (1))

• Spouse or someone leaving with the deceased as husband & wife (i.e. deemed spouse)(S.52(1)(a))

Either twice the monthly pension of the deceased or

40% of monthly pension to the deceased had he been 100% permanently disabled

10

Benefits Offered under the Act Dependants’ Grant if an Employee Dies (S. 52 (1))

(Cont’ed)

• A child below 18 years (or above if unable to earn income) (20% of monthly pension to the deceased had he been 100% permanently disabled) )(S.52(1)(b))

• A child in circumstances where the spouse or deemed spouse are absent ) (maximum benefit: 40% of monthly pension to the deceased had he been 100% permanently disabled) )(S.52(1)(c))

11

Benefits Offered under the Act Dependants’ Grant if an Employee Dies (S. 52

(1)) (Cont’ed)

• A dependant in circumstances where the spouse or deemed spouse and child are absent). Maximum benefit is )(S.52(1)(d)(i) & (ii))

:

Either 40% of monthly pension to the deceased had he been 100% permanently disabled & there was 100% dependence or

A lump sum if there was partial dependence

12

Benefits Offered under the Act Dependants’ Grant if an Employee Dies (S. 52 (2) )

(Cont’ed)

• Where an employee leaves two or more dependants (as opposed to only one dependant), then:

Compensation payable to all shall not exceed the lump sum pension which would have been payable if the employee had left only one dependant

The Director General may, if one of the dependants dies, allocate his pension to his children, if any, or, if there are no children, to the other remaining dependant (s)

13


Funeral Grant (S. 53)

• Compensation payable shall be within the limits set out in item 9 of the 4th Schedule, for an employee who dies as a result of an injury caused by an accident

• Minister may make regulations prescribing how calculations of the amount payable shall be

Conveyance of Injured Employee (S. 61 (1) of the Act)

• Payment of reasonable cost incurred in respect of conveyance between employee’s residence & hospital or where hospital services are available

14


Medical Aid (S. 62)

• Payment of reasonable cost incurred by or on behalf of an employee in respect of medical aid necessitated by the accident or disease

Rehabilitation Benefits (S.69 )

• For restoration of employee's health, independence & participation in society to the maximum extent practicable (options which may be considered: clinical rehabilitation, vocational rehabilitation & social rehabilitation)

15

Rights and Obligations of Employers Under the Act

Rights

Right Not to Pay for Compensation Benefits

• Employers have the right not to pay for compensation benefits which are provided under Part VI and Part VII of the Act as the Fund is obliged to pay these benefits instead

Reasons for Decisions to be availed (S. 88)

• The Director General or the authorized person, as the case may be, shall furnish reasons for a decision to a person affected by that decision (S. 88 (1))

16


Rights

Appeal Against Decisions of the Director General & the Minister (S. 80)

• Appeal to the Minister against the decision of Director General within 30 working days from the date of decision(S. 80 (1))

• Appeal to the Labour Court against the decision of the Minister within 60 working days from the date of decision (S. 80 (2))

17


Obligations

Payment of Compensation for Temporary Disablement for the 1st Month (S. 46)

• The employer in whose service an employee is at the time of the accident shall be liable for the payment of the compensation for temporary disablement, of the 1st month from the date of accident (S.46 (3))

• After expiry of the 1st month, the Director General shall refund the compensation paid by the employer under S.46 (3) (S.46 (4))

18


Obligations

Notice of Accident by Employer to the Director General (S. 34)

• An employer shall, within 7 days after being aware of an accident, report the accident to the Director General in a prescribed form (S. 34 (1))

Notice of Occupational Disease by (Employee) & Employer (S. 35)

• An employer shall, within 7 working days after being aware that an employee has contracted an occupational disease, report the disease in the prescribed manner to the Director General (S. 35 (3))

19


Obligations

Particulars in Support of a Claim (S. 37)

• An employer shall within 7 working days after receiving a claim, medical report or other documents or information concerning the claim, send the claim report, documents or information to the Director General (S.37 (2))

20


Obligations

Employers Should Register with the Director General (S. 71)

• Employers should, within the prescribed period, & in the prescribed form register to the Director General & furnish (S. 71 (1)):

(a) The prescribed particulars of the business

(b) Any additional particulars as may be required

• Failure to comply with the requirement attract, on conviction, a fine not exceeding TZS 50 million or imprisonment for a term not exceeding 5 years or to both (S. 71 (4))

•

21


Obligations

Employers Should Keep Records (S. 72)

• Employers should keep records of the earnings & other prescribed particulars of his employees & shall, at all reasonable times, produce the register or record on demand to an authorized person for inspection (S72(1))

• An employer who fails to comply commits an offence & shall, on conviction, be liable for a fine not exceeding TZS 20 million or imprisonment for a term not exceeding 5 years or to both (S. 72 (3))

22


Obligations

Employers Should Furnish Returns of Earnings (S. 73)

• An employer shall, not later than the 31/03 in each year furnish the Director General with a return in the prescribed form certified by the employer, showing (S.73 (1)):

Earnings paid by the employer during the period with effect from the 01/03 of the immediately preceding year up to & including the last day of Feb. of the following year

Such further information as the Director General may require

23


Obligations

Employers Should Furnish Returns of Earnings (S. 73)

• An employer who starts business after the last day of Feb. of a particular year shall within 7 working days thereafter, furnish the Director General with certified return, showing the estimated earnings of employees with effect from the start date & including the last day of Feb. of the following year (S. 73 (2)

• Failure to comply with the requirement is an offence & shall on conviction be liable to a fine not exceeding TZS 20 million or to imprisonment for a term not exceeding 3 or to both (S.73 (7)

24


Obligations

Employers Should be Assessed to ascertain correct contributions (S. 74)

• An employer shall be assessed by the Director General according to a tariff calculated on percentage of annual earnings of employees (S. 74 (1))

• An assessment of an employer shall be paid at such time and in such manner as the Director General may determine (S. 74 (6))

• The Minister may, on the recommendation of the Board, prescribe a maximum amount of earnings on which assessment of employers shall base (S.74 (7))

25


Obligations

Employers Should Pay Assessment to the Director General (S.75)

• An assessment shall be paid by an employer within 30 working days after the date of the notice of assessment or, with the approval of the Director General, in such installments and at such times and on such conditions as he may determine (S. 75 (1))

26


Obligations

Employers or Trade Unions should Inform Employees of their Rights (S. 77)

• Every employer or a trade union shall display a statement of employee's rights under this Act in the prescribed manner (a) at the place where employees work (b) where it can be read by employees

Employers to Assist Employees on their rights & procedures to claim compensation (S. 78)

• An employer or relevant trade union shall notify any employee who is injured (or who contracts an occupational disease ) on his rights & procedures to be followed in order to claim compensation

27


Other Important Issues

Civil Liability of Employer and 3rd Party not Limited (S. 30 (1))

• Any civil liability of an employer or any other person resulting in the disablement or death of an employee is not limited or affected in any way if the injury or disease was caused by negligence, breach of statutory duty or any other wrongful act or omission of the employer, or any person for whose act or omission the employer is responsible, or of any other person

28



Prescription of Claim for Compensation (S.40)

• A right to compensation shall lapse if the accident (or Occupational disease) is not brought to the attention of the Director General within 12 months after the date of the accident (or Occupational disease)(S40 (1)/(2))

• The occurrence of an accident (or occupational disease) shall be deemed to be the date on which a medical practitioner diagnosed the disease for the 1st time & notified the employee of the diagnosis or such earlier date as the Director General may determine (S40 (3)

29



Increase of Monthly Pensions (S. 54)

• The Minister may, on the recommendation of the Board increase the monthly pensions payable under S. 48/S.52 by such percentage as he may determine (S.54 (1))

30

Rights and Obligations of Employees Under the Act

Rights

Right to Compensation for occupational injury (S. 19)

Accidents during conveyance to/from employee’s place of employment for purpose of employment by any means of conveyance shall be deemed to take place in course of employment & hence compensable (S.20)

Accidents during training for or performance of emergency services are deemed to have arisen out of & in course of employment & hence compensable (S. 21)

Compensation for Occupational Diseases (S. 22)

Accidents/ Diseases Contracted Outside Tanzania are payable under some conditions(S. 24)

31


Rights

Accidents/Diseases Contracted in Tanzania (TZ) are payable under some conditions (S.25)

Compensation may not be alienated or Reduced (S. 27); Cession or Relinquishing of Compensation void (S. 28); Compensation May Not Form Part of Deceased Employee’s Estate (S.29)

Threats and Compulsion Prohibited (S.32)

Appeal Against Decisions of the Director General & the Minister (S. 80)

Reasons for Decisions to be availed (S. 88)

Access to information/documents (claims, accidents, injury, occupational disease (S.91)

32


Obligations

Notice of Accident by Employee to Employee (S. 33 (1))

Employee to Submit to Medical Examination (S. 38)

Claim for Compensation to be lodged within 12 months (S. 39)

33



Right to Compensation for Occupational Injury (S. 19)

• As per S.19 (2), where an accident is attributable to the serious or willful misconduct of the employee, no compensation shall be payable unless:

(i) The accident results in Permanent Total

Disablement

(ii) The employee dies as a result of the accident

leaving a dependant wholly financially

dependent upon the employee 34

Stakeholders Expectations

• Employees (& beneficiaries) will get their deserved rights for employment-related injuries/disease

• Fund’s efficiency (Management & delivery of quality service)

• The Fund to work with other stakeholders, including OSHA & Govt, to significantly reduce incidences of injuries & diseases at workplaces

• Productivity at workplaces will increase

• Improvements in productivity will have significant impact in the growth of country’s economy

35

Fund Expectations

Continue getting cooperation from stakeholders in order to achieve its statutory obligations

All employers to contribute to the Fund in line with the requirements of the Act & to play their role in terms of the requirements of the Act

Government & SSRA will continue to offer their support which is important for the Fund to be able to fully perform its functions

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Thank You for Listening

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