In a recent session, the House labour committee emphasized the pressing need for the establishment of a labour compensation fund by the government. The committee has reached out to the labour minister, seeking clarity on the ministry’s plans regarding the creation and legislative framework of a workers’ compensation insurance fund.
Edek deputy Elias Myrianthous, speaking after the session, conveyed that the committee is awaiting the government’s response and is exploring ways to support the promotion of this insurance fund. Myrianthous highlighted that a bill passed in 1989 already provided for the creation of such a fund, which would operate similarly to the fund for motor vehicle insurers. This fund compensates uninsured drivers in the event of accidents.
The absence of a labour compensation fund has left employees without employer’s liability insurance, or those whose insurers have gone bankrupt, without recourse in case of work accidents. This gap has led to significant social issues, as affected individuals are often not compensated despite favourable court rulings due to their employer’s financial constraints or insurer insolvency.
Myrianthous illustrated this problem with an example where an employee, disabled from a work accident and awarded compensation by the court, ultimately receives no payment. The financial burden then falls on the individual and their family, exacerbating their plight.
The establishment of a labour compensation fund would address these injustices and provide much-needed support to workers who suffer from workplace accidents. The business community and workers alike are keenly awaiting further developments as the government considers this vital social safety net.
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