Workers Compensation Exemption

Accidents can cause injuries which may result in both financial losses as well as injuries to workers in factories or at other workplaces like construction sites. In many countries employers are expected to have a workers compensation policy in place to compensate them for the financial losses as well as injuries they are suffering due to the accident which took place at the workplace. However, like all policies, there are certain exemptions available to the employer, wherein they may claim workers compensation exemption and avoid paying the injured employee or pay a significantly lower amount as compensation.

Most employment contracts make it mandatory for the employee to report to the workplace in a sober state , without consuming any alcohol, drugs or intoxicating substance as it affects the efficiency and productivity at the workplace. In case there is an accident, and the worker suffers from injuries which may also be fatal, the employer may insist that the worker undergo a test to check if the worker was under the influence of any intoxicating substance when the accident occurred. Using this intoxicating substance before reporting to the workplace was both a breach of contract and affected the judgment of the worker, resulting in the accident.

Though worker compensation laws make it mandatory to offer worker compensation for workplace accidents, there are certain exceptions like breach of contract as a result of which the employer may claim worker compensation exemption. However, in such cases, the onus lies on the employer to prove that the worker was intoxicated when the accident occurred. The worker may have to undergo medical tests to provide proof that the worker was at fault, evidence of traces of the intoxicating substance in the bloodstream of the worker will be needed by the employer, before refusing the worker compensation claim.

In some cases, the employer may claim workers compensation exemption if the accident occurred due to the carelessness or negligence of the worker, who did not follow the stipulated guidelines for safe operation at the workplace. Most workers are provided extensive training by their employer, especially when they are working in hazardous areas, where the risk of an accident is high. It is often mandatory to wear safety gear like helmets, goggles, safety vests and safety shoes at the workplace, and if a worker fails to wear these safety gear and suffers injuries caused by the accident, the worker compensation amount paid to the worker or his family in case of fatal accidents may be reduced significantly.