workers' compensation

  

Definition

Financial support system established under law to provide income, medical care, and rehabilitation to employees for illness, injury, or death arising out of, and in the course of, their employment whether or not the employee was at fault. These benefits are claimed by the employees (or their dependents) as a matter of right and the employer cannot resort to any legal defense. Amount paid as compensation is based on the salary of the employee (also on the number of his or her dependents in some jurisdictions) and is usually subject to a specified maximum. In most countries, this system is compulsory although agricultural and domestic workers are generally excluded. Also called workmen's compensation.

Use this term in a sentence

  • After Jake's injury on the job, workers' compensation provided him with the needed money to pay his bills while he was laid up, which was several months.

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  • My friend was injured on the job very badly and got workers' compensation after he hired a lawyer to litigate for him.

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  • When Joe injured his back at work and had to take time off, his workers' compensation helped to pay his bills.

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