Workers` Compensation and Unemployment Insurance


Workers`Compensation and Unemployment Insurance

Workers’compensation entails compensation that is payable to a worker thatincurs an injury or disease, during or arising from employment. Thistype of compensation is given to an employee in order to make anemployee not sue the employer for the injury incurred in course ofemployment as a result of negligence of the employer (Crews, 2010). On the other hand, unemployment insurance is compensation that ispayable to employees that have lost their employment (Crews, 2010).It is critical for employees that are applying for this kind ofbenefit to meet the eligibility requirements.

Employeesare usually motivated or encouraged to work by actions that are favorthem. For instance, in case there is negligence on the part of theemployer, an employee would be encouraged to work in an organizationin case an employer accepts the negligence and presents benefits toan employee. Such benefits indicate that an employee recognizes theimportance of an employee in handling organizational matters. In casean employer does not present benefits to an employee in such asituation, it would be difficult for an employee to become motivatedto work in the organization.

Sinceworkers’ compensation and unemployment insurance presents benefitsto an employee, an employee is likely to become motivated to workthrough these benefits. When a worker becomes injured and he is paidbenefits that result due to the injury incurred, he will beencouraged to work because the employer will be depicted as aconcerned party in the welfare of an employee (Crews, 2010). This isthe same case, when it comes to unemployment insurance. Therefore,workers’ compensation and unemployment insurance do not create adisincentive to work, but instead create an incentive to work.


Crews,T. B. (2010). Fundamentalsof insurance.Mason, OH: South-Western Cengage Learning.