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Which Nation Was The First To Have Worker Compensation Laws?

Industry News
Image of a course picture, study guide, revision book, publication, icon or logo relating to an awarding body like NEBOSH, shown on the ACT Associates website.
Image of a course picture, study guide, revision book, publication, icon or logo relating to an awarding body like NEBOSH, shown on the ACT Associates website.
Image of a course picture, study guide, revision book, publication, icon or logo relating to an awarding body like NEBOSH, shown on the ACT Associates website.
Image of a course picture, study guide, revision book, publication, icon or logo relating to an awarding body like NEBOSH, shown on the ACT Associates website.

A major part of health and safety legislation, and by extension courses on occupational health, is the idea of incentives and disincentives for businesses to put the safety of their employees, contractors and the general public first.

These incentives, which are enshrined in both criminal and civil law, are in place to avoid a race-to-the-bottom situation for employers where the nature of competition encourages businesses to do only what they are required to and take unnecessary risks in the process.

These include criminal penalties for breaches in relevant health and safety legislation, which can result in fines for companies and potential prosecution of individuals if they are deemed to have been responsible through foreseeable action or inaction for death or serious injury, as well as civil proceedings.

The latter typically takes the form of workers’ compensation and the legally required Employers’ Liability insurance that helps businesses to pay for compensation in case of death or serious injury.

This foundational part of health and safety legislation was the turning point where the help of workers began to be prioritised more, but its origins were unusual and somewhat opportunistic.

A Spectre Haunting Europe

Once the nation of Prussia became the German Empire in 1871, Chancellor Otto Von Bismarck was deeply concerned by the Industrial Revolution, but instead of focusing on the concerns for health and safety directly, as was the impetus of the various Factory Acts in Great Britain, his focus was more opportunistic.

The welfare of the working class was based on an assumption that if Prussia (and later Germany) continued to rule with an openly iron fist, they could sow the seeds for revolution and revolutionary ideas.

His idea was to create a safety net for workers that resembled the 19th-century view of socialism as little as possible, which is why the concept of worker’s compensation was implemented before laws regarding working conditions, work hours and child labour.

This was meant to prevent young working-age people from leaving the country to work in the United States, as well as avoid a potential revolution, as had been seen many times in the 19th century.

Chancellor Bismarck’s solution to this was three insurance bills, seen as the least politically controversial option to help working people.

The Sickness Insurance Law of 1883 established a health service that helped pay the healthcare bills of industrial workers and a system of sick pay for up to 13 weeks but was a prelude to more concrete workers’ compensation laws the following year.

The Accident Insurance Law of 1884 was the centrepiece of Chancellor Von Bismarck’s plan and mandated that workers who were injured or made ill at work were paid 67 per cent of their previous earnings, or up to 100 per cent if they required constant care.

The final law was the Old Age and Disability Insurance Law of 1889, which established a pension system and system for supporting people who were permanently disabled, whether that was the result of a work-related accident or illness or not.

The experiment ultimately would spread throughout the world and rapidly expanded the rights of working people in ways that can be felt to this day.

 

If you’d like to build your health and safety knowledge further, our NEBOSH General Certificate course is a great place to start. It’s designed for anyone looking to develop practical skills and gain a respected qualification in workplace safety. To find out more, get in touch with the ACT team today.