What is the basis of workers' compensation?

The basis of workers' compensation is rooted in a historic trade-off of rights that balances the interests of both workers and employers. This system was established to provide a no-fault way for workers to receive compensation for injuries or illnesses that occur as a result of their employment, regardless of who was at fault for the incident.

The fundamental idea is that, in exchange for this guaranteed compensation, workers give up their right to sue their employers for negligence in most cases. This trade-off not only secures timely and predictable compensation for injured workers but also protects employers from potentially costly lawsuits that could arise from workplace incidents.

This system aims to provide a safety net for workers while also ensuring that businesses can operate without the constant fear of litigation. Therefore, this historic trade-off is a cornerstone of the workers' compensation framework in many jurisdictions, including Canada, where it aims to promote workplace safety and efficiency.

Other options do not capture this essential balance of rights and responsibilities in the context of workers’ compensation. For instance, employment contracts can contain various clauses, but they do not specifically define the principle behind workers’ compensation. Government grants for injured workers may provide additional support but are not the foundational basis of the workers' compensation system itself. Similarly, the ability to