A COMPARATIVE ASSESSMENT OF WORK INJURY COMPENSATION BETWEEN STATUTORY COMPENSATION AND COMMON LAW DAMAGES

Abstract

The construction industry has a reputation of being dirty, dangerous and demeaning. This concurs with the alarming number of cases of injuries and fatalities reported annually by the Ministry of Manpower (MOM). It is just and fair that employees injured in work accidents are able to seek a remedy, in terms of monetary compensation, whether in common law or the Work Injury Compensation Act (WICA). Generally, employees tend to sue the employer as they have an impression that common law provides a sum of compensation that fairly compensates the employee for his actual losses. However, they fail to take into consideration of the costs incurred in personal injury litigation. What may be more significant to the employee is the amount that he can get at the end of the process, and this refers to net compensation – compensation received less the costs of action. This study seeks to investigate whether common law or WICA provides a legal framework for fairer work injury compensation. A comparative assessment of work injury compensation was carried out using the case study approach. The details in the case Liu Haixiang v. China Construction (South Pacific) Development Co Pte Ltd [2009] SGHC 21 were analyzed so as to derive the net compensation in common law damages, as compared to a hypothetical situation if the plaintiff had claimed for compensation under WICA. However, a conclusion could not be drawn because of the lack of accurate information. The study is nevertheless significant as it presented WICA to readers who may not be aware of their statutory rights. It introduced the formulas of net compensation under common law and WICA, which could be used by injured employees in their selection of an avenue to seek compensation. Furthermore, the study highlighted the risk and uncertainties involved in seeking compensation in both avenues. The research findings are not only applicable to employees in the construction industry; it would likewise apply to all employees covered under the WICA.