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 dependent) as a matter of right and the employer cannot resort to any legal defence. Amount paid as compensation is based on the salary of the employee (also on the number of his or her dependent in some jurisdictions) and is usually subject to a specified maximum.

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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