Article 142 Compensation for Occupational Injuries in UAE - An opportunity to boost the economic output !




By now most employers in the UAE will have completed the health insurance registration for their employees. They should also be aware of their responsibilities under UAE Article 142 - 153 to protect their employees.  Don't tell anyone but this has created a great opportunity for companies to build their competitive advantage by understanding their operational process and tracking where things are going wrong.  

The debate and the discussion around the implementation of the regulations has been interesting.  Some business has said that it is regulation intervening into a free market, it is a burden on business.  Others take the view the safe guard and the protection of employees is a positive. Inadvertently the protection of employees normally protects production and continuity across the business. 

Putting it into context whither employers are being altruistic the financial facts from the US would make this correct. Put bluntly businesses that have accidents and incidents which kill employees and damage machinery face bigger capital spending costs. They lose money and ground to their competitors. 

These facts can be ignored all the way until the accident happens or a production facility is closed. How do we know ? Because our clients tell us of the reduction in near misses and accidents they record after using our products. Prior to working with us 65% of our clients used excel to record occupational accidents and hazards. Twelve months after working with us they have reduced the damage to their business productivity: employee time off, product contamination and they have a strategic understanding of the built in risks to their business. 

In the USA the Department of Labour has estimated that employers pay almost $1 billion per week for direct workers' compensation costs alone. The costs of workplace injuries and illnesses include direct and indirect costs. This figure covers all sectors oil, gas, construction, manufacturing, food production, health care etc.  

This one billion covers the delay or the abandonment of product lines, production which are never fully accounted for as a cost to business. In the US alone $83.2 billion of food production is contaminated each year through human error. This is product harvested and halfway through production. 

Are Article 142 - 153 a limit to business? The framing of regulation and the actual implementation can have different results. The government have implemented changes which potentially can change economic output.  Those who take it as an opportunity to examine their internal business process will profit and succeed.

Lets Talk ! 

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