MVR 1.4M in compensation for death of employee due to negligence

Labor Relations Authority (LRA) has introduced a regulation that mandates an employer to pay over MVR 1.4 million in compensation for the inheritors of an employee who lost their life in the workplace due to the negligence of the employer.

As per the Regulation on Safety and Health at the Work Environment, an employee or their inheritors will be eligible for compensation if an employee sustains an injury, suffers a permanent or temporary disability or loses their life in the workplace or due to the nature of the work.

In this regard, in case of an injury, the employer must bear all medical expenses, give paid leave for days unable to attend to work due to the injury and compensate for permanent or temporary disability suffered as a result of the injury.

In case of death, the employee’s inheritors must be compensated.

The extent of the employer’s negligence, the employee’s age and salary will be considered when awarding the compensation. The regulation specifies MVR 1.46 million as the minimum amount for compensation and MVR 15.4 million as the maximum amount for compensation.

If the employer died as a result of an incident that is not considered negligence of any party, the inheritors must be awarded MVR 50,000 in compensation.

Employees suffering a permanent disability in the workplace must be compensated by a maximum amount of MVR 19 million. While the minimum amount is set at MVR 1 million – the age of the employee, the extent of their disability and other factors will be considered when awarding the compensation.