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14 Module 1: History and Philosophy of Loss Control Loss Control Management (LCM)
It was extremely difficult to obtain an adequate settlement since common law gave injured
workers very little chance for compensation due to:
1. injured worker will usually hesitate to put his job in jeopardy by suing his employer;
2. does not have much chance to prove his case in court;
3. out of court settlement proved to be more beneficial on the part of the worker than legal
action.
Workmen’s compensation legislation, in contrast with the old employer’s liability law, eliminates
the problem of determining whose fault caused the injury. Under workmen’s compensation, the employer
is held liable not on the basis of his fault or negligence, but on the basis of social policy. With the advent
of compensation laws, concerned employers had to assume a substantial part of the financial cost of
injuries. Employers started shifting their obligation for actual compensation payments to insurance
organizations, either state or privately operated.
Milestones
• Compensation Act - England 1897
• Compensation Law - U.S. 1911
• Workmen’s Compensation Act - Canada 1915
• U.S. Congress Passed the Occupational Safety and Health Act of 1970
Philippine Occupational Safety and Health
Standards
The Occupational Safety and Health Standards was
formulated in 1978 in compliance with the constitutional mandate
to safeguard the worker’s social and economic well-being as well
as his physical safety and health. Adopted through the tested
democratic machinery of tripartism, the 1978 Standards is
considered as a landmark in Philippine labor and social legislation.
The Occupational Safety and Health Standards is a set of
mandatory OSH standards which codifies all safety orders being
enforced prior to its promulgation. It contains administrative
requirements, general safety and health rules, technical safety
regulations, and other measures to eliminate or reduce OSH hazards in the workplace.
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