Covid-19 and the Nigerian Employee Compensation Scheme (ECS) – Jennifer Ezediaro

Covid-19 and the Nigerian Employee Compensation Scheme (ECS)

Did it sneak up on us? Were we not ready? How could something so small have such an impact on our nation and the entire planet? The global economy has taken a big hit as businesses, schools, religious institutions and virtually every facet of life have witnessed a temporary halt. Lockdowns have been instituted in most of the countries affected by the Covid-19 pandemic as a proactive measure in combating the spread of the pandemic.  It is worrisome that no real solution has been found and the lockdown has become the last resort, at least until when or dare I say, ‘if’ a permanent solution is found. The situation has forced businesses to work remotely and thankfully technology has made that possible and seamless. However, some things cannot be solved with technology. For example, what happens if an Employee contracts the disease and such an Employee is required to be isolated in any of the isolation centers? How would an Employer deal with this loss of productivity?

If you are a “religious” follower of Taxaide’s Publications, as you should be, then you should be no stranger to the Employee Compensation Scheme (ECS). However, for the purpose of this article, I will introduce the scheme briefly. The ECS is a scheme regulated by the Nigeria Social Insurance Trust Fund with its power drawn from the ECS Act 2010. This Scheme provides compensation for Employees who have suffered from Disease, Injury, Disability or Death (“DIDD”) during the course of his/her employmentand forEmployers who are contributors to the scheme for any loss of productivity arising from Employees who have suffered from DIDD. In this article we are focusing on how an employer who has suffered loss of productivity from an Employee afflicted with a disease, the Covid-19 in particular can be compensated by the Scheme.

The Covid-19 is a disease and Employees are not immune to it. In a case where an Employer has an Employee who has contracted the Covid-19, the said Employer should be compensated by the scheme. To process claims under the Nigerian Employee Compensation Scheme, the following should be noted;

1.      Employees of Employers that are compliant with their contribution obligations under the Employer Compensation Act (ECA) are entitled to be compensated by the Nigerian Social Insurance Trust Fund (NSITF) in the event of disease, injury, disability or death (altogether “Compensable Event”).1

2.     The Compensable Event must have occurred in or arisen during the course of the Employee’s work for the Employer.

3.     An Employee should within 7 days of a Compensable Event other than death make a report to the Employer using the Medical Report for Accident/Occupational Disease form (ECS.MR01). The Medical Report Form must be certified by the Medical Practitioner who examined the Employee.

4.     The Employer should, within:

4.1 7 days of receiving the Medical Report Form, submit a copy of it to the National Council for Safety Health Department in the Federal Ministry of Labor and Employment;

4.2   21 days of receiving the Medical Report Form, submit the following with the Claims Department of the Regional NSITF office to wit, a:

4.2.1       copy of the Medical Report Form;

4.2.2     duly completed Notification of Accident/Occupational Disease/Death form, i.e.  ECS.CCF01 (Notification Report Form). The Notification Report Form must be duly signed by the Employer or its authorized personnel;

4.2.3     duly completed Claim for Compensation form, i.e. ECS.CCF02 (Compensation Form). The Compensation Form must be duly signed by the Employer and the Employee (or the Employee’s Dependent in the case for death);

4.2.4     duly completed Affidavit by Employee Confirming Accident/Occupation Disease, i.e.  ECS.CCF03 ((Employee Affidavit). The Employee Affidavit must be duly sworn to by the Employee before a Commissioner of Oaths.

Though it is an unwanted situation, a business must be seen as a going concern and therefore be realistic and prepared for any situation and to do this, information is key. Taxaide Professional Services Limited will continue to go above and beyond to provide its Clients with efficient solutions not limited to provision of useful and helpful information. #Covid-19GotNothingOnUs.

For more enquiries, please contact: Jennifer Ezediaro (j.ezediaro@localhost, +234 906 346 3140). NOTIFICATION.pdf CCF03 (AFFIDAVIT) FORM.pdf MR01 Medical Report.pdf Claim for Compensation (2).pdf

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