¹City University Business School, London

Abstract

This paper begins by tracing the development of work injury compensation systems in Europe and discussing their rationale. It goes on to classify and compare compensation systems, exploring, in particular, the relationship between employers' liability and workers' compensation regimes. In doing so, it analyses the relationship between the legal bases of the various regimes, the security systems they employ and the incentives they create for workers, employers, insurers and others. After comparing European statistics for industrial injuries the paper considers the determinants of industrial safety and, in particular, how the operation of various work injury compensations systems affects accident levels. The paper then considers the impact that health and safety legislation set at European level has on workers, employers and other stakeholders in compensation systems, including insurers. It ends by considering the question of harmonization: is there any case for greater harmonization of work injury compensation systems at European level and, if it is considered desirable, is there any real prospect of such harmonization actually being brought about?