Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

Article 5 of the Convention. In reply to the Committee's previous comments, the Government indicates that the question of the possibility of paying compensation to injured workers or their dependants in the form of a pension was carefully considered by the present Executive Council of the Falkland Islands, which decided that there should be no change in the present position. It considers that, in view of the very small number of potential beneficiaries and the administrative burden which would be created by such a scheme, there is no reason, in Falklands circumstances, to change from the present situation of paying lump-sum compensation in respect of permanent disablement or death of workers. In any event, given that the Convention permits compensation to be wholly paid in a lump sum if the competent authority is satisfied that it would be properly utilized, the Government is of the opinion that it is highly unlikely, given the sophistication of the local people with regard to the investment of money, that the situation would arise whereby the competent authority would not be satisfied that the lump-sum compensation would be properly utilized.

The Committee notes this information and, in particular, the administrative difficulties and the special local circumstances to which the Government has been referring for many years. It further notes that, according to the Government's report, during the period covered by it there were only two reported cases of injuries causing minor partial permanent disablement in respect of which a total of 66,422.53 has been paid. In view of the very small number of potential cases which might in the future require compensation under Article 5 of the Convention, the Committee once again expresses the hope that the Government will be able to take all necessary measures to ensure that, in all cases, compensation in the event of permanent injury or death is paid, as a rule, in the form of periodical payments and may be converted into a lump sum only where the competent authority is satisfied that the lump sum will be properly utilized, in conformity with this basic provision of the Convention. The Committee hopes that the Government will not fail to indicate in its next report any progress made in this respect and will continue to supply information on the number of cases and the form and amounts of compensation paid under the Convention.