The concept of having a compensation law for employees began with the highly developed industrial societies as a result of the efforts done by the employee trade unions. Workers needed the law in order to have some sense of security in their place of employment not to mention better working environments. Employers can also gain something because the law protects them from workers who might pursue charges against them. For resources on victorian workcover check out this site.
There are times when companies resort to applying compensation agreements but the compensation law can be a costly addition to operations especially when companies have no idea of its elements. There is no need for excessive spending on the part of employers to sustain the benefits that their workers are provided with. The employers should only address the lawful claims made by their employees and nothing more for this to work.