Effects of the Implementation of the Employees’ Compensation Act in Federal Inland Revenue Service (FIRS) Abuja, Nigeria

Cite this article as: Dance, A.M., Amehojo, D. & Sani, S. (2023). Effects of the Implementation of the Employees’ Compensation Act in Federal Inland Revenue Service (FIRS) Abuja, Nigeria. Zamfara International Journal of Humanities, (2)3, 19-30. www.doi.org/10.36349/zamijoh.2023.v02i03.003.

Effects of the Implementation of the Employees’ Compensation Act in Federal Inland Revenue Service (FIRS) Abuja, Nigeria

BY

DANCE, Ayuba Maikasuwa
Department of Public Administration
Nasarawa State University, Keffi
E-mail: amdance4u@yahoo.com
GSM: 08036328232

And

AMEHOJO Daniel
amdan59@gmail.com
Department of Public Administration,
Nasarawa State University, Keffi  
08065538837

And

SANI Suleiman
Department of Public Administration
Nasarawa State University, Keffi

E-mail: suleimansani35@gmail.com
GSM: 08034589568 

Abstract

This study examines the effect of implementing the Employees' Compensation Act in the Federal Inland Revenue Service (FIRS) located in Abuja, Nigeria. The study assesses how the implementation of this Act affects the well-being of workers within the FIRS in Abuja. A total of 399 employees from the FIRS in Abuja participated in the survey. The findings of the study indicate that the respondents lack awareness regarding the compensation act within the FIRS. Additionally, the majority of the respondents expressed disagreement with the adequacy of compensation for FIRS employees who experience work-related disabilities. On the other hand, most respondents agreed that employees suffering from work-related mental stress are adequately compensated within the FIRS. One of the recommendations put forth is for the FIRS to establish effective communication strategies to ensure that all employees have a clear understanding of their rights and the compensation provisions available to them in cases of work-related disabilities. Achieving this objective could involve organizing regular workshops, training sessions, and informative campaigns.

Keywords: Compensation, Employer; Employee Compensation Act and Implementation

Introduction

Ensuring a fair and equitable society in Nigeria involves giving utmost importance to the welfare and safety of employees in their workplaces. To address this concern, the Nigerian government introduced the Employees' Compensation Act (ECA), which offers extensive coverage and assistance to workers in cases of injuries, disabilities, or fatalities resulting from work-related incidents. The primary objective of this legislation is to establish a strong compensation framework that safeguards the well-being of employees and fosters the cultivation of secure work environments throughout the nation.

The Employee’s Compensation Act 2010 ("The Act), which repeals the Workmen’s Compensation Act, Cap. W6 Laws of the Federation of Nigeria, 2004, is designed for an open and fair system of guaranteed and adequate comprehensive provisions for payment of compensation to employees who suffer from occupational diseases or sustain injuries arising from accidents at the workplace or in the course of employment.

The Act applies to all employers and employees in the public and private sectors in the Federal Republic of Nigeria [Section 2 (1)]. It however excludes any member of the armed forces of the Federal Republic of Nigeria [Section 2 (3)].

Although the Act is made up of several parts, this study is focused on Part 3, which is compensation for death, injury, or disease and mental stress. According to the Act, any employee, whether or not in a workplace, who suffers any disabling injury arising out of or in the course of employment, shall be entitled to compensation.

Based on the existing evidence, there is still a considerable journey ahead in the fight for the enforcement of the Act and ensuring adherence to both national and international labour standards. The labour standard states that if an employee experiences a non-traumatic disability related to their employment under this Act, they are entitled to compensation. The lack of implementation of the Act is worsened by the government's unwillingness to safeguard its citizen workers from exploitation by economic operators who prioritize accumulating surplus value over the well-being of workers.

In many parts of the world, once a bill is approved and becomes a law, its effects are immediately evident, and the implementation is eventually felt by all relevant parties. However, the case in Nigeria, as pointed out by Abolo (2013), is somewhat different. The impact of laws is not easily noticeable unless they affect the political class or the wealthy in society. Since the passage of the Employees' Compensation Amendment Act 2010 and the official launch of the scheme on July 11, 2011, the Nigerian Social Insurance Trust Fund (NSITF), the agency responsible for managing the compensation fund in Nigeria, has been largely inactive.

As Aibieyi (2009) argues, any policy that is formulated but not fully implemented is not only useless but also lacks significant value. Therefore, it is crucial to evaluate the level of implementation of the Employees' Compensation Act (ECA) to determine if it has produced the desired results or effects on society. The success or failure of any policy depends on the effective implementation of its programs (Aibieyi, 2009). Regardless of how well-intentioned a policy or scheme is, its success or failure hinges on its implementation. Anderson (1975) asserts that a policy's evaluation is based on the documented success of its implementation.

To assess the success of the 2010 Employees' Compensation Act under the Federal Inland Revenue Service (FIRS), it is necessary to examine its implementation, prospects, and achievements thus far. The enactment of the Employees' Compensation Amendment Act 2010 was expected to bring relief to Nigeria's workforce, particularly in FIRS, by simplifying the process of obtaining compensation for workplace injuries. However, in a country like Nigeria with a history of inactive policies and unimplemented ideas, the initial enthusiasm surrounding the new law seems to have waned. Issues related to the Act are no longer widely discussed, and the average FIRS employee does not see the Act being put into action. Instances of workplace injuries without proper compensation are still prevalent.

Nigeria has never lacked policies from its inception to the present day. However, it must be emphasized that the country has a track record of enacting excellent laws without following through on their implementation (Adewunmi, 2016).

The average Nigerian worker's awareness of the Employee Compensation Scheme, as noted by Eroke and Oyedele (2013), is very low. Most workers are unaware of the scheme and their rights to access it, and this applies to FIRS employees as well.

The Employee Compensation Act aims to establish an equitable and transparent system that guarantees comprehensive provisions for compensating employees who suffer from occupational diseases or sustain injuries at the workplace. However, the situation in FIRS seems to be somewhat different. Therefore, it is crucial to determine the implementation level of FIRS after the proactive step taken by NSITF in engaging employers of labour in dialogue and working closely with the Nigerian Employers Consultative Association to facilitate organization registration and inform employees about the scheme and its benefits to them.

It is against this backdrop that this study aims to evaluate the impact of the implementation of the Employees' Compensation Act on FIRS workers. Previous research has attempted to identify a "pay for performance" relationship in executive compensation but found a weak connection with performance measures. However, inadequate compensation and benefits can lead to low employee performance, reduced job satisfaction, increased absenteeism, and decreased organizational output. Poor management and implementation of compensation and benefits can diminish employee motivation to work harder. Compensation is crucial for employee performance, encompassing all the external rewards employees receive in exchange for their work. In any organization with low employee satisfaction, intentional turnover is likely to occur. High employee turnover has negative effects on the organization's economy and social processes, diminishing profitability and productivity.

The main objective of this study is to evaluate the implementation of the Employee Compensation Act in Federal Inland Revenue Service (FIRS) Abuja, while the specific objectives are to:

i.        Ascertain whether employees in FIRS are all aware of the compensation act.

ii.      Ascertain whether the employees of FIRS who suffer work-related disability are adequately compensated.

iii.    Examine how employees who suffered work mental stress are being compensated in FIRS as provided in the Compensation Act

Conceptual Issues

Concept of Compensation

According to Bowman (2006), compensation management can be defined as all the employers’ available tools that may be used to attract, retain, motivate, and satisfy employees. This encompasses every single investment that an organisation makes in its people and everything its employees value in the employment relationship. Simply, the notion of compensation management just says that there is more to rewarding people than throwing money at them, or, as Mulis and Watson put it in Armstrong (2008), "the monetary value in the compensation package still matters, but they are not the only factor". They also stress that compensation policies are based on "building a much deeper understanding of the employee agenda across all elements of reward". The compensation management process was summed up by Work Force (2008) as follows: Creating a fun, challenging, and empowering work environment in which individuals can use their abilities to do meaningful jobs for which they are shown appreciation is likely to be a more certain way to enhance motivation and performance, even though creating such an environment may be more difficult and take more time than merely turning the reward lever.

A major strength of the 2010 Employees Compensation Act, which was signed into law in 2011, is the aspect that states that compensation should be paid to an employee for life, if injured or deceased, or to the dependents of the deceased, notwithstanding that the employer might have made contributions in respect of that worker for only one year. This is one aspect of the Act NSITF should capitalise on to sell its products to Nigerian employees and employers, as this part of the Act is very humane. This aspect of the Act equally recognises that some Nigerian employers might not take the scheme seriously, hence the worker's protection. Cases have been heard of the families of workers not getting the benefits when the employees are late. The Employees Compensation Act (2011) makes adequate provision for the families of the deceased. These provisions will give some respite in the face of the harsh economic conditions we find ourselves in in Nigeria.

An area of concern is the ambiguity of the Employees Compensation Amendment Act (2011), which did not state when contributions are required to be remitted under the Act; the Act did not spell out clearly whether it is monthly or on the 1st of January of every year. Humans being what we are, we will likely look for excuses to evade the remittance for their employees, since the law does not specify when such should be remitted. This may also have affected the smooth management of the scheme as funds meant for it were not remitted.

Compensation for Disabilities

Permanent total and partial disabilities

Where an employee suffers some injuries leading to a permanent total disability, the Board shall pay the employee a monthly payment equal to 90 per cent of the employee's remuneration (Section 21(1) of the Act). Similarly, if the disability is permanent or partial, depending however on the degree of injury and the extent of impairment of any capacity of the injured employee, the Board shall pay to the employee a periodic payment equal to 90 per cent of an estimated loss of remuneration resulting from the impairment (Section 25(1) and (2) of the Act). The compensation for this purpose is calculated by the second schedule of the Act.

It must be noted that the employee’s compensation is limited to 90 percent means that the employee is also made to share in the cost of the injury beyond the physical disability and pain. The basis for sharing this cost is not known. This raises the issue of equity in this regard. Can this be said to be in accord with providing for an open and fair system of guaranteed and adequate compensation for disabling injuries to an employee being propagated by the Act? The answer, submitted with humility, is no.

Temporary total and temporary partial disabilities

Payment in these cases is a lump sum by the second schedule of the Act or any regulation the Board may make in respect of the schedule. It must be noted that payment shall not be made in these cases for any disability that lasts for more than 12 months (Sections 23(a) and (b) of the Act).

Compensation for injuries resulting from disabilities under the Act is made to the employee, but only if the employee is (Section 23(a) and (b) of the Act):

a.       less than 55 years of age on the date of the injury,

b.      55 years of age or older on the date of the injury.

Where the employee is less than 55 years of age, such payment would continue until the employee reaches 55 years of age or the board is satisfied that the employee would retire after attaining that age, or the date the employee would retire after attaining that age. Where the employee is 55 years of age or older on the date of the injury, the payment would be discontinued 2 years after the date of the injury if the board is satisfied that the employee would retire after the 2 years or on such later date as the board may determine.

The duration of payment is limited by the employee’s age at 55 and not based on the statutory retirement age for employees in the employment where the injured employee works lacks any acceptable justification. Different occupations have different retirement ages. It is hoped that the board will consider this before discontinuing any payment to an injured employee, as the case may be.

It must be noted that the Act, apart from the departure from the lump sum payment system to regular monthly payment and the provision of medical care, has gone further to provide for vocational rehabilitation, medical transport, and attendant care. These are developments that bring the law on injury compensation into compliance with the ILO standards (see ILO C121 Articles 9–12).

Compensation for Mental Stress

Compensation for mental stress can vary depending on the jurisdiction, the specific circumstances, and the applicable laws and regulations. In FIRS, compensation for mental stress or psychological injuries is available under certain conditions.

In FIRS, workers' compensation laws or employment regulations may provide compensation for mental stress or psychological injuries arising from work-related incidents. These incidents could include workplace accidents, harassment, discrimination, or other traumatic events. In such cases, the affected individual may be entitled to benefits such as medical expenses, counselling or therapy costs, loss of income, and, in some instances, compensation for pain and suffering. To pursue a compensation claim, it is usually necessary to demonstrate that the mental stress or psychological injury was directly caused by the work-related incident and that it resulted in significant harm or impairment. This often requires medical evidence from qualified professionals, such as psychiatrists or psychologists, to support the claim.

Section 8 of the Act makes compensation payable for mental stress arising from an acute reaction to a sudden and unexpected traumatic event or a mental or physical condition arising out of or in the course of employment (Section 8(1) of the Act). Compensation for mental stress includes mental stress caused by a change of work, the working conditions, or the organisation of work in such a way as to unfairly exceed the workability and capacity of the employee by his employer (Section 8(2) of the Act). To avoid any disagreement that may arise in respect of any claims for mental stress arising in these circumstances, the Act empowers the Board to appoint a Medical Board of Enquiry to ascertain the mental conditions of the employee, as the case may be (Section 8(3) of the Act).

The inclusion of compensation for mental stress arising from changes in working conditions is important because the employer is under a duty to take reasonable care of the employee. It also buttresses the duty of mutual respect and cooperation in employment relations. The general requirement that the conditions of work are just and humane cannot be satisfied where the psychological needs and other challenges of the employee are ignored by the employer in decision-making and the implementation of such decisions. Compensation for mental stress and other injuries arising from the employer's disregard of this duty becomes necessary and desirable if human dignity at work must be respected and sustained. It is also a safer way of implementing health and safety standards in employment relations, as emphasised by the National Employment Policy.

This is a welcome development that, it is hoped, will be given judicial backing through the implied duties doctrine in employer-employee relations. We need not wait for actual injury to claim compensation. Prevention is better than cure. The duty in this regard can be forced through pre-emptive actions and the award of damages, as the case may be.

Stress occurs when employees are not able to meet deadlines when there is excessive work and the time available to complete the work is limited, and for other reasons. Employee well-being is related to the health and wellness of the employee. It is the employer’s responsibility to create a work environment that promotes employee well-being. Physiological well-being leads to mental well-being, and together they help individuals achieve work-life balance. If the employee is satisfied and happy with the organisation, he or she is committed to it and can easily balance their work and personal life. The most widely studied workplace stressors are lack of organisational support, work overload, stressors, and non-standard work hours (including long work hours), (Shagvaliyeva & Yazdanifard, 2014).

Challenges of Implementation

From independence till date, Nigeria, as a nation, has never lacked in policies. Instead, it must be stated here that Nigeria, as a country, has records of enacting wonderful laws, but the problem has been a lack of implementation Abubakar (2015).

Take the first attempt to provide legislation to handle compensation in Nigeria in 1941, when the colonial authorities enacted the Workers Compensation Act No. 51 of 1941. That Act failed because it made provisions for the payment of compensation to a worker who sustained injuries at work or to his dependents if the injury resulted in death (Obi 1995).

According to Abubakar (2015), the Managing Director of NSITF, they have been able to register 25,076 employers of labour as of January 2015. According to Abubakar (2015), the major challenge faced by the organisations is that of accessing the organisations that ought to register with NSITF. The employers of labour presently registered are a far cry from the number of organisations registered in Nigeria. This may reduce the level of compliance by stakeholders and drastically affect the employee who is at the receiving end of the table. Getting employers into the scheme has continued to be a challenge due to the failures of similar schemes in the past. To achieve this fate, NSITF has taken a proactive step by engaging employers of labour in dialogue while working closely with the Nigerian Employers Consultative Association to help organisations register. But this step seems like too little effort in tackling this problem.

Omoro & Okaka (2016) examined the implementation of the Compensation Act in the Delta State civil service, like many other acts that have come before it, to determine the level of implementation. The study finds the various challenges that militate against the effective implementation of the Act. In the survey, 227 workers from both the private and public sectors were selected. The study revealed that over 58% of the respondents were not aware of the existence of employee compensation. They, therefore, recommended that NSITF, the body saddled with the responsibility to manage the funds, should start to implement the Act immediately by updating their records and carrying out public education campaigns to employees and employers in both the private and public sectors while paying compensation benefits to injured workers.

Awareness of the Employee Compensation Act

The awareness level of the average Nigerian worker about the existence of the employee compensation scheme is very low. Most workers are not aware of the scheme and their rights to access it. This may explain why some foreigners continue to abuse Nigerian workers on their soil. For fear of intimidation, some employees are always afraid to report cases of injuries in the workplace. In a recent survey by these researchers, the issues of non-awareness of this law were highlighted by a majority of the respondents.

Withholding of information by organisations can be a source of challenge for NSITF, as most organisations are not willing to report cases of accidents and injuries that occur on their premises. Most organisations in Nigeria are more interested in the reputation of their corporate status than staff welfare. This can be deduced from the comment of Abolo (2005), who said that as soon as an accident occurs in the case of transport lines in Nigeria, the first step taken by the management of the companies is to hide their identities, either by covering their names or by immediately removing the vehicles involved in the accidents from the scene. With this type of culture, it becomes increasingly difficult, if not impossible, to assist affected workers.

Empirical Review

Spieler and Burton (2012), in their synthesis of the literature, seeking to explain the discrepancy between the number of people disabled due to work-related injuries or illnesses and the number of people who receive workers’ compensation benefits, cite the exclusion of categories of workers from coverage, the failure of individual workers to file, and barriers to approval and receipt of benefits. The procedural challenges faced by those injured or ill workers who file a claim, including higher standards of evidence introduced through workers’ compensation law amendments during the 1990s, reduce the success of claims. In other words, not only employer conditions but also increasingly restrictive rules for compensability in many state workers' compensation programmes have reduced benefit receipt.

Erin and Bronchetti (2012) undertook a comprehensive analysis of the elasticity of response of worker claims behaviour to higher workers’ compensation benefits using a 25-year time series of the Current Population Survey from 1977 to 2004 that yielded results contradicting Krueger (1990) and Butler (1994). They found that with additional controls, including levels of prior earnings, higher cash benefits for workers’ compensation were not found to be correlated with a higher incidence of receiving workers’ compensation. While the finding of no evidence of moral hazard behaviour on the part of workers is attributed to the additional controls, the difference in periods studied cannot be ruled out as a factor affecting the results. The more recent data may reflect changes in the extent of moral hazard behaviour of workers since the early 1980s due to changes in state workers’ compensation insurance programmes, terms of workers’ compensation insurance policies, and resultant incentives.

Azaroff, Levenstein and Wengman (2002) revealed that workers failed to report job-related injuries due to concern that filing a workers’ compensation claim would be considered an indicator of a worker’s insufficient attention to risks or a tendency to express grievances, which could inhibit career advancement.

Lakdawalla, Reville, & Seabury, (2007) concluded, based on data from the BLS National Longitudinal Survey of Youth, that because workplace environment and employer heterogeneity critically affect worker decisions about workers’ compensation claim filing, any efforts to increase the use of workers’ compensation would depend on influencing employers. Supplementing quantitative and qualitative inquiry with onsite research in the healthcare industry, Galizzi, Miesmaa, Punnett, and Slatin, (2010) observed that failure to file a claim is explained by time pressure and worker concerns about eligibility and adverse effects on reputation, and future earnings, and career advancement.

David, Alysha, and Steven (2014) conducted a study on Workers’ Compensation Insurance: A Primer for Public Health. The purpose of this document is to help public health researchers and practitioners, especially those in occupational safety and health, broaden their understanding of workers’ compensation insurance, relevant aspects of the insurance industry records, and the potential uses of that information for public health purposes. The economic and social burden of occupational injuries and illnesses can only be roughly estimated (Leigh and Marcin 2012; Leigh 2011). Uncertainties are due to many factors, including: (1) workers receive only a portion of regular wages through workers’ compensation; (2) occupational illnesses are frequently not compensated; (3) medical treatment costs for many occupational injuries are paid by other insurance; (4) insurance data are fragmented; and (5) data are protected for proprietary and personal identification purposes. No central repository for information on workers’ compensation claims exists in the U.S. Numerous standardised data coding systems are utilised for workers’ compensation claim information. Some of these were specifically developed and adopted within the workers’ compensation industry, while other coding systems, such as NAICS and the International Classification of Diseases (ICD), were developed for other purposes. Further standardisation of data elements and coding schemes, such as the universal adoption of ICD medical codes and ICD-E external cause of injury codes, would be beneficial. The states frequently require all employers, including those self-insured for workers’ compensation, to provide health and safety programmes for their establishments.

Oko and Obukovwo (2017) examined the implementation of the Compensation Act, like many other acts that have come before it, to determine the level of implementation. The study was set out to find the various challenges that may militate against the effective implementation of the Act. In the survey, 427 workers from both the private and public sectors were selected. The study revealed that over 58% of the respondents were not aware of the existence of employee compensation, while 76 said they had no confidence in the government's ability to manage the Act. The paper therefore recommends that NSITF, the body saddled with the responsibility to manage the funds, should start to implement the Act immediately by updating their records and carrying out public education campaigns to employees and employers in both the private and public sectors while paying compensation benefits to injured workers.

Muazu (2016) examines the Employees Compensation Act 2010 to ascertain the legal framework of employees' mental stress compensation in Nigeria and its contributions towards the protection of workers in discharging their duties. The ECA is legislation enacted by the government to address issues relating to the welfare and security of workers. The ECA contributes to the development of workers; its application gave birth to the Nigerian Social Insurance Trust Fund (NSITF) to enhance the management and maintenance of the worker's compensation fund. The paper observed that Employees’ Compensation faces some difficulties in terms of accessing their claims from the fund, which is a crucial process for workers. The paper adopted a doctrinal research methodology approach wherein relevant data obtained were analysed and the observations brought out. The findings of the paper are that the employees do not fully understand the purpose or benefit of the ECA and its objectives, and there is minimal compliance with the provisions of the ECA from employers at all levels, particularly on contribution to the fund.

Theoretical Framework

The expectancy theory of motivation was propounded by Victor Vroom. Vroom’s expectancy theory was an attempt to describe how an individual’s motivation contributes to achieving a particular goal or performance, while the target can be explained in terms of what outcome would become beneficial to the individual as a result of achieving that goal and what value is placed on that outcome (Banjoko, 2002). Vroom's theory is based on the belief that employee effort will lead to performance, and performance will lead to rewards (Vroom, 1964). Essentially, the expectancy theory argues that the strength of a tendency to act in a certain way depends on the strength of the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual (Robbins, 1989). According to Idemobi (2010), the Expectancy Theory is a process theory developed that concentrates on the outcomes. What Vroom explained in his theory is that to motivate employees or people, the effort put in by the employees, the performance generated, and motivation must be linked to one another.

The basic assumption of Vroom Expectancy Theory

i.        It assumes that behaviour is determined by a combination of forces in the individual and the environment.

ii.      It assumes that people make decisions about their behaviour in organisations.

iii.    It is assumed that different people have different types of needs, desires, and goals.

iv.    It assumes that people make choices from among alternative plans of behaviour, based on their perceptions of the extent to which a given behaviour will lead to desired outcomes.

Relevance of Vroom Expectancy Theory to the Study

According to Vroom, employee expectations can affect an individual’s motivation. Therefore, the amount of effort employees exert on a specific task depends on their expectations of the outcome. According to Robbins (1989), the expectancy theory includes three variables or relationships: attractiveness, performance-reward linkage, and effort-performance linkage. Attractiveness explains the importance that an individual places on the potential outcome or reward that can be achieved on the job. This considers the unsatisfied needs of the individual. Performance-reward linkage is the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome.

The effort-performance linkage explains the perceived probability by the individual that exerting a given amount of effort will lead to performance. These three factors, according to Vroom, combine and create a "force" that stimulates or motivates an individual to put in the effort to achieve a level of performance and then obtain end rewards. He suggested that "force" or "effort" was a result of the multiples of "expectancy" and "valence" (encompassing instrumentality) in the formula, Force = Expectancy, Valence: F = f (E * V). This formula can be used to indicate and predict things such as job satisfaction, occupational choice, the likelihood of staying in a job, and the effort that one might expend at work. This type of theory distinguishes between the most and the least motivated employees (Redmond, 2009). Expectancy describes the belief of a person that his or her effort (E) will result in the attainment of desired performance (P) goals. Instrumentally: P = R: the belief of a person that he or she will receive a reward if the performance (P) expectation is met. Valance is then the value of the reward according to the person (is the reward attractive to the person)?

The theory is useful in understanding the behaviour of people in any work situation. This is because employees seem to weigh alternatives and act based on how they value them. Equally, there is more to behaviour than can be predicted by a rational decision model. Thus, expectancy theory becomes the best for our understanding of workers' motivation and behaviour if viewed as a part of the explanation of work motivation and behaviour that influence the performance and job satisfaction of employees in any work situation. The effectiveness of the expectancy theory from a managerial perspective relies on the manager making assumptions about the motivational force of the reward for the employee (s) Thus, the use of rewards needs to obey "the law of effect," where positively rewarded behaviours will have a tendency to augment in frequency, negatively or neutrally rewarded behaviours will tend to diminish in frequency, and the type of reinforcement and its timing will impact the frequency of the behaviour. Thus, a particular reward can fulfil multiple outcomes, consequently adding to the sum of the valences.

Methodology

The paper adopts documentary and survey methods. The documentary research method is the study of various documents, journals, government publications, and other written materials that are relevant and valid in the area of study by subjecting the various information to deductive reasoning to find answers to research questions, while deductive reasoning implies that the issues involved in the study are to be addressed through the collection of relevant information, scrutinised, analysed, and interpreted to the text's meaning before conclusions are reached.

The study relied on acceptable quality control criteria in analysing documents. As cited in Abdulkadir (2015), these include authenticity, credibility, representativeness, and meaning. Authenticity refers to the reliability of the materials and sources of information described on the materials as well as their relevance to the study and their validity to the body of facts available. Credibility, on the other hand, indicates that the evidence can stand the test of time as to its sources, the passage of time, the transformation of the record over time, and its interpretation by others over some time, especially when the documents are from government sources, as is the case with this study. The concept of representativeness, however, refers to whether the documents available at the disposal of the researcher represent the totality of the documents needed to find answers to the research problem. Once the evidence is inconclusive based on the facts on the ground, the credibility of the study will certainly be in question. The last issue pertains to meaning. The concept tries to establish the facts that all necessary information on the documents is clear, understandable, logical, straightforward, and comprehensive enough to guide the research in arriving at an acceptable conclusion at the end of the study. This study attempts to evaluate the implementation of the Employees Compensation Act on worker welfare in the Federal Inland Revenue Service (FIRS).

The population of this study is derived from the Federal Inland Revenue Service Headquarters, Abuja, as at the time of this study, according to the records from FIRS, the staff strength is 3,200

In determining the sample size of the study, the researcher drew the population from the entire beneficiaries of the Employee Compensation Acts (ECA) in the selected department ICT, procurement, modernization, planning, reporting and statistics and learning and development of the establishment. The population of 3,200 beneficiaries was considered rather large; hence a sample size of 399 was used for this study. Out of the 399 sample size, the study retrieves 225 questionnaires for its analysis

Discussion of Results

1.      Are the employees in FIRS all aware of the compensation act

Table 1: The respondents were asked if they were aware of the existence of the Employees’ Compensation Act 2011. The responses of the respondents are presented below in Table

Variable	Frequency	Percentage (%)
Strongly Agree	36	16
Agree	68	30.2
Strongly Disagree	34	15.1
Disagree	82	36.4
Undecided	5	2.2
Total	225	100

Source: Field survey, 2023

The respondents were asked to state whether employees are aware of the existence of the Employee Compensation Act in FIRS, the data obtained revealed that 36 (16%) of the respondents strongly agreed, 68 representing (30.2%) of the respondents agreed while 34 representing (15.1%) of the respondents strongly disagreed, 82 representing (36.4%) of the respondents disagreed and 5 representing (2.2%) of the respondents were undecided.

 

Table 2: Distribution of Respondents on whether the employees have confidence in the Compensation Scheme Operated by NSITF

Variable	Frequency	Percentage (%)
Strongly Agree	33	14.6
Agree	56	24.8
Strongly Disagree	48	21.3
Disagree	74	32.8
Undecided	14	6.2
Total	225	100

Source: Field survey, 2023

Responses’ on whether the employees have confidence in the Compensation Scheme Operated by NSITF revealed that 33 representing (14.6%) of the respondents strongly agreed, 56 representing (24.8%) of the respondents agreed while 48 representing (21.3%) of the respondents strongly disagreed, 74 representing (32.8%) of the respondents disagreed and 14 representing (6.2%) of the respondents were undecided.

The employees of FIRS who suffer work-related disability are adequately compensated

Table 3: Employees of FIRS who suffer work-related disability adequately compensated

Variable	Frequency	Percentage (%)
Strongly Agree	30	13.3
Agree	55	24.4
Strongly Disagree	48	21.3
Disagree	80	35.5
Undecided	12	5.3
Total	225	100

Source: Field survey, 2023

The respondents were asked to state whether employees of FIRS who suffer from a work-related disability are adequately compensated 30 representing (13.3%) of respondents strongly agreed, 55 representing (24.4%) of the respondents agreed while 48 representing (21.3%) of the respondents strongly disagreed, 80 representing (35.5%) respondents disagreed and 12 representing (5.3%) of the respondents were undecided. The data presented in the table is a serious cause of concern for NSITF and FIRS as the majority of the workers (59%) disagreed employees of FIRS who suffer work-related disability are adequately compensated

 

Table 4: The FIRS Board pays the employee a monthly payment equal to 90 percent of the remuneration of the employee in compliance with (Section 21(1) of the Act)

Variable	Frequency	Percentage (%)
Strongly Agree	33	14.6
Agreed	55	24.4
Strongly Disagree	45	20
Disagree	75	33.3
Undecided	17	7.5
Total	225	100

Source: Field survey, 2023

 

The respondents were asked to state whether FIRS Board pays employees a monthly payment equal to 90 per cent of the remuneration of the employee in compliance with (Section 21(1) of the Act), the data obtained revealed that 33 representing (14.6%) of the respondents strongly agreed, 55 representing (24.4%) of the respondents agreed while 55 representing (20%) of the respondents strongly disagreed 75 representing (33.3%) of the respondents disagreed and 17 representing (7.5%) of the respondents were undecided.

Employees who suffered work-mental stress are being compensated in FIRS as provided in the Compensation Act

Table 5: Employees who suffered work mental stress are been compensated in FIRS

Variable	Frequency	Percentage (%)
Strongly Agree	46	20.4
Agree	67	29.8
Strongly Disagree	43	19.1
Disagree	57	25.3
Undecided	12	5.3
Total	225	100

Source: Field survey, 2023

The data obtained revealed that 46 representing (20.4%) of the respondents strongly agreed that employees who suffered work mental stress been compensated in FIRS, 67 representing (29.8%) of the respondents agreed while 43 representing (19.1%) of the respondents strongly disagreed, 57 representing (25.3%) of respondents disagreed and 12 representing (5.3%) of the respondents were undecided.

The Employees Compensation Act 2010 (ECA) is a welcome development. It will assist in protecting and safeguarding the rights, well-being, and morale of the workforce. It will eventually turn out to be of interest to the workers themselves, the employers, and the economy. The acts would also go a long way in breaching the gap in industrial relationships between labour groups and organisations.

Analysis and Results

The analysis and result of the data presented were carried out with the aid of answering the research objectives formulated for the study.

Objective one is to ascertain whether employees in FIRS are all aware of the compensation act, the data obtained and analysed in Table 1 revealed that the majority of the respondents are not aware of the compensation act within FIRS, hence Table 2 complemented the findings by revealing that even those that are aware do not have confidence in the compensation scheme operated by NSITF.

Objective two is to ascertain whether the employees of FIRS who suffer from a work-related disability are adequately compensated, the data obtained and analysed revealed that the majority of the respondents disagreed that employees of FIRS who suffer work-related disabilities are adequately compensated, hence Table 4 complemented the finding by revealing the majority of the respondents disagreed FIRS Board pays employee a monthly payment equal to 90 percent of the remuneration of the employee in compliance to (Section 21(1) of the Act).

Objective three is to examine how employees who suffered work-mental stress are being compensated in FIRS as provided in the Compensation Act, the data obtained in Table 5 revealed majority of the respondents agreed that employees who suffered work-mental stress are been compensated in FIRS.

Conclusion and Recommendations

Based on the findings, it can be concluded that there is a lack of awareness among the respondents regarding the compensation act within the Federal Inland Revenue Service(FIRS). This suggests that the employees may not be well-informed about the compensation options available to them in cases of work-related disabilities.

Furthermore, the majority of the respondents disagreed with the notion that employees of FIRS who suffer work-related disabilities are adequately compensated. This indicates a perceived gap or dissatisfaction with the current compensation practices within the organization.

Interestingly, the majority of the respondents agreed that employees who suffer from work-related mental stress are being compensated in FIRS. This suggests that there might be a better understanding or awareness of compensation provisions specifically related to mental stress or psychological well-being.

In conclusion, the findings highlight a need for increased awareness and information dissemination regarding the compensation act within FIRS. Additionally, efforts should be made to address the perceived inadequacy of compensation for work-related disabilities. This could help improve the overall satisfaction and well-being of employees within the organization.

Based on the findings the following recommendations are made:

i.        Increase Awareness: The FIRS should develop comprehensive communication strategies to ensure that all employees understand their rights and the compensation provisions available to them in case of work-related disabilities. This can be achieved through regular workshops, training sessions, and informative campaigns.

ii.      Improve Compensation for Work-Related Disabilities: FIRS should conduct a thorough assessment of its current compensation system, taking into account industry standards and best practices. By ensuring fair and adequate compensation for work-related disabilities, FIRS can enhance employee satisfaction, well-being, and overall morale.

iii.   Address Disparity in Mental Stress Compensation: FIRS should strive to ensure that all employees receive fair and appropriate compensation for work-related mental stress, with clear guidelines and support mechanisms in place.

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