A Foundation project to collect and analyse information in this area drew on an international study of economic incentive schemes. Some EU countries already have national systems that include built-in economic incentives to improve health and safety. The most common type operates through an insurance mechanism. Employers pay a premium to provide compensation for injured employees. The premium is adjusted on the basis of experience, so that employers with a poor record on health and safety pay more .
Good employers receive rebates or discounts on premiums.
This gives an incentive to improve working conditions. Countries that operate incentive systems unanimously agree that they are beneficia l. They encourage a focus on new hazards without the need for specific legislation. Schemes based on accident records can result in workers being unfairly harassed by employers. The special position of SMEs must be considered.