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. Simple accident statistics are invalid as an index of risk for SMEs because accidents are infrequent. SMEs could therefore suffer huge variations in incentive levels as a result of just one or two accidents.