Workers Comp (at least in Canada) is a NO-FAULT compensation system funded by assessments on all businesses in each province. The assessments are based on the size (# of employees), nature and claims history of the business.

If an employee is injured in a 'work-related' accident then the Workers Comp board approves the claim and it is paid out of the fund. The only effect on the employer is that its base premium increases, although not significantly.

As Moxie said, a determination by the board that a claim falls within its jurisdiction bars all lawsuits against the employer and other employees.

The injured employee usually gets an award of a portion of lost wages - NO MONEY FOR PAIN AND SUFFERING.

The whole process is usually way cheaper for the employer. The only exception is where an employer has the misfortune to have lots of employees who injure THEMSELVES through their own clumsiness/stupidity. Workers Comp compensates them too, and the Employer's assessments still go up.