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Canadian Workers' Compensation 101

Here are some workers' compensation basics to introduce you to how workers' compensation in Canada operates:
 
WORKERS' COMPENSATION ORIGINS / HISTORY
See 'History of Workers' Compensation' (includes Meredith principles).
 
 
WORKERS' COMPENSATION BOARDS/COMMISSIONS
Each province and territory in Canada has its own exclusive Workers’ Compensation Board/Commission (WCB). Note, Northwest Territories and Nunavut have a combined Workers’ Compensation Board. Contact information for each WCB can be found by clicking here.
 
 
ASSESSMENTS / PREMIUMS (EMPLOYERS)
Workers' Compensation Boards/Commissions (WCBs) are funded by employers (not by government). Employers are charged a certain dollar amount per $100 of payroll. This amount is known as the "assessment rate" or "premium" (for more information, see here). Not all employers pay into workers' compensation; this depends on each province/territory's legislation. (For more information on worker coverage – see here)
 
The money collected from employers goes into a fund, generally known as the Accident Fund. In general, monies from this fund go toward:
 
(a)
providing wage loss benefits to workers injured on the job who are unable to work due to a work injury;
(b)
providing medical aid and rehabilitation to workers injured on the job; and
(c)
the general administration of the Workers' Compensation Board/Commission
 
Experience Rating
Each province/territory has an average provisional assessment rate. The employer does not necessarily pay this average assessment rate. Individual employers' assessment rates are based on:
(1)
Industry or Class assessment rate – Different industries, classes, and occupations can be charged different assessment rates since the inherent occupational danger for every job/industry varies (for more info see here)
(2)
Experience Rating – An individual employer's assessment rate may be increased or decreased based on how many work injuries/diseases have occurred at the employer's place of business (for more info see here)
 
Individually Liable Employers (Self-insurers)
Certain employers may be individually liable employers (or self-insurers). These employers would not pay assessment rates but rather pay (either through reimbursement or a deposit account) the WCB for the actual cost of compensation paid in respect of their workers. Examples of potential individually liable employers are federal and provincial governments.
 
For a listing of individually liable employers in each province / territory click here.
For additional and more detailed information on Assessments / Premiums, see here
For links to Employer Information at each WCB, see here.
 
 
 BENEFITS (WORKERS/DEPENDANTS)
Monies paid to injured workers by the Workers' Compensation Boards/Commissions (WCBs) are generally known as workers' compensation "benefits". The following are the most common type of workers' compensation benefits:
 
(1) Wage loss benefits;
(2) Permanent disability benefits;
(3) Dependency benefits;
(4) Rehabilitation
 
Wage Loss Benefits
Each province / territory compensates the injured worker a certain percentage of his/her normal wages (see here). Most provinces/territories have a maximum amount of earnings that they will cover (see here). To learn more about temporary disability benefits (including wage loss), see here. Some provinces have a waiting period before benefits are paid (see here).
 
Permanent Disability Benefits:
If an injured worker is determined to have a permanent disability because of his/her work injury, he/she may receive additional or varied compensation. For more information, see here.
 
Fatal and Dependency Benefits (Survivor Benefits)
If a worker dies due to a work injury/disease, his/her dependents may be eligible to receive fatal and dependency benefits. For more information, see here.
 
Rehabilitation
Workers' Compensation Boards/Commissions provide rehabilitation services and programs to workers injured on the job to return workers to their pre-injury health and to get injured workers back to work. For more information, see here.
 
For additional and more detailed information on Benefits and Rehabilitation, see here.
For links to Worker Information at each WCB, see here.
 
 
 LEGISLATION
 
Workers' Compensation Legislation
Workers' Compensation Boards/Commissions (WCBs) administer the workers' compensation legislation (generally the Workers' Compensation Act) of the province/territory that they are in. This legislation is created by the provincial/territorial government and administered by the WCB. You can access online versions of workers' compensation legislation here. A glossary of terms and legislative concordance tables can be found here.
 
Occupational Health and Safety Legislation
Related to workers' compensation legislation is occupational health and safety (OH&S) legislation (generally, the Occupational Health and Safety Act). In addition to workers' compensation legislation, some WCBs also administer, in full or in part, the OH&S legislation in their jurisdictions. See here for links to online versions of OH&S legislation.
 
Federal Workers' Compensation Legislation
Federal government employees are governed under the Federal Government Employees Compensation Act (GECA). Provincial/territorial WCBs generally administer GECA claims. See 'Administer other Acts'.
 
Policy
All WCBs have policies outlining how workers' compensation legislation is applied in their jurisdiction. You can find links to each WCB's policy manual here.
 
Summary
Workers' Compensation Acts and Regulations are very detailed and comprehensive. The AWCBC has prepared some summary charts to help compare various legislation-related topics. Click here to see the table of contents for topics covered. Examples of topics covered include:
• Access to information / confidentiality of information;
• Action: Right of Action (& Subrogation);
• Appeal process and procedures;
• Assets / funds / reserves;
• Basis of compensation;
• Board of directors (governance);
• Board structure andcomposition;
• Filing, reporting and notice of a claim;
• Compensation principles and presumptions;
• Coverage: Scope of coverage;
• Definitions from workers' compensation legislation;
• Powers, Duties and Jurisdiction;
• Duty to accommodate;
• Employers advisors, associations and penalties;
• Medical examinations;
• Financial / annual reports;
• Healthcare / Medical aid;
• Occupational disease / industrial disease;
• Interjurisdictional implications;
• Stress;
• Regulations;
• Structure of workers' compensation Acts;
• For more of the table of contents, click here.
 
**Disclaimer**: The tables listed above are not all inclusive. It is necessary to read the actual Acts and policies in their entirety for comprehensive understanding of a particular situation.
 
 
 OCCUPATIONAL HEALTH & SAFETY (OH&S)
 
Occupational Health and Safety (OH&S) is different from workers' compensation, but the two are very much related. Workers' compensation deals more specifically with compensating workers for work injuries (e.g. for lost wages or medical aid) after an injury has occurred. Occupational health and safety deals more specifically with keeping workers safe on the job (generally through specific work procedures) before a work injury has occurred.
 
Links to online versions of Occupational Health and Safety Acts and regulations can be found here.
 
Some Workers' Compensation Boards/Commissions administer, in full or in part, the OH&S legislation in their jurisdictions. In other provinces/territories, the provincial government (or one of its departments) is responsible for administering occupational health and safety. To see who is responsible for OH&S in each jurisdiction, click here.
 
Occupational health and safety deals with things such as:
• Inspections of worksites;
• Stop work orders;
• Right to refuse (unsafe) work;
• WHMIS (workplace hazardous materials information system);
• Personal Protective Equipment (PPE);
• Handling and storage of materials;
• Confined spaces;
• OHS Committees and representatives;
• Roles and responsibilities of employers, workers and others;
• Joint health and safety committees;
• Training requirements;
• Fall protection;
• Enforcement;
• Designated/regulated substances;
• Controlled products;
• First aid training for the workplace; and
• Prevention
 
The AWCBC website currently has the following OH&S related information (with more to come):
 
 
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 CANADIAN WORKERS' COMPENSATION STATISTICS
 
NATIONAL WORK INJURIES STATISTICS PROGRAM (NWISP) – AWCBC INITIATIVE
The AWCBC manages the National Work Injuries Statistics Program (NWISP). This program maintains the following workplace injury disease and fatality statistics:
 
(1) Accepted Time-Loss Injuries/Diseases
by:
(a)
jurisdiction (i.e. Canadian provinces/territories);
(b)
gender;
(c)
age;
(d)
nature of injury/disease;
(e)
source of injury/disease;
(f)
event;
(g)
part of body;
(h)
occupation; and
(i)
industry
 
(2) Fatalities
by:
(a)
jurisdiction (i.e. Canadian provinces/territories);
(b)
gender;
(c)
age;
(d)
nature of injury/disease;
(e)
source of injury/disease;
(f)
event;
(g)
part of body;
(h)
occupation; and
(i)
industry
 
See here for general statistics by jurisdiction:
To order a copy of our National Work Injury and Disease Statistics publication, see here.
To send in a detailed request for cross-tabulated data (using the above noted criteria), see here.
 
KEY STATISTICAL MEASURES (KSMs) - AWCBC INITIATIVE
The AWCBC produces the following statistics by province/territory as part of its Key Statistical Measures (KSM) package (many are financial in nature):
 
These Key Statistical Measures (KSMs) are available in 3 different formats:
(1)
Data Tables (contain a complete set of KSMs for all jurisdictions by year);
(2)
Dynamic Graphs (choose from a list of KSMs and Indicator Ratios to create customized graphs);  or
(3)
Customized Data Tables (choose statistics, jurisdictions and years to create customized data tables) 
 
It is important to look at the Definitions to the Key Statistical Measures to interpret the data.
1.
Number of Claims Reported
2.1.
Number of New Lost-Time Claims for Assessable Employers
2.2
Number of New Lost-Time Claims for Self-Insured Employers 
3.
Number of Fatalities Accepted
4.1
Current Year Benefit Costs Incurred for Assessable Employers ($ 000's)
4.1.1
Current Year Health Care and Vocational Rehabilitation Benefit Costs Incurred for Assessable Employers ($ 000's)
4.2
Current Year Benefit Costs Incurred for Self-Insured Employers ($ 000's)
5.1
Benefit Payments for All Years Paid During the Year for Assessable Employers
5.1.1
Health Care and Vocational Rehabilitation Benefit Payments for All Years Paid During the Year for Assessable Employers ($ 000's)
5.2
Benefit Payments for All Years Paid During the Year for Self-Insured Employers
6.
Benefit Costs Incurred ($ millions) 
7.1
Total Benefit Liabilities for Assessable Employers ($ millions)
7.1.1
Health Care and Vocational Rehabilitation Benefit Liabilities for Assessable Employers
7.2
Total Benefit Liabilities for Self-Insured Employers ($ millions)
8.
Administration Costs for Assessable Employers ($ 000's)
9.
Total O H & S Costs Paid by Boards/Commissions during Year ($ 000's)
10.
Assessment Revenue for Assessable Employers ($ millions)
11.
Total Premium Revenue ($ millions)
12.
Assessable Payroll for Assessable Employers ($ millions)
13.1
Actual Average Assessment Rate (for Assessable Employers)
13.2
Provisional Average Assessment Rate (for Assessable Employers)
14.
Market Rate of Return
15.
Percentage Funded
16.
Average Calendar Days from Injury to First Payment Issued
17
Average Calendar Days from Registration to First Payment Issued
18.
Average Composite Duration of Claim
19.
Average New Impairment Award Percentage
20.
Percentage of Claims Awarded Impairment Benefits
21.
Injury Frequency (per 100 workers of assessable employers)
22.
Percentage of Workforce Covered
23.
Real Rate of Return to Discount Fully Indexed Benefits
24.1
Percentage of Lost-Time Claims Receiving Wage-Loss Benefits at the End of the 2nd Year After the Accident Year
24.2
Percentage of Lost-Time Claims Receiving Wage-Loss Benefits at the End of the 6th Year After the Accident Year
 
In addition, to the Key Statistical Measures above, the AWCBC produces some Indicator Ratios. These Indicator Ratios correlate two or more of the KSMs above. They are:
 
IR1
Administration Costs per $100 of Assessable Payroll
IR2
Current Year Benefit Costs Incurred per $100 of Assessable Payroll
IR2.1
Current Year Health Care and Vocational Rehabilitation Benefit Costs Incurred per $100 of Assessable Payroll
IR3
Benefit Liabilities Expressed as a Multiple of Benefit Payments Made in the Year
IR3.1
Health Care and Vocational Rehabilitation Benefit Liabilities Expressed as a Multiple of Benefit Payments Made in the Year
IR4
Occupational Health & Safety Costs paid by Boards/Commissions per $100 of Assessable Payroll
IR5
Current Year Average Benefit Cost Per Lost-Time Claim
IR6
Administration Costs per Lost-Time Claim
IR7.1
Percentage of Benefit Payments Represented by Health Care and Vocational Rehabilitation Benefit Payments 
IR8.1
Percentage of Total Benefit Liabilities Represented by Health Care and Vocational Rehabilitation Services Benefit Liabilities
 
 
 AWCBC – A NATIONAL WORKERS' COMPENSATION RESOURCE
 
FULL MEMBERS
The AWCBC is a non-profit organization funded by our members. Our members include: 
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Workers' Safety and Compensation Commission (Northwest Territories and Nunavut);
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If you are a member, you can access our member's section.
 
ASSOCIATE MEMBERS
For more information on becoming an Associate Member of the AWCBC, see here. If you are an associate member, you can access our associate member's section.
 
AWCBC'S VISION, MISSION ANDVALUES
Our Vision: To drive a strong Canadian leadership role in providing the safest and healthiest workplaces in the world and a fair, affordable workers’ compensation insurance system. Our Mission: Achieving excellence through data analysis, shared knowledge, education and networking. Our Values include: Member-driven, results-oriented, credible, realistic, innovative, accountable and ethical.
 
ABOUT US
For more information about the AWCBC including its History/Overview  and contact information, see About Us.
 
This site is managed by the Association of Workers' Compensation Boards of Canada (AWCBC). For information about the AWCBC, see About Us.
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