Policy
The WSIB may consider alternative payment arrangements to an employer's account while a disputed premium amount is under appeal.
Guidelines
Definition
Appeal for the purpose of this policy means a reconsideration of a decision-maker's decision following an employer's objection, an appeal to the Appeals Branch or to the Workplace Safety and Insurance Appeals Tribunal (WSIAT).
In situations where an employer is appealing a WSIB premium issue or is unable to pay, the employer may:
- request to post an irrevocable letter of credit (LC) for the full amount of the disputed premium, or
- negotiate a phased payment plan, refer to 14-04-04, Collections Based on Financial Hardship.
By choosing a LC, the WSIB suspends and, the employer avoids collection activity on the disputed premium amount due.
Appeal decision
If the employer's appeal is successful, the WSIB adjusts the employer's account accordingly:
- If the employer posted a LC as security, the LC is released and no credit interest calculation will apply for the LC's posted amount. Also, the WSIB does not reimburse administrative fees incurred by the employer for the original issuance or renewal of the LC.
- Credit interest will be calculated and paid on premiums (payments received) that became due during the course of the appeal, providing they were paid in full, until the date of the appeal decision.
If the employer's appeal is unsuccessful, the employer is required to pay all outstanding amounts immediately, including any accrued or applied interest charges. The WSIB will cash the LC immediately and pursue any remaining balance due.
For more information on credit and/or debit interest, refer to 14-02-16, Credit Interest on Appeals and 14-02-07, Employer Non-Compliance Interest and Charges.
Letter of credit
The standard form of security considered acceptable by the WSIB is an irrevocable and renewable LC. It must be issued or guaranteed by a bank defined under Schedule 1 or Schedule 2 of the Canadian Bank Act and be issued for the duration of one year. The WSIB reserves the right to approve the format, content and issuer of LC.
WSIB issued certificates
Clearance certificates may be issued while a disputed premium amount is under appeal and a LC has been provided as security provided the employer complies with all requirements outlined in 14-02-04, Clearance Certificate.
Purchase certificates will not be issued by the WSIB while a disputed premium amount is under appeal and a LC has been provided as security. For more information, refer to 14-02-03, Purchase Certificates.
Writ of seizure and sale certificates will not be filed by the WSIB where an employer provided a LC for security within 15 days of the request. Refer to 14-04-03, Writs of Seizure and Sale.
Application date
This policy applies to all active appeals in progress on or after December 5, 2024, regardless of when the appeal was initiated.
Document history
This document replaces 14-04-05 dated April 7, 2008.
This document was previously published as:
14-04-05 dated October 12, 2004.
References
Legislative authority
Workplace Safety and Insurance Act, 1997
Sections 137
Workers' Compensation Act, Revised Statutes of Ontario 1997
Section 72(1)
Approval
Approved by the President and CEO on December 3, 2024.