Policy
The WSIB takes into consideration any payment, allowance or benefit paid to workers by their employer in respect of a work-related accident, including any gratuity, in fixing the amount of compensation paid to the worker. Such compensation may include a deduction of money payable to the worker equivalent to the amount of any contributions made by the employer.
Guidelines
Schedule 1 employers
If a Schedule 1 employer pays advances or provides some other benefits (including room and board if supplied as part of the worker's earnings) during periods that compensation is payable to a worker, the WSIB reimburses the employer. If the amount advanced by the employer is less than the compensation payable to the worker, the employer is reimbursed only for such amounts as actually expended. The balance is provided to the worker.
The WSIB does not reimburse an employer for
- non-compensable periods
- the portion of advances that exceed the compensation payable to a worker
- special expenses normally paid by an employer, and
- reimbursement requests made after compensation has been paid to the worker.
Schedule 2 employers
If a Schedule 2 employer provides benefits or advances to a worker, the WSIB does not issue compensation cheques. Instead, the WSIB records all payments as a charge against the employer and notes that any compensation payments payable to the worker has been "covered by advances" from the employer.
All employers
Pension & FEL supplements
Compensation payments in the form of pension awards for permanent disability under the pre-1989 legislation and benefits for non-economic loss (NEL) and future economic loss (FEL) are not subject to any deductions for employer advances or benefits, and employers are not eligible for any reimbursement for these payments.
The exemption from deductions does not apply to pension or FEL supplements for any supplements awarded or continued on or after July 1, 1993. The WSIB takes into account payments made by an employer in relation to a worker's injury, when calculating the pension or FEL supplement payable to the worker.
Garnishments
When an employer pays a worker advances or benefits less an amount for a garnishment which the employer is honouring, the WSIB cannot reimburse the employer the amount garnished. The WSIB reimburses the employer for the advance less the amount directed to honour the garnishment. The balance of the compensation payment is paid directly to the worker, unless the court has issued a Notice of Garnishment to the WSIB against the worker's payments.
Holidays and vacations
Workers are entitled to receive both full compensation benefits and employer advances, without deduction, during those periods when they are taking holidays granted by a collective bargaining agreement, annual vacation, and statutory holidays. However, compensation payments may be reduced or suspended for other reasons if an injured worker leaves the Province. See 15-06-07, Leaving the Province/Country.
Informing clients
The WSIB informs the worker and employer of the amount of compensation covered by advances.
Application date
This policy applies to all decisions made on or after July 1, 1993, for all accidents.
Document History
This document replaces 05-01-04 dated June 24, 1993.
References
Legislative Authority
Workplace Safety and Insurance Act, 1997, as amended
Sections 43, 46, 53(2), 56, 64
Workers' Compensation Act, R.S.O. 1990, as amended
Sections 21, 40(5), 42, 43(9), 45, 147(2)
Minute
Administrative
#4, June 11, 2004, Page 365