Directors of corporations:
- are considered workers under the Workers’ Safety and Compensation Act and corporations must pay for their directors' compensation coverage; and
- receive coverage based on their average earnings in accordance with the Act and Policy 3.1, Loss of Earnings Benefits. Earnings include salaries, wages, tips, commissions, bonuses, allowances or directors’ fees; dividends are not considered earnings.
A director can apply to the board to be deemed a non-working director. A director is considered non-working if that director:
- is not active in the operations of the corporation’s business or subject to the hazards of that industry;
- is not performing any work for the corporation while acting in their capacity as a director in Yukon (no directing, negotiating, influencing or decision-making affecting work, and no visits to the corporation’s worksites to perform services for the company);
- does not receive any earnings as payment for work performed for the corporation; and
- does not receive a T4 or T4A from the corporation (except for fees related to attending annual general meetings and other incidental duties as a director).
A non-working director may attend the corporation’s annual general meeting, perform infrequent banking or regulatory filings and still be considered non-working.
If the board deems a director as “non-working”, then that director is not entitled to compensation benefits in the case of a work-related injury and the corporation and non-working director do not have immunity from civil law suits arising from work-related injuries.
Apply for this exemption by completing our Director’s Exemption Application form. For these exemptions, you have to renew your application every year.
For full details, see the following policies:
If you have any questions, contact us.