Questions and answers

Workers' Safety and Compensation Act

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Overview

The questions and answers below provide more information about the new Workers’ Safety and Compensation Act that comes into effect on July 1, 2022.

About the Workers’ Safety and Compensation Act 

The Workers’ Safety and Compensation Act was passed December 2, 2021 and provides a modern, cohesive framework for the primary goal of preventing workplace injuries and caring for injured workers.

The changes in the Workers’ Safety and Compensation Act aim to enhance worker safety, reduce workplace injuries, streamline the appeals process and improve return to work practices.

Table of contents

Q. Why has the name of the legislation changed?
Q. How are psychological injuries determined
Q. Are there changes to appeals?
Q. What is the time period to file a request for reconsideration?
Q. Are there changes to the Workers’ Compensation Appeal Tribunal (WCAT)?
Q. How has the process for working outside of Yukon changed?
Q. What has changed with optional coverage?
Q. What changes are there for directors of corporations?
Q. What has changed with worker retirement benefits?
Q. What has changed with permanent impairment benefits?
Q. I’m an older worker who was injured at work. Are there any changes that affect me?
Q. What are the duties of workplace parties?
Q. What has changed in relation to reporting serious incidents and injuries?
Q. What has changed with joint health and safety committees?
Q. Can you explain health and safety management systems?
Q. What has changed about a worker’s right to refuse unsafe work?
Q. Are there changes to reprisals?
Q. What are the fines and administrative penalties?

 



 

Q. Why has the name of the legislation changed?

The Workers’ Safety and Compensation Act is a modern and comprehensive piece of legislation that is an amalgamation of the prior Workers’ Compensation Act and Occupational Health and Safety Act. In modernizing the legislation, the name was changed to reflect the combined mandates of prevention of injuries, safety and compensation. Our organization has a new name as well, the Workers’ Safety and Compensation Board.
 
Relevant sections of the Act:
  • Section 3
Website:     

Q. How are psychological injuries determined?

As with other types of injuries, in order to be considered work-related, a psychological injury must arise out of and in the course of employment and the following criteria must be met:
  1. For post-traumatic stress disorder,
  1. the worker was exposed to a traumatic event or events arising out of and in the course of employment; and
  2. the worker has been diagnosed with PTSD by a psychologist or psychiatrist
  1. For other psychological injuries,  
(i) the injury arose out of and in the course of the worker’s employment;
(ii) the worker’s employment was a significant causal factor of the injury;
(iii) there is a confirmed diagnosis of a psychological injury by a psychologist or psychiatrist that meets the criteria in the DSM.
 
Mental stress is not considered to be a work-related injury nor is an injury resulting from any decision by the worker’s employer relating to the worker's employment, including a change in the work to be performed or working conditions, or promotion, transfer, demotion, lay-off, discipline, suspension or termination.
 
A “work-related injury” is defined as an injury or death arising out of and in the course of a worker’s employment resulting from:
  1. a chance event occasioned by a physical or natural cause,
  2. a willful and intentional act, not being the act of the worker,
  3. a disablement, or
  4. an occupational disease,
but does not include
  1. mental stress, or
  2. an injury resulting from any decision by the worker’s employer relating to the worker’s employment, including a change in the work to be performed or working conditions or promotion, transfer, demotion, lay-off, discipline, suspension or termination.
Relevant sections of the Act:
  • Section 77
Website:     

Q. Are there changes to appeals?

All appeals, whether they involve a claim decision, assessment decision or a workplace health and safety order or decision, follow the same process now:
  1. Initial decision
  2. Internal reconsideration
  3. External appeal (Appeal Tribunal)
Appeals of administrative penalties also follow the same simplified process set out above.

The simplification of the reconsideration process for all matters will enhance fairness and consistency by providing two levels of appeals, one internal and one external.
 
This change will reduce complexity and improve efficiency, making the appeals process easier for workers and employers to navigate.
 
Relevant sections of the Act:
  • Sections 73–76, 153–156, 176–178 
Website:     

Q. What is the time period to file a request for reconsideration?

For claim appeals, the time period is 12 months from initial decision.
 
For assessment appeals, the time period is 90 days from initial decision.
 
For workplace health and safety appeals, the time period is 21 days from initial decision or order.
 
For administrative penalty appeals, the time period is 21 days from being served with the initial decision.
 
Relevant sections of the Act:
  • Sections 73–76, 153–156, 176–178
Website:     

Q. Are there changes to the Workers’ Compensation Appeal Tribunal (WCAT)? 

The Appeal Tribunal, formerly known as WCAT, is an independent body whose members are appointed by the Commissioner in Executive Council. The Appeal Tribunal is made up of a chair, vice chair, two members who are representative of employers and two members who are representative of workers.
 
The Appeal Tribunal’s jurisdiction has been expanded to hear appeals of reconsideration decisions of the board from all areas now, including claim matters, assessment matters, workplace health and safety matters and administrative penalties.
 
Relevant sections of the Act:
  • Sections 157–169
Website:     

Q. How has the process for working outside of Yukon changed?

Within Canada:
A worker who meets the conditions set out in section 83 relating to work outside of Yukon will have workers’ compensation coverage while they are working outside Yukon but within Canada for a period of less than six consecutive months. An application can be made for a longer period of time and will be granted on a case-by-case basis. The application for extension must be made before the time period elapses.
 
The conditions for working outside of Yukon but within Canada are:
(a) the worker
(i) is a resident of Yukon, or
(ii) has their usual place of employment in Yukon with an employer who has a place of business in Yukon and the work outside of Yukon is a continuation of that employment;
(b) the work the worker performs is required to be performed both in Yukon and outside Yukon in the normal course of the employment; and
(c) the worker’s employment outside of Yukon lasted for less than six consecutive months immediately before the date of the work-related injury. (Subject to any extension having been approved by the board)
 
Outside of Canada:
A worker who meets the conditions set out in section 84 relating to working outside Yukon will have workers’ compensation coverage while they are working outside Canada for a period of less than 14 consecutive days. Employers will be able to apply for coverage outside Canada for periods exceeding 14 days. This will be granted on a case-by-case basis. The application for extension must be made before the time period elapses.
 
The conditions for working outside of Canada are:
(a) the worker
(i) is a resident of Yukon, or
(ii) has their usual place of employment in Yukon with an employer who has a place of business in Yukon and the work outside Canada is a continuation of that employment;
(b) the work the worker performs is required to be performed both in Yukon and outside Canada in the normal course of the employment; and
(c) the employment outside Canada lasted less than 14 consecutive days immediately before the date of the work-related injury. (subject to any extension having been approved by the board)
 
Relevant sections of the Act:
  • Sections 83-84
Website:     

Q. What has changed with optional coverage?

Under the Workers’ Safety and Compensation Act, there are two types of employers.
  1. Those who have a mandatory requirement to register and pay assessment premiums to the board for their workers; and
  2. Those who have the option to purchase workers’ compensation coverage. 
Employers falling under the first point include every association, corporation, individual, partnership, person, society or unincorporated organization, or other body having in their service one or more workers in an industry. These employers are required to register with the board and pay assessment premiums. Their workers are automatically covered by the compensation provisions of the Act.
 
For those employers falling under the second point, an application may be submitted for optional coverage, specifically, elected or appointed officials of a Yukon First Nation, proprietors, partners and volunteers of employers.

Relevant sections of the Act:
  • Section 79
Website:     

Q. What changes are there for directors of corporations?

Directors are now liable for any unpaid amounts owed to the board by the corporation under the Workers’ Safety and Compensation Act.
 
Relevant sections of the Act:
  • Section 133
Website:     

Q. What has changed with worker retirement benefits?

The Workers’ Safety and Compensation Act pays benefits to injured workers to compensate them for their loss of earning capacity. Some injured workers may also be eligible to receive a retirement benefit if they meet the criteria set out in the Act.
 
The funds are now payable to the worker as a lump sum when they are eligible under the Act.
 
Workers who are eligible for an annuity under former workers’ compensation legislation will also receive the annuity as a lump sum payment when they are eligible under that Act.
 
Relevant sections of the Act:
  • Section 109
Website:     

Q. What has changed with permanent impairment benefits?

In some cases work-related injuries cause conditions that diminish or disturb the function of a worker’s body that could last for the rest of a worker’s life. A worker may have a permanent physical or functional abnormality or loss, including disfigurement. These workers are entitled to permanent impairment benefits.
 
Examples of permanent impairments may include, but are not limited to, loss of limbs; permanent and measurable loss of movement in joints; loss of hearing; loss of sight paralysis; or post-traumatic stress disorder.
 
Workers are now entitled to receive these benefits as a lump sum payment.
 
Relevant sections of the Act:
  • Section 97
Website:     

Q. I’m an older worker who was injured at work. Are there any changes that affect me?

The Act increases the duration of loss of earnings benefits for older workers from up to 24 months to up to 48 months for workers who are 61 years or older and have suffered a loss of earning capacity.
 

Q. What are the duties of workplace parties?

Under all Canadian occupational health and safety laws, employers, workers, supervisors, prime contractors, owners, suppliers and self-employed persons have certain duties to ensure their workplaces are safe and without risks to health.
 
Employers are responsible, as far as is reasonably practicable, for ensuring that their workplace is safe. For example, this means ensuring that the workplace, equipment, work techniques, procedures and systems under the employer’s control ensure the health and safety of their workers, other employers’ workers and other persons at or near the workplace. They must ensure supervisors are competent because of training, knowledge and experience. They must ensure that all serious incidents and injuries are reported immediately to the board.
 
Supervisors must ensure, as far as is reasonably practicable, the health and safety of every worker who is performing work under their supervision. Supervisors must be competent, and ensure that all workers are made aware of all known or reasonably foreseeable hazards, use all protective equipment and wear all protective clothing required. Supervisors are responsible for the duties and responsibilities of a supervisor and a worker.
 
Workers are responsible for taking all necessary precautions to ensure, as far as is reasonably practicable, their own health and safety and that of every other person who may be affected by their acts or omissions. Workers must report workplace hazards or unsafe acts that occur, use any protective equipment and wear any protective clothing required to do their work safely, and report incidents and injuries to their employer. They should never work under the influence of alcohol, drugs, or other substances, or if they are overly tired.
 
Relevant sections of the Act:
  • Sections 27–35
Website:     

Q. What has changed in relation to reporting serious incidents and injuries?

In the case of a serious incident or injury, the employer or prime contractor has a mandatory duty to report it to the board, perform an investigation and prepare a written report. The report must be readily available to the board upon request.
 
What constitutes a serious incident and injury has changed and is now defined in the Workers’ Safety and Compensation Act as:
  1. an incident that results in serious injury to or the death of a worker;
  2. an incident or injury that results in a worker’s admission to a hospital as an inpatient;
  3. a major structural failure or collapse of a bridge, building, crane, excavation, hoist, mine, mining development, temporary construction support system, tower or any other like structure;
  4. a major release of a hazardous substance;
  5. an explosion or fire that has the potential to cause serious injury to or the death of a worker or other person;
  6. an incident, injury or death that is required to be reported by the regulations or by order of the board. 
Relevant sections of the Act:
  • Section 57–58
Website:     

Q. What has changed with joint health and safety committees?

Health and safety committees support the worker’s right to participate in, and the employer’s duty to ensure a healthy and safe workplace. Worker and employer representatives appointed to the committee work with the employer to raise awareness of health and safety issues in the workplace, recognize and identify workplace hazards and develop recommendations for the employer to address these hazards.
 
A joint health and safety committee is required when an employer regularly employs 20 or more workers. Employers with 5 or more (but less than 20) regularly employed workers must have a worker health and safety representative.
 
The duties of the health and safety committee/worker health and safety representative include:
  • receiving, considering and making recommendations to the employer or prime contractor on concerns or complaints with regards to health and safety;
  • participating in the identification of hazards;
  • advising the employer on the development and promotion of measures to protect safety;
  • participating in inspections;
  • participating in investigations of serious incidents and refusals to work;
  • maintaining records with regards to duties;
  • co-operating with any person exercising duties under the legislation; and
  • other duties as prescribed by the regulations.
Relevant sections of the Act:
  • Sections 36–43
Website:     

Q. Can you explain health and safety management systems?

A workplace health and safety management system is a set of policies and procedures that manage health and safety at work and can help to minimize the risk of injury from workplace activities. The main focus of a health and safety management system is to manage risk through the identification and control of hazards.
 
The requirements to have a workplace health and safety management system is based on whether an employer has 20 or more workers regularly employed.
 
Employers with less than 20 workers will be required to involve workers in hazard identification, control or elimination of identified hazards.
 
Relevant sections of the Act:
  • Sections 44–46
Website:     

Q. What has changed about a worker’s right to refuse unsafe work?

A fundamental right under the workplace health and safety system is a worker’s right to refuse to perform unsafe work. This right applies when a worker believes, on reasonable grounds, that the work activities or conditions of the work are likely to endanger the health and safety of the worker or another person.
 
The process has been clarified and is as follows:
  1. The worker must immediately report the refusal and reasons for the refusal to their employer or supervisor
  2. The employer or supervisor must immediately investigate and take any remedial actions necessary and inform the worker
  3. If the worker continues to refuse to perform the work, the employer or supervisor must investigate the matter again with a health and safety committee, or worker health and safety representative and the worker and take any action necessary to remedy the unsafe situation
  4. If the worker continues to refuse to perform work, the employer must report the work refusal and the reasons for the work refusal to the board
The worker has the right to refuse unsafe work until the matter is remedied, investigated and determined safe.
 
This change provides greater opportunity for workplace parties to address concerns internally without the need for external enforcement involvement, along with ensuring worker safety by clarifying the steps to be taken by the worker and the employer to find a resolution to workplace safety issues.
 
Relevant sections of the Act:
  • Sections 47–52
Website:     

Q. Are there changes to reprisals?

Under all workplace health and safety legislation across Canada, including Yukon, it is against the law for employers and trade unions to take any action against a worker that adversely affects any term or condition of their employment, including, but not limited to laying off, suspending, dismissing, disciplining, penalizing, or intimidating a worker, for the worker exercising a right or performing a duty under the health and safety provisions of the Act, refusing to perform unsafe work, taking reasonable actions to protect the health and safety of another person, or seeking enforcement of the Act. This is called a reprisal under the Act.
 
A worker who believes on reasonable grounds that an employer or trade union has taken action or threatened reprisal against them, may now elect to make a written complaint in accordance with the dispute resolution process set out in their collective agreement or directly to the board.
 
If the complaint is filed with the board, the board will refer the complaint to an arbitrator to decide the matter. There is no appeal from an arbitrator’s decision.
 
Reprisal complaints must be made within 21 days of the alleged reprisal.
 
If an arbitrator finds that an employer or trade union has contravened the Act, the arbitrator can order the employer to stop the reprisal, reinstate the worker, pay the worker lost wages and benefits, remove a reprimand and pay the cost of the proceeding to the board.
 
Relevant sections of the Act:
  • Sections 53–56
Website:     

Q. What are the fines and administrative penalties?

If you commit an offence under the Workers’ Safety and Compensation Act, you may be subject to prosecution and potential fines and imprisonment.
 
Fines
  • Not exceeding $500,000 on first offence, and $50,000 per day for each day the offence continues;
  • Not exceeding $1,000,000 on second or subsequent offence, and $100,000 per day for each day the offence continues; and
  • Where a person is convicted of an offence, in addition to the above fines, a person may be imprisoned for a term not exceeding two years.
As an alternative to prosecution, the use of administrative penalties for all offences is permitted.
 
Administrative penalties
  • Not exceeding $250,000 per offence, and $15,000 per day for each day the offence continues.
Relevant sections of the Act:
  • Sections 174–175
Website:     

 


 
Relevant sections of the Act:
  • Section 103
Website: