Newfoundland and Labrador Employer Guide

Transcription

1 Newfoundland and Labrador Employer Guide

2 The information in this guide provides the reader with general information about the Workplace Health, Safety and Compensation Commission. It does not cover every issue or exception. If you want to learn more about workers compensation, return-to-work obligations and injury prevention, please refer to the relevant legislation and regulations which are printed by the Queen s Printer, or visit our website at: Updated March 2013

3 Table of contents Why register with WHSCC? Who must register Fishing industry Logging industry Exclusions How do I register? What if I do not register? How much will it cost? How do I pay my assessments? Managing your account Special coverage Industrial classification system Hiring contractors Information needed to register Late registration Cost of injury Commission estimate Assessments Assessment rates Assessable earnings Deductions Paying assessments Payment methods Collection and legal action Annual reporting Quarterly reporting (fish buying and pulpwood & sawlog harvesting) Payroll adjustments Changes to your business activities Restructuring Contacts Change of ownership Closing your operation Records to be kept Optional personal coverage (OPC) Householder coverage Student coverage Out-of-province coverage Classification system Multiple classification Base assessment rates PRIME Hiring individuals Hiring non-incorporated companies Hiring incorporated companies Liability for assessments Clearance letters Connect web portal Contract work Legal transactions How to request a clearance letter

4 Table of contents (continued) Assessment audits Injury costs Financial audits - frequently asked questions Transfer of injury costs Second Injury Relief Injury prevention Prevention Services Occupational Health and Safety Committees/ Worker Health and Safety Representatives/ Workplace Health and Safety Designates Occupational Health and Safety programs Ergonomics Young workers When an injury occurs Worker s responsibility Employer s responsibility Compensation Services Benefits and assistance available to injured workers Return to work legislation Wage-loss benefits Health care Early and safe return to work Re-employment obligation Re-employment penalties and payments ESRTW advice and support Return to work program Labour market re-entry (LMR) Elements of an effective program Penalties for employer non co-operation On-the-job-training Employment readiness Academic upgrading/formal training Entrepreneur assistance Extended earning loss benefits Recurrence Subsequent Reports Permanent functional impairment (PFI) award Dependency benefits Investigations Employer access to file information

5 Table of contents (continued) Vendor numbers Employers Advisors Requesting a review Internal review External review Viewing your file When a workplace injury occurs 3 forms should be sent to the Commission Employer s Report of Injury Form /32 Contact Information Assessment Services Department Other frequently used numbers Fax numbers/toll free numbers

6

7 Why register with WHSCC? The workers compensation system in Newfoundland and Labrador (NL) is a no-fault insurance system that protects employers and workers. Employers registered with the Workplace Health, Safety and Compensation Commission (the Commission) pay assessments that fund the system, and in return they cannot be sued for the costs of a work-related injury, illness or fatality. Who must register The Workplace Health, Safety and Compensation Act (the Act) requires all employers performing work in NL to register with the Commission. Almost all workplaces in this province are covered under the Act. All incorporated entities operating in NL must register with the Commission. Coverage is mandatory for all workers, including the owner, directors or managers, even if the owner is the only worker. A non-incorporated entity is not required to register if the only workers are the proprietor or partners. However, as soon as a non-incorporated entity hires a worker or sub-contracts work in this province, it is required by law to register with the Commission and pay assessments on the earnings of that worker and to report sub-contractors annually. The proprietor or partners of a non-incorporated business are not automatically covered under the Act. This means they cannot automatically receive benefits from the Commission in the event of a work-related injury. However, if the owners of a nonincorporated entity wish to be covered, they may voluntarily apply for coverage under the Optional Personal Coverage Program. Registration is also required where a business (the principal) sub-contracts work in the province, even if the business itself has no direct workers in NL. Fishing industry Registration requirements and the methods of assessment differ for some employers in the fishing industry. The three main industry components for consideration include: fish buying, fish harvesting and fish processing. Fish buying Fish buyers must register with the Commission and pay assessments on the value of fish purchased from commercial fishers. Fish purchase accounts must be opened by: fish plants that purchase fish either directly or indirectly from commercial fishers unless the fish is acquired from another processing establishment; commercial buyers who purchase fish directly from commercial fishers and who do not resell the fish to a fish processing plant; or, managing owners or persons employing crew members on a boat, vessel or ship engaged in the fishing industry in NL, who land part of the boat s catch outside the province. Fish harvesting A commercial fisher is automatically covered by the Commission if he/she is: a master or member of a crew of a licensed commercial fishing vessel; a master or member of a crew of a vessel which is engaged in fish packing, fish collecting or fish buying for commercial sale or use; or, any person who, in the opinion of the Commission, contributes to the catching or landing of fish for commercial sale or use in the province of NL. As commercial fishers are generally covered by the assessments paid by Page 2

8 fish buyers, vessel owners or fishing enterprises, they do not normally have to register with the Commission. A commercial fisher who is engaged in the maintenance or minor repair of the fishing vessel or equipment during the fishing season or in the off-season, is covered under the Act, as these activities are considered incidental to the fishing operations. However, there are several instances where a commercial fisher or fishing enterprise would be required to register with the Commission. These include: commercial fisher or fishing enterprise hires a person who is not a commercial fisher to engage in onshore activities such as maintenance or minor repairs; commercial fisher or fishing enterprise involved in the construction of its fishing vessel or doing major repairs on that vessel; or, if the vessel catch is not sold to a fish buyer required to register with the Commission (e.g., the fish is sold outside of the province). In this situation, the person who engaged the master or crew of the fishing boat, or the person or organization that transmitted the crew share of the sales, must register with the Commission. This may be the vessel owner, fishing enterprise or the person or organization that controls or decides where the fish is sold. Fish processing Employers who operate a fish processing plant or a factory freezer vessel must also register with the Commission and pay assessments based on the payroll of their workers. An employer operating a fish processing plant will have two accounts with the Commission one for their plant operations and one for their fish purchases. Logging industry Like fishers, registration requirements and the methods of assessment differ for some employers in the logging industry. The two main industry components for consideration are harvesting and processing. Wood harvesting Wood harvesters (cutters or loggers) pay assessments based on the volume (cubic meters) of wood cut. The person or firm who owns the cutting permit or cutting rights to the land on which wood is cut must register and pay the assessments. Wood processing Employers engaged in other aspects of the forestry industry, such as sawlog and pulpwood handling and processing, must register and pay assessments based on the payroll of their workers. These employers will have two accounts with the Commission one for their forestry operations and one for their wood harvesting. Exclusions Entities employing individuals under the following situations are not required to register with the Commission: employment by a person in respect of construction or renovation of a private residence, where the residence is or shall be used as a private residence of that person; employment by a person in respect of a function in a private residence of that person; and professional sports competitors. However, coverage may be obtained in these situations through the Householder or Optional Personal Coverage Programs. Page 3

9 How do I register? An employer can register by completing a registration application and faxing or mailing it to the Commission. A registration application and instructions can be obtained from our website at: or from one of the Commission offices. For inquiries or assistance, please contact one of our employer registration representatives at: (709) , or toll free in Canada at: Information needed to register In general, you will need the following information when you register: 1. the complete legal name of your business or if you are registering under a partnership or proprietorship, the legal names of the business owners; 2. your incorporation number and date if you operate a limited company; 3. copy of your Certificate of Incorporation and Notice of Directors if you operate a limited company; 4. description of your business activity and industry; 5. estimate of your payroll if you employ workers; 6. start date of operations; 7. names and contact information of the proprietor, all partners, or directors; 8. payroll information for prior years of operation; and, 9. name(s), contact information and contract values for any sub-contractors used. What happens when a registration application is received? When an employer registers with the Commission, a seven digit firm number is assigned. This number identifies the employer and should be provided on all correspondence and payments sent to the Commission or when you contact us to discuss your account. Once you are registered you will receive a letter and invoice confirming your registration. What if I do not register? All employers are required by law to register with the Commission and pay assessments based on their workers earnings. Failure to register may result in the following financial penalties: Late registration The late registration penalty can range from a minimum of $50 to a maximum of $2,000 per year, depending on the assessment amount for each year. The employer is also required to pay assessments for the years the business operated but was not registered. Cost of injury In the event of a work-related injury, an employer who is not registered may, in addition to owing unpaid assessments, be held liable for the total cost of the injury. Depending on the severity of the injury, this could be extremely costly for the employer. Commission estimate An employer who does not register with the Commission may be assessed based on estimated earnings determined by the Commission. How much will it cost? Assessments The amount an employer pays the Commission each year is called an assessment. Employers pay assessments based on the earnings of their workers (full-time, part-time and casual workers and directors of incorporated companies), except those workers excluded by regulation (see exclusions on page 3). In general, your annual assessment is determined by your assessment rate and your assessable earnings. Assessments are calculated based on assessment rates per $100 of assessable earnings. Page 4

10 Assessable earnings are replaced by alternate units of measurement for those employers involved in pulpwood/sawlog harvesting and fish buying. Employers who are eligible for experience rating and/or the PRIME program may also have their assessments adjusted through refunds or charges depending on their occupational health and safety practices and claims cost experience. Employers in the construction industry pay an additional levy which is collected by the Commission on behalf of the Newfoundland and Labrador Construction Safety Association (NLCSA). The NLCSA, in partnership with the Commission, has implemented this levy to provide funding for the NLCSA to work with the construction industry to promote occupational health and safety. Assessment rates Because different industries experience different levels of injury costs, they have different assessment rates. Industries with lower cost experience have lower assessment rates, and industries with higher cost experience have higher assessment rates. The classification process and the calculation of base assessment rates are described in the section titled Industrial Classification System (see page 14). Assessable earnings This is the amount that you must report and pay assessments on each calendar year. Essentially, this amount is your workers gross earnings, less deductions allowed by the Commission for that year. Employers who sub-contract work may also be assessed on the labour portion of the contract. Note: You must retain a record of your payroll information, including supporting documentation for deductions for six years so that it can be verified by the Commission. There is a minimum assessment of $50 that an employer must pay in a calendar year. You may also incur financial penalties if you are late registering, reporting or paying for any year. The following are some types of earnings that must be included when reporting assessable earnings: #1. SAMPLE CALCULATION Annual Assessment Example: the 2011 base rate for a gasoline station is $1.48 for every $100 of payroll. This means that an employer with an annual payroll of $50,000 will pay an assessment of $740 in Assessment Rate/100 x assessable payroll = Annual Assessment $1.48/100 x $50,000 = $740 Figure #1 provides a sample Annual Assessment Calculation. gross salary, gross hourly earnings, overtime, retroactive pay increases; director earnings, fees and bonuses; shareholder dividends where the owner chooses to be remunerated for their services with a share of profits; vacation pay, work-related and discretionary bonuses, tips and gratuities; commissions from employment; sick pay, up to 13 consecutive weeks; gifts, education allowances, etc. Generally, all taxable benefits are assessable. For a complete list of items to be included in assessable earnings, contact the Commission s Assessment Services Department. Page 5

11 Deductions Three types of deductions that can be made from the gross earnings paid to your workers include: excess earnings; earnings reported to other Canadian workers compensation boards; Human Resources Skills Development Canada (HRSDC) and the Department of Human Resources, Labour and Employment (HRLE) wage funding eligible for blanket coverage. Excess earnings The Commission insures payroll to a maximum annual amount per worker. This amount is referred to as the maximum assessable earnings. This amount is adjusted each year according to the Consumer Price Index (CPI). If any of your workers earnings exceed this maximum for any calendar year, you can claim the amount above the maximum as an excess earnings deduction on your annual Employer Payroll Statement (see figures #2 and #3 below). To obtain further information on maximum assessable earnings, please refer to our website at: or contact the Assessment Services Department. Earnings reported to other Canadian workers compensation boards The workers compensation boards of Canada have an agreement in place to avoid duplicate assessments for employers whose workers are employed in more than one Canadian jurisdiction. If your firm is registered in NL and you were required to register and pay assessments in another Canadian jurisdiction for some of your workers earnings, you may be entitled to a deduction. This deduction is reported when you complete your annual Employer Payroll Statement (see figure #4). HRSDC and HRLE WASC funding reports and pays assessments directly to the Commission for wages under some of its funding programs. A deduction is permitted on your annual Employer Payroll Statement for wage subsidy #2. Maximum Assessable Earnings $48,425 $49,295 $50,379 $51,235 $51,595 #3. SAMPLE CALCULATION Maximum assessable earnings and deduction Employee name Gross earnings J. Smith $88,500 M. Jones $75,000 Total deduction - excess earnings (sum excess earnings) Excess Earnings (Gross earnings less $51,595) $36,905 $23,405 $60,310 Note: When calculating maximum assessable earnings for individuals who worked for your firm in both this province and another Canadian jurisdiction where assessments were paid in both jurisdictions, do not include the earnings paid for work outside of NL in your calculation of the maximum assessable for this province. Page 6

12 funding under the following HRSDC or HRLE funding programs: Job Creation Partnerships; Labour Market Partnerships (LMP); Employment Assistance Services (EAS); Youth LMP Career Focus Skills Link SWASP Canada Summer Jobs (not-for-profit firms only) If HRSDC or HRLE reimbursed you for earnings paid to individuals under any of these programs, you can deduct these earnings on your annual Employer Payroll Statement since HRSDC or HRLE has already reported these earnings and paid assessments to the Commission. You may not deduct earnings paid under any other federal or provincial funding programs (e.g., Targeted Wage Subsidy) as your firm is responsible for paying the assessment on those earnings (see figure #5). How do I pay my assessments? Paying assessments Current year assessments are due on April 1 of each year. Prior year assessments, or current year assessments invoiced after April 1, are due within thirty (30) days of the invoice date. Employers may contact us to request a deferred payment plan if they find it difficult to pay their full current year assessment. If assessments are not paid on or before the due date, the employer will be charged interest at the end of each month on the outstanding balance. The interest rate is set on January 1 each year at a rate of prime plus 5 percent. An interest free deferred payment plan is available to employers who had less than $54,000 in assessments in the previous year. A $50 fee will be charged for payments returned by the employer s bank. The Commission has an automatic lien on all assets of an employer for unpaid assessments. In addition, the directors of an incorporated company may be held liable for the outstanding assessments and legal action can be taken. The Commission will pursue collection and legal action against employers who do not pay their assessments. #4. SAMPLE CALCULATION Deduction for earnings reported to other Canadian boards Employee name Gross earnings Earnings reported to other Canadian boards Jane Doe $17,000 $5,000 Jon Hancock $22,000 $8,000 Ron Smith $40,000 Total deduction - earnings reported to other boards (sum earnings reported to other Canadian boards) $4,000 $17,000 #5. SAMPLE CALCULATION HRSDC or HRLE deduction for eligible wage funding Employee name Funding Program Gross earnings Eligible program? HRSDC/Service Canada wage funding (eligible funding program) John Doe Skills Link $18,675 $8,675 Jane Smith Career Focus $2,400 $1,200 Total deduction - HRSDC or HRLE Canada eligible wage funding (sum eligible HRSDC or HRLE Canada wage funding) $9,875 Page 7

13 Payment methods Pre-authorized debit payment plan This is the easiest way to ensure your payments are made on time. Payments are withdrawn from your bank account on the date(s) and in the amount(s) that you authorize. You must contact us to set up a payment plan or whenever a revision to an existing plan is needed during the year to cover your new balance. Mail Simply return the perforated portion of your invoice or statement with your cheque or money order. In person You can pay by Interac, cheque, money order or cash at one of our offices: St. John s Forest Road Corner Brook 2 Herald Avenue Grand Falls-Windsor 26 High Street Financial institutions If you pay your account through a financial institution, you should check to determine the number of days your payment must be made prior to your due date to ensure the payment reaches us on time. You can pay in-person at most financial institutions by presenting your invoice or statement with your payment. Contact your financial institution to see what electronic payment services they offer. When setting up an electronic payment, it is important that you select the NL WORKPLACE HEALTH, SAFETY & COMP COM. Otherwise your payments may go to another province and you will be charged interest. Deferred payment plans You may request a deferred payment plan that will allow you to pay your current year assessment on an installment basis within the current year. You must contact us to arrange the payment plan before your payment is due. All prior year assessments must be paid in full within 30 days of the invoice date. To be eligible for any deferred payment plan, employers must have submitted payroll statements with the required information for all years, provided a reasonable estimate for the current year and have an annual assessment of $50 or more. Failure by an employer to meet their payment plan may result in collection and legal action being commenced by the Commission. Employers with an annual assessment of less than $54,000 in the previous year Once approved by the Commission, these employers may pay their current year assessment and levy by monthly installment payments from April 1 to October 1 on the first of each month by pre-authorized debit only. No interest will be charged from April 1 to October 1 if employers comply with this payment schedule. Employers who default on any payment in this schedule will be charged interest monthly on the outstanding balance until such time as any missed payments have been made and the account is on track again with the original payment schedule. Employers with an annual assessment of $54,000 or more in the previous year Once approved by the Commission, these employers may pay installments from April 1 to December 31. Interest will be charged monthly on the outstanding balance. Payments may be made by either pre-authorized debit or post-dated cheques, paid either: quarterly the first of each quarter; monthly the first of each month; Semi-monthly the first and fifteenth of each month; bi-weekly every two weeks on the same day; weekly the same day each week. For further information regarding payment arrangements contact us at: , or toll free in Canada at: Page 8

14 Collection and legal action The Act gives the Commission the legal right to collect assessments from employers who are required to register for workers compensation coverage in this province. Through legislation, the Commission automatically has a lien on all assets of an employer for unpaid assessments. The Commission is not required to go to court to take action on that lien. When an employer does not pay their assessments or make suitable payment arrangements our collection staff may visit, phone or write the employer in an attempt to make a payment arrangement that is agreeable to both the employer and the Commission. If an agreement cannot be reached, we will proceed with legal action to collect the outstanding balance. Legal action can include garnishing bank accounts, third party attachments and seizure and sale of company assets which could impact your credit rating. The cost of such legal action is the responsibility of the employer. In the case of incorporated companies, if the corporation fails to pay its assessment, the directors of the corporation at the time of default are jointly and individually liable to pay the assessment. In the event that we pursue a director in relation to the outstanding assessments, the Commission may execute the same legal actions against the directors as it did against the company. It is important that you contact us to discuss your payment options. Managing your account An important part of the Commission s relationship with employers is maintaining accurate information about each firm. By having the right information, we are able to calculate fair and accurate assessment rates and to correspond with employers about issues and opportunities that affect their firm. Therefore, employers are responsible to notify the Commission of any changes to their operation throughout the year, including: Annual reporting Annual reporting helps the Commission maintain accurate information about a firm. Most employers are assessed on payroll and must submit their annual employer statements to the Commission by February 28 each year. Failure to complete and submit these forms by February 28 will result in forfeiture of your PRIME refund(s) and a delay in reporting penalty, which ranges from $50 to $2000 depending on the assessment value for that year (see figure #6). In early January, a package is sent to each registered employer. The package contains the following statements: employer payroll statement; occupational health and safety statement(s); employer contractor statement. The Employer Payroll Statement is a mandatory form and is used to:report your actual assessable earnings for the previous year; provide an estimate of assessable earnings for the coming year; identify if your firm hired contractors and/ or will hire contractors; determine your eligibility for PRIME refunds; and identify changes to your business information. The Occupational Health and Safety Statement is a mandatory form and is used to identify information about your firm s workplaces; to monitor compliance with occupational health and safety legislative requirements in NL; and to verify your firm s entitlement to PRIME refunds. The Employer Contractor Statement is a mandatory form if you hire contractors and is used to report each contractor s name, mailing address, telephone number, type of work performed, total contract value and labour value. Page 9

15 #6. Delay in Reporting Penalties Assessment Amount Penalty $ 50 - $ $50 $ 1,000 - $ 4, $100 $ 5,000 - $ 49, $500 $ 50,000 - $ 99, $1,000 $ 100,000 and over...$2,000 Quarterly reporting (fish buying and pulpwood & sawlog harvesting) Employers involved in either fish buying or pulpwood and sawlog harvesting, must report quarterly and are subject to quarterly late reporting penalties. The quarterly statements are mailed out to employers in these industrial classifications 30 days before the reporting deadlines. Failure to meet the quarterly reporting deadlines will result in late reporting penalties (see figures #8 and #9 on page 11) and for employers in pulpwood and sawlog harvesting, it will result in a forfeiture of their PRIME refund(s). Payroll adjustments In addition to completing the annual Employer Payroll Statement, you are also required to update your estimate throughout the year. We recognize that your number of workers or workload can change during the year. If you need to adjust your current year s payroll estimate, you must advise us in writing. Failure to do so may result in an underestimating penalty when you file your Employer Payroll Statement in the following year (see figure #7). If the actual earnings reported by the employer for the prior year is 25 per cent more than the estimate, an underestimating penalty will be charged. The penalty is calculated by subtracting 125 percent of estimated earnings from the actual earnings and multiplying by the assessment rate for the year. The penalty will be 10 per cent of that assessment (see figure #7). If you have a Deferred Payment Plan, you will need to contact us to have it updated when your payroll changes. Changes to your business activities Any change to your business activities may affect your classification and the rate that you pay. #7. SAMPLE CALCULATION - Underestimating penalty For example, (assuming a rate of $3.18 per $100 of payroll) an employer who provides a $100,000 estimate and does not update their estimate throughout the current year will receive a penalty of $ when they report their actual payroll of $230,000 on their Employer Payroll Statement. Assessment based on Employer s Actual Payroll Assessment based on Payroll estimate x 125% Difference $230,000 x 100,000 x $3.18/ % x $3.18/100 $7, , , Underestimating Penalty $3,339 x 10% $ Page 10

16 #8. Quarterly Reporting Requirements Statement Reporting period Reporting deadline 1st Quarter January 1 - March 31 April 15 2nd Quarter April 1 - June 30 July 15 3rd Quarter July 1 - September 30 October 15 4th Quarter October 1 - December 31 January 15 #9. Late Reporting Penalties: Quarterly Assessment Amount Penalty $ $ $12.50 $ $ 1, $25.00 $ 1, $ 12, $ $ 12, $ 24, $ $ 25, and over $ Restructuring If your business has been incorporated, unincorporated, or has been restructured in any other way, it is important that you contact us as it may change your reporting requirements. Contacts You are asked to provide us with the names of individuals that we contact for various purposes at the time of registration or when setting up for the web. If any of these individuals leave your organization, it is important that you advise us and provide the name of the new person who will be filling that role. Otherwise individuals who have left your organization may still be able to access or obtain information on your account. It is also important that you inform the Commission of any changes to your mailing/site addresses or telephone numbers in order for us to have your most up-to-date contact information. Change of ownership You should inform the Commission if your business has been purchased or transferred to a new owner or if you are the new owner. A new owner may be responsible for any unpaid assessment amounts of the previous employer. You can request an audit to ensure you are aware of all liabilities. Closing your operation You should contact the Commission as soon as possible if your firm ceases business operations. You will have to report your firm s actual payroll, in writing, from January 1 of the current year to the date operations ceased. We will then adjust your assessment accordingly. We may send an auditor to review your accounting records so that final adjustments can be made to the account. If your actual payroll is less than originally estimated, you may be entitled to a refund. Records to be kept Employers are required to maintain accurate financial records including records for all employees and information related to contracts. These records must be retained for six years so that they can be verified by the Commission. Page 11

17 Special Coverage Optional personal coverage (OPC) This coverage can be applied for by proprietors, partners and independent operators in accordance with the following terms: 1. Premiums for the period of coverage must be paid in full at the time of application. 2. Coverage is in effect from the date of receipt of the application and payment and approval by the Commission or from the coverage date requested in the application, whichever is latest. 3. Coverage automatically expires on December 31 of each year, or on the date specified on the application, whichever is earliest. 4. In the event of a work-related injury, proof of earnings must be submitted with a claim for lost-time benefits. Benefits will be based on the actual amount of earnings loss, but in no case will exceed the amount of coverage requested or the maximum compensable earnings specified by the Act. 5. The maximum coverage purchased cannot exceed the maximum compensable earnings specified by the Act (e.g., for 2011, the maximum coverage is $51,595 per year or $ per day). 6. The minimum coverage is $12, per year or $32.88 per day and the maximum period of coverage is January 1 to December 31. The minimum period of coverage is 28 days. There is also a nonrefundable minimum assessment of $50. Figure #10 provides a sample calculation for Optional personal coverage. To obtain personal coverage, contact the Commission and complete an independent operator questionnaire. If it is determined that you are an independent operator, the Commission can send you an optional personal coverage application form to complete and return with the appropriate premium. Note: All optional personal coverage forms must be signed by the applicant. For new applicants, please contact an Employer Registration Representative at: (709) For renewal of existing coverage, please contact an Employer Assessment Representative at: (709) Householder coverage Householder coverage is non-compulsory coverage that can be applied for by a householder when hiring other individuals to do work in or around the residence of the householder in accordance with the following terms: 1. Premiums for the period of coverage must be paid in full at the time of application. 2. Coverage is in effect from the date of receipt of the application and payment and approval by the Commission or from the coverage date requested in the application, whichever is latest. 3. Coverage automatically expires on December 31 of each year, or on the date specified on the application, whichever is earliest. 4. Coverage is only extended for the worker(s) listed on the householder coverage application form. #10. SAMPLE CALCULATION Optional Personal Coverage Example: the 2011 base rate for plumbing is $2.66 for every $100 of payroll. This means that a plumber who has been deemed by the Commission to be an independent operator and would like to purchase the maximum optional personal coverage for the minimum period of time would pay a total assessment of $ in Amount of Daily Coverage x Number of days x Assessment Rate/100 = Total Premium $ x 28 days x 2.68/100 = $ Page 12

18 5. The minimum period of coverage is 28 days and the minimum coverage is $ The maximum coverage is the maximum compensable earnings as specified by the Act (e.g., for 2007, the maximum compensable is $48,425 per year per worker or $ per week), and the maximum period of coverage is January 1 to December 31. There is a non-refundable minimum assessment of $ In the event of a work-related injury, proof of earnings must be submitted with a claim for lost-time benefits. Benefits will be based on the actual amount of earnings loss, but in no case will exceed the amount of coverage requested or the maximum compensable earnings specified by the Act. Student coverage If you are directly paying students to work in your business, they are considered to be your workers. You must pay the Commission assessments on their earnings and they are covered in the event of a work-related injury. If your students are not being paid by your company but are on a work-term from any of the educational institutions listed below these students are covered under the Act by the provincial Department of Education in the event of a work-related injury. The employer does not have to pay assessments and is protected from liability under the Act. Memorial University of Newfoundland College of the North Atlantic Centre for Nursing studies, Eastern Health Care Corporation Western Regional School of Nursing, Western Health Care Corporation a School as defined by The Schools Act, 1997 If you are hiring students and the funding is coming from HRSDC/Service Canada, the students are covered under the Act. You are required to include these earnings on your Employer Payroll Statement and you may be allowed to deduct the amount of HRSDC/Service Canada wage funding from your total payroll (see HRSDC/Service Canada wage funding on page 6). If you allow individuals who are on a federal-government program or the Student Work and Services Program (SWASP) to complete unpaid, on-the-job training at your business, you should check with the Commission to determine whether these students are covered under the Act. If students are participating in an unpaid work-term from a private educational institution or out-of-province educational institution, they are not covered under the Act. Therefore, the employer is not protected from liability, and a civil action may be possible in the event of a workplace injury. If students do not fall into one of the previous scenarios, or you are not sure which scenario best describes your situation, contact the Assessment Analyst at: (709) Out-of-province coverage Section 51 of the Act provides compensation for the workers of an employer in NL who are injured outside the province in the course of their employment. Generally, in order for coverage to be extended, the following conditions must be met: 1. The employer must be registered with the Commission, have a base of operations in the province, and continue to employ persons in the province while the worker is employed outside the province. 2. The worker will have worked for Page 13

19 the employer in this province prior to being assigned outside and will continue to work for the employer upon their return to NL. 3. The residence and usual place of employment of the worker is NL. 4. The worker remains on the payroll of the employer in NL while employed outside and assessments must be paid on those wages. 5. The worker and/or his/her dependents are not entitled to compensation under the law of the place where the injury occurs. It is important for employers to check with the workers compensation authorities (if applicable) in the jurisdiction where the worker is sent to determine if registration is required in that jurisdiction. 6. The work outside the province is of a temporary nature. 7. The employer must not have a permanent place of business in the other jurisdiction. Cases outside these guidelines will be considered on an individual basis. Even though the Commission extends compensation coverage to the workers of an employer in NL while working outside this jurisdiction, the immunity from suit protection provided by the Act is only valid inside the boundaries of NL. Requests for out-of-province coverage can be faxed to: (709) or inquiries can be directed to the Assessment Analyst at: (709) The request must include: the employer s name; firm number; worker(s) name(s); worker(s) address(es); the duration of the work outside the province; the jurisdiction where the work will be performed and confirmation that outof-province conditions have been met. Industrial classification system Classification system The Commission s classification system is based on Statistics Canada s Standard Industrial Classification (SIC) system, which has been modified to better reflect the business environment in NL. All registered employers are assigned to a Newfoundland Industrial Classification (NIC) code based on the description of industry they provide on their registration form. This classification encompasses all work incidental to the production of goods and services provided. Incidental is where an operation, regardless of whether separated by location or payroll, exists to service the primary industry of the firm. There are over 600 NIC codes; however, for many of these, the payroll and cost experience are not stable enough to allow a fair assessment rate to be calculated. Because of this, the Commission organizes the NIC codes into industry groups. The Commission currently has 80 industry groups. In creating industry groups, we consider two main factors: similarity of business activity and cost experience. The claim cost experience for each NIC code is examined every year to ensure that the code is still in the appropriate industry group. If the cost experience changes significantly, the NIC code may be moved to a more appropriate industry group. Multiple classification If an employer is operating in two or more distinct industries, the Commission may consider classifying the employer in two or more separate NIC codes. Employers who qualify for multiple classification will have two or more employer accounts. Page 14

20 We permit separate NIC code classifications only on the basis of industrial undertaking, not on the basis of the workers occupations. Separate NIC codes are not permitted if the operation or activity is a supportive, inescapable or ancillary part of the firm s primary industry. For example, a manufacturing firm which maintains a sales division or sales outlet to sell its own products is not permitted a separate sales category; rather the sales are considered an inescapable part of the firm s manufacturing operation. To qualify for multiple classification, your firm must meet the following criteria: the operation must be one that is performed by specific personnel as their sole function; separate payroll records must be kept for each operation; the operations must generate revenue independently of each other; the services of each operation must be offered to the general public or to non-affiliated companies; the operation must not be an incidental or a supportive part of the firm s primary industry. Please note that the primary responsibility to advise the Commission of a change in industrial classification or other aspects of the business rests with the employer. If you need further assistance, contact our Financial Analyst at: (709) Base assessment rates Base assessment rates for each industry group are established each year based on an analysis of cost experience for injuries that occurred in the five previous years. For example, for the 2012 rates, cost experience for injuries that occurred between 2006 and 2010 were used. Costs in 2011 were not used because the rates were calculated in 2011 and the year was not complete. However, adjustments made in 2011 prior to the rates being calculated and relating to payments made between 2006 and 2010 are included. Employers typically receive confirmation of their base assessment rate for the following year in October or November of the current year. Assessment rates by NIC code are available in the Commission s Assessment Rate Book, which is published annually. The Rate Book can be obtained by contacting a Commission office in St. John s, Grand Falls-Windsor, or Corner Brook. A copy is also available on our website at: PRIME PRIME is the Workplace Health, Safety and Compensation Commission s new employer incentive program. The program has two parts: the Practice Incentive and Experience Incentive. Practice Incentive The Practice Incentive recognizes employers for their good practices in the areas of occupational health and safety and return to work through a 5 percent refund on average annual assessments. Employers who meet PRIME s Practice Incentive requirements will be eligible for further refunds in Part II of PRIME, the Experience Incentive. The Experience Incentive recognizes employers for reduced accidents and injuries in their workplaces. Your first step is to comply with PRIME s Practice Incentive requirements. In early January, you and all other employers in the province will receive an Employer Payroll Statement. On this statement, you will be asked to answer questions concerning your health and safety and return-to-work practices in your workplace(s). There are five questions: 1. Do you have policies in occupational health and safety and return to work? 2. Do you have a trained health and safety committee(s) and/or representative(s)/designate(s)? Page 15

21 3. Do you have an injury reporting system? 4. Do you have the foundation of an occupational health and safety program? 5. Do you have the foundation of a return-to-work program? All employers must answer the first three questions, medium-sized employers must answer the first four and large employers must answer all five. To determine your category and your specific Practice Incentive requirements, go to and click on PRIME. Experience Incentive Employers who meet PRIME's Practice Incentive requirements will be considered eligible for further refunds in Part II of PRIME: the Experience Incentive. Only those employers who meet their Practice Incentive requirements can move on to receive refunds under the Experience Incentive. The work you do to earn a five per cent practice refund should lead to a healthier, safer workplace and getting injured workers back to work quickly and safely. The result should ultimately be reduced workplace accidents, injuries and lower claim costs. How the Experience Incentive works The Commission will take into account your past payroll assessments and industry classification and assign your organization an experience incentive range for the current year. This range is an estimate of the Commission's expectation of your claim costs in the year. Your range will be communicated through your annual payroll assessment invoice and your monthly PRIME status reports. Page 16

22 If your total claims costs fall below the bottom of that range at the end of the year, you will receive a refund; if your costs are higher than the top of the range, you may be required to pay a charge. If your costs fall within the range, there will be no refund or charge applied. Even if you are not eligible to receive a refund under the Experience Incentive because you did not earn the Practice Incentive, your firm will still be subject to charges, if applicable, for having total claims costs higher than the top of the range. Further details on the Experience Incentive, including your claims cost range for the year, will be sent to you after we receive your Employer Payroll Statement information. Hiring contractors Hiring individuals If you hire individuals under contract, they may be considered your workers. The Commission has exclusive jurisdiction to determine which individuals are independent operators and which individuals are workers. Please call: (709) when you hire an individual under contract to determine the individual s status with the Commission. If it is determined that they are your worker, you must report and pay assessments on the labour portion of the contract. As with any worker, you cannot deduct the assessment amount from your payment to them. If it is determined that they are an independent operator, you will not be charged assessments on the labour portion of the contract. Independent operators do not receive mandatory coverage under the Act but they may apply for optional personal coverage. If the individual does not have optional personal coverage for the full period of your contract, they have the right to file a civil suit against you in the event of a work-related injury. Hiring non-incorporated companies If you hire a non-incorporated company, coverage may not exist for the owners of that company, if they are the ones performing the work for you. However, they may apply for optional personal coverage. Under the Act, these companies are only required to register if they have employees and/or sub-contract work. Hiring incorporated companies All incorporated entities operating in NL must register with the Commission. Coverage is mandatory for all workers, including the owner, directors or managers, even if the owner is the only worker. Liability for assessments Under the Act, an employer (known as the principal) can be held liable for the assessments owing by their contractor/ sub-contractor on the labour portion of a contract of service. Contracts of service are defined as those services that are part of the principal s primary industry. For example, a contract of service would exist when a horticultural company sub-contracts out tree pruning. When the contractor/sub-contractor is not registered with the Commission or is registered with the Commission but has not met their reporting or payment requirements, the principal will be held liable for insuring the workers of the contractor/sub-contractor and paying the related assessments. If your contractor/sub-contractor is not registered or is not in good standing with the Commission, you are permitted, under Section 120 of the Act, to withhold payment from them for the assessment amount that the Commission will charge you on the labour portion of the contract (at the contractor/subcontractor's rate). You can contact us at: and provide us with the contract information to obtain this amount. To avoid being charged assessments for your contractors/sub-contractors, you should obtain a clearance letter from the Commission each time you Page 17

23 award a contract and before you make final payment to the contractor/ sub-contractor. Clearance letters Clearance letters will protect you from potential liability and are required in two situations: when the employer is performing contract work and when the employer is involved in a legal transaction. Contract Work Employers who hire contractors or who work as contractors, will often need a clearance letter from the Commission as part of their contract requirements. A clearance letter confirms that an employer is in good standing with the Commission (meaning the firm is registered and has an up-to-date account). A clearance letter releases the principal from liability (under Section 120 of the Act) for unpaid WHSCC assessments for the contracts performed by the sub-contractor in the period for which the clearance letter is valid. This period is normally 45 days from date of issue. Either the principal or the contractor can contact the Commission to request the clearance letter. Legal Transactions To protect the other party involved in a legal transaction, lawyers will request clearance letters from the Commission. For most legal transactions, an audit is required before issuing a clearance letter as this is a self-reporting system. To ensure there are no delays obtaining a clearance letter to finalize your legal transaction, you should contact the Audit Team Lead at: (709) as soon as you are aware that a legal transaction may occur. Sale of business, shares or any assets Failure to obtain a clearance letter may leave the purchaser liable for any assessments owed by the previous owner. In addition, the Commission could seize assets as it has an automatic lien on all assets of an employer for any unpaid assessments. Financing A financial institution wants to ensure that there are no potential liens on the security used in a financing transaction as the Commission has an automatic lien on all assets of an employer for any unpaid assessments. Note: Clearance letters cannot be issued for the sale of a business or other assets if you have a deferred payment arrangement. We require full payment to ensure there is no lien on the assets that are being transferred. How to request a clearance letter We recommend all clearance requests be made online. If you are unable to use our online service, you can also request a clearance letter by calling: (709) or by faxing the request to: (709) Connect web portal The Commission s web services portal, WHSCC connect, is open for business. In order to connect, employers should complete a registration form and submit it to the Commission. To view the portal and register, go to the Commission s home page and click on connect. Online services available include: requesting clearance letters; managing sub-contractors lists; viewing employer account information and health care cost reports; and submitting and managing Occupational Health and Safety committee minutes. A support number has been added to deal with questions and inquiries on connect at: and As the Commission rolls out web services over the next few years, over 70 services will be offered online, to enhance services to all stakeholders. Assessment audits The Commission s assessment auditors regularly visit employers in the province to ensure their assessment reporting is Page 18

24 correct and that their classification best reflects the firms activities. Financial audits help us ensure employers are assessed fairly and equitably and that all employers are meeting the reporting requirements of the Act. All accounting and financial records must be made available to the Commission s auditors including financial statements. Financial audits frequently asked questions Who is audited? Employers can be audited for some of the following reasons: the employer is involved in a legal transaction and the lawyer has requested a clearance letter which is required to finalize all legal transactions including financing; the employer has requested a refund greater than $1,000; the employer is a part of an industry group being reviewed by the Commission; the employer or an employee has reported an injury and additional information is required to make a decision on the claim; the employer has been randomly selected for an audit. How should I prepare for an audit? An auditor will contact you to arrange a mutually agreeable time and place to conduct the audit. Be sure to have representative(s) available during the audit that are able to respond to questions that arise. What types of information do we need to complete an audit? The types of records we would normally review include: financial statements that cover the calendar years being audited; trial balance and general ledger; T4s, T4As, T5s and associated summaries; payroll records for all employees; cheque disbursement journals, bank statements and cancelled cheques; accounts payable journals; sales invoices; contracts for HRSDC or HRLE program funding and payment details; other WCB's invoices and annual reports for wages reported to other jurisdictions; record of casual labour; record of contract labour, contracts and invoices; fish buyers T4s and Summary, fish purchase journals, fish landings reports, and general ledger detailed listings for requested accounts; log harvesters logging permits, Department of Natural Resources slips and logging payroll journal. Note: This is not an all-inclusive list and all accounting records must be available for review including original source documents. What should I expect from an auditor? We require our audit staff to: conduct themselves in a professional and business-like manner; know our workers compensation system and policies; be a reference source for employers; educate employers about their reporting obligations; be a liaison between employers and other Commission staff. How many years can we audit? Generally, we audit the past three years however, we can audit up to six years including the current year. How long will an audit take? Generally the size and complexity of Page 19

25 your operation as well as the number of issues that arise will determine how long it takes to complete an audit. What happens during the audit? An audit will either involve you sending financial records to us for review or having the auditor do an on-site visit. The auditor will review the financial records, update demographic information for our database and review your business activity to ensure you are properly classified. What happens after the audit? The auditor will review their preliminary findings with you at the end of the audit. If you have any questions or concerns, they should be addressed with the auditor at that time. If any adjustments were made during the audit, you will receive a new invoice outlining the adjustments that were made. You may also request a copy of the audit for your records. Injury Costs Transfer of injury costs If an employer feels that an injury to his worker was due to the negligence of another employer and/or his worker, the injury employer may request that the Commission conduct a negligence review. If the Commission s review shows that another employer and/or his worker(s) was partially or wholly negligent and that negligence resulted in the injury, the Commission may transfer all or part of the cost of the injury from the injury employer s account to the negligent employer s account. Requests for a transfer of injury cost must be in writing within six months of the date of injury, and provide details of why the employer feels another employer was negligent. Direct requests to: Workplace Health, Safety and Compensation Commission Assessment Services Department Attn.: Manager of Assessments P.O. Box 9000, St. John s, NL AlA 3B8 Second injury relief When the total or partial cost of an individual claim is redirected from an employer s claims cost record to a general account, the account is known as the second injury relief account. For example, if an employee is injured while working for employer A but a previous work injury sustained while working for employer B is now prolonging or increasing the costs of the current work related injury, employer A may be relieved of all or part of the claims cost through the second injury relief fund. Also, relief will be given when a new work injury or recurrence of a previous injury occurs while a worker is participating in a Commission-sponsored labour market re-entry program. The Compensation Services Department will determine when and to what degree, second injury relief may be provided. For more information contact the Commission. Injury Prevention Prevention Services The services provided by the Prevention Services Department are open to all firms in the province, regardless of what occupational health and safety legislation applies to their workplace (i.e. provincial, federal, inter-provincial or international). For more detailed information on the services and programs offered, please contact the Prevention Services Department at: (709) , or visit the Commission s website at: The Commission is committed to assisting employers reduce injuries and illnesses in the workplace along with their associated claims costs. This is accomplished by providing employers with expertise establishing Occupational Health and Safety Committees and developing OH&S programs and return-to-work practices. Page 20

26 Occupational Health and Safety Committees/Worker Health and Safety Representatives/Workplace Health and Safety Designates The appointment and training of OH&S committees, worker health and safety (WH&S) representatives and workplace health and safety (WH&S) designates is a legislative requirement under sections 37, 41 and 42.1 of the Occupational Health and Safety Act. OH&S committees, WH&S representatives and designates provide a forum for communication between the employer and workers to address health and safety concerns in the workplace. In an effort to reduce workplace accidents and injuries, they can identify and review health and safety issues, make recommendations for corrective action and evaluate health and safety in their workplace. In brief, the legislative requirements are as follows: 1. Where less than 10 workers are employed at a workplace, a worker not connected with management should be appointed as the WH&S representative. In circumstances where a WH&S representative is impractical and less than six persons are employed at the workplace, an employer may appoint a WH&S designate. The WH&S designate can be the employer, owner, or supervisor. Where the employer is the WH&S designate, duties and responsibilities of the employer under the Occupational Health and Safety Act still apply. 2. A workplace with less than 10 workers is required to have a WH&S representative or a WH&S designate trained where applicable. 3. Where 10 or more workers are employed at a workplace, an OH&S committee is required. 4. The OH&S committee may consist of two to 12 members. At least half the members shall be elected by workers with an employee co-chair. The remaining members shall be appointed by the employer with an employer co-chair. 5. A workplace having 50 or more workers is required to have all the OH&S committee members trained. A workplace having 10 to 49 workers is required to have OH&S committee co-chairs trained. 6. A list of OH&S committee members or the name of the WH&S representative or designate shall be posted in a conspicuous place at the workplace. 7. OH&S committee meetings shall be held a minimum of every three months and during work hours as part of the job. 8. Minutes of meetings are to be posted in the workplace and a copy is to be forwarded to the Commission. 9. The OH&S committee shall participate in workplace inspections. 10. The OH&S committee, WH&S representative or WH&S designate shall be consulted on the development of an OH&S program/policy. Note: Workers refers to both management and workers but excludes owners/operators/partners. Employers are required to consult with the OH&S committee, WH&S representative, or WH&S designate regarding workplace inspections and other OH&S issues. They are to respond in writing within 30 days of receiving a recommendation from the OH&S committee/wh&s representative and the WH&S designate and provide written updates regarding implementation. The Prevention Services Department has set standards for OH&S committee/ WH&S representative and WH&S designate training. For information on these training standards contact the Prevention Services Department at: (709) or visit the Commission s website at: Page 21

27 To find out how you can meet your legislative requirements contact the OH&S Branch of the Department of Government Services at: or The Prevention Services Department offers an orientation session to new employers regarding the education and awareness of workplace health and safety. The purpose of the session is to explain the roles and responsibilities of OH&S committees, WH&S representatives and designates in dealing with workplace health and safety issues and how they can work to reach their health and safety goals. Participants will use the principles learned to develop a terms of reference, guide the meeting process, plan workplace inspections and promote health and safety throughout the workplace. Once training is provided, the Commission will continue to monitor activities by reviewing all minutes submitted. Each OH&S committee will be assessed and further intervention will be recommended where required. New employers registering with the Commission will receive information regarding the provision of an orientation session. Occupational Health and Safety Programs The Commission believes that all accidents are preventable and that root causes of every accident can be determined and controlled. The development and implementation of an effective health and safety program is the single most important step in controlling and eliminating accidents. They not only prevent accidents and injuries but improve employee morale and productivity, maintain customer satisfaction and increase competitiveness, all of which have a positive impact on the bottom line. As of January 1, 2002, workplaces with 10 or more employees are required to develop a written occupational health and safety program (section 36.1 of the Occupational Health and Safety Act). Workplaces with less than 10 employees are required to have an occupational health and safety policy (section 36.2 of the Occupational Health and Safety Act). Details are outlined in the Occupational Health and Safety Regulations. The success of the program or policy depends on the clear and visible commitment demonstrated by management. Staff of the Prevention Services Department are available to provide assistance in this regard. Health and safety advisors and ergonomists provide consultation and advice to employers regarding their legislative requirements. Information sessions designed to help employers develop an OH&S program are held throughout the year. Additional health and safety information can be obtained from the Commission s website. Ergonomics Ergonomics is the practice of fitting workplace conditions and job demands to the capabilities of the working population and is key to preventing soft tissue injuries. This is achieved through the inclusion of ergonomics in each component of your occupational health and safety program. The Prevention Services Department has an ergonomist on staff to offer assistance to businesses that would like to strengthen the ergonomics components of their program. The implementation of an active health and safety program in business, including ergonomics considerations, will help prevent injuries and reduce costs. Young workers Young workers are at risk of being injured on the job since they are new to the workforce and generally unaware of their OH&S rights and responsibilities. It is important that they receive proper training and supervision to ensure their health and safety on the job. There are several publications regarding young workers that are available on the Commission s website at: (under Prevention Services.) Page 22

28 When an injury occurs Worker s responsibility A worker should notify the employer immediately of an injury which occurs in the course of his/her employment. If the injury disables the worker for longer than the day on which the injury occurred or if the worker does not miss work but needs medical treatment or dental aid, the worker should complete and return a Form 6 Worker s Report of Injury. This form should include detailed and accurate information (e.g. full name, date of birth, Social Insurance Number, MCP, etc.) and be completed as soon as possible to avoid any undue delays in processing and adjudicating the claim. Workers may fax their form as soon as possible to: (709) or toll-free Workers may also mail their form to the Workplace Health, Safety & Compensation Commission to: Forest Road P.O. Box 9000 St. John s, NL A1A 3B8 An authorized representative consent form must be signed by workers when they wish to allow another individual to act on their behalf and have access to their claim information. Employer s responsibility The employer must submit a completed Form 7 Employer s Report of Injury to the Commission within three days of every injury which results in losttime or when a worker requires medical treatment or dental aid. All applicable sections of the Form 6 Employer s Report of Injury are to be completed. Both forms can be submitted to the Commission using: connect online web service, by fax, or by mail. Failure to report a medical aid only claim within three days may result in a $100 penalty. Failure to report a lost-time claim within three days may result in a $200 penalty. All penalties are directly charged to the employer s assessment account. The employer is required to pay an injured worker s normal wages for the day on which the injury occurred. If the worker loses time from work longer than the day on which the injury occurred, the Commission will pay compensation beginning on the day following the occurrence of the injury. Medical evidence must support the lost-time and the lost-time must be related to the work injury. Should a work injury occur which prevents the employee from continuing his or her regular work the employer is responsible for the cost of transporting the injured worker to a place where medical attention can be obtained. Other appropriate transportationcosts will be paid by the Commission upon acceptance of the claim. Should you object to a claim that has been filed with the Commission, you are required to submit a written notice of the objection within 10 days after the date the claim was first reported to the employer. You must state the reason for the objection and provide a copy of the objection to the injured worker. The employer is also responsible for the cost of transporting an injured worker who requires medical attention to a place where the worker may receive medical attention. Other appropriate transportation costs will be paid by the Commission. Compensation Services The Compensation Services Department offers a comprehensive list of services and programs to employers throughout the province. Staff are available to assist employers of all sizes to meet their legislative requirements. For more information or to request assistance, contact the Commission at: or visit the Commission s website at: Benefits and assistance available to injured workers Wage-loss benefits The Commission pays wage-loss benefits for a compensable injury based upon 80 percent of the pre-injury net earnings. Page 23

29 The employer is responsible for the worker s full wages for the day of the injury. There is a limit on the amount of earnings insured called the maximum compensation ceiling under the Act. Reduction of wage loss may occur if garnishment of wages exist due to support enforcement or social assistance payments. The Commission may pay wage-loss benefits until a worker is 65. A worker who is 63 or older at the time of injury may receive benefits for a maximum of two years. Note: The Commission considers Canada Pension Plan disability benefits related to the injury and employer-sponsored pension benefits which a worker receives following a work injury as earnings and deducts them from the Compensation benefits. Other benefits paid by the employer during the period of disability may also be deducted. Health care The Commission pays reasonable health care expenses related to a workplace injury. These include physician fees, hospital costs, prescription drugs, physiotherapy, occupational therapy as well as Health care supplies such as crutches or prosthesis. The Commission also pays reasonable travel costs where appropriate including accomodations and meals. Return to Work Legislation Early and Safe Return to Work Effective January 1, 2002, all employers and workers are obligated under the Act to co-operate in the worker s early and safe return to suitable and available employment with the injury employer. Employers are required to: contact the worker as soon as possible after the injury occurs and maintain communication throughout the period of the worker s recovery or impairment; provide suitable and available employment; give the Commission any information requested concerning the worker s return-to-work. the employer is also required to pay the worker s salary earned while performing suitable work. The Commission will pay the worker the differential if any, between the salary earned during the early and safe return- to-work process and 80 percent of net pre-injury earnings to the maximum compensable earnings level. If the Commission determines that an employer is not co-operating in the early and safe return-to-work activities and does not have a legitimate reason, the employer will be notified (verbally, if possible, and in writing) of the obligation to co-operate in early and safe return to work, the finding of non co-operation and the consequences of this finding. Where - within one week from the notification by the Commission - the employer fails to demonstrate cooperation an does not have a legitimate reason for not co-operating, the Commission shall levy a financial penalty on the employer not exceeding the cost to the Commission of providing the workers benefits, and may levy a penalty equal to the cost of return-to-work and labour market re-entry services during the period of non co-operation. Re-employ obligation 1. Where the worker is medically cleared for the essential duties of the pre-injury employment, the employer must re-employ the worker in the position held prior to the injury, or in analternative position hich is comparable in nature and earnings to the pre-injury employment. 2. Where the worker is medically cleared for suitable work but is unable to perform the essential duties of the pre-injury employment, the employer must offer the worker the first opportunity to accept suitable employment that may become available to the employer. Page 24

30 3. The employer must accomodate the work or workplce for the worker to the extent that the accomodation does not cause the emplyer undue hardship. A re-employment obligation exists if: i. the employer regularly employs 20 or more workers; ii. the employer and the worker had been in an employment relationship for a continuous period of one year immediately prior to the date of the worker s injury, and iii. the worker is medically able to perform the essential duties of the pre-injury employment (see Determining Essential Duties in this policy), or to perform suitable work. Re-employment penalties If the Commission determines that the employer has not fulfilled the reemployment obligation, the Commission shall levy a penalty on the employer not exceeding the amount of the worker s net average earnings with the pre-injury employer, for the 12 months immediately preceding the beginning of the loss of earnings as a result of the injury. Payment may also be made to the worker, up to a maximum of one year, as if the worker was entitled to compensation payments. Early Safe Return to Work (ESRTW) While early and safe return-to-work is the responsibility of the workplace parties, the Commission is available to provide advice and support, communicate with the workplace parties, monitor activities and progress, address compliance issues and offer dispute resolution. The employer is encouraged to arrange and pay for workplace accommodations for workers to facilitate a return to work. However, the Commission may cover these costs where the employer is unable to do so. Return-to-work program A return to work program is a documented process for communication and action in the event of a work related injury. The program should be designed to facilitate an injured worker s recovery and return to work as early and safely as possible in accordance with legislative and workplace requirements. A well designed return to work program may be used for all injuries regardless of their source. Re-employment penalties The Commission has identified six elements that are the basis of effective return to work programs. 1. Organizational commitment Commitment is one of the fundamental building blocks of an effective return to work program. Visible commitment from top management in an organization provides the support necessary to ensure the success of the return to work program. 2. Return to work planning Organizations that provide a consistent approach to return to work planning through a pre-defined process generally experience a higher success rate in returning an injured worker to work. 3. Injury reporting system Providing clear and consistent direction and information to management and employees following an injury can eliminate confusion and concern. 4. Documentation Developing policies and/or procedures is important to ensure that the return to work program is managed with consistency and accountability on a day-to-day basis. 5. Joint mechanisms for consultation Organizations that engage in joint and meaningful consultation between management and employees experience higher success and Page 25

31 satisfaction rates with their return to work program. 6. Evaluation and communication Evaluation is critical to identifying the strengths and weaknesses in the return to work program. Information obtained through an evaluation can be used to focus on continuous improvement. For detailed fact sheets on return to work programs visit the Commission s website at: (under publications) Penalties for non-compliance Employers who do not meet their co-operation and/or re-employment obligations will be subject to direct financial penalties. The Commission may levy a penalty not exceeding the cost of providing benefits, return to work and labour market re-entry services to employers who fail to co-operate in return to work. Employers penalties for failing to re-employ a worker could include a year s salary associated with the worker injured. The worker who does not participate in return to work efforts could see benefits reduced, suspended or terminated, with a finding non-cooperation. Workers who are unable to be re-employed with their injury employer will be offered labour market re-entry assessments and/ or plans to allow the worker to re-enter the labour market in suitable employment. Although the Commission pays for labour market re-entry assessments and plans, the cost is reflected on the employer s experience so early and safe return to work is the best option. Labour market re-entry (LMR) In cases where the pre-injury employer is unable accomodate an injured workers or has been found to be noncooperative in the early and safe returnto-work process or where the nature of the injury limits the worker s return to suitable employment, the Commission will consider a labour market re-entry assessment and plan which may involve the following programs. On-the-job training The Commission may sponsor on-the-job training programs to allow workers to obtain new skills to become employable with the injury employer or another employer. Employment readiness The Commission may provide employment readiness services, including wage loss to workers displaced from their job because of an injury but who are capable of reentering the workforce with their current skills. Services that may be available may include resume preparation, job interview preparation, and learning to access information on securing job opportunities. Academic upgrading/formal training This training allows workers to upgrade so they can re-enter the workforce or qualify for a training program. The Commission consults with injured workers to choose the most appropriate training program. Entrepreneur assistance The Commission may provide financial assistance to injured workers for selfemployment purposes if this is considered to be a reasonable and viable return to work option. A market impact analysis will be conducted before any selfemployment venture is approved. Extended earnings loss benefits (EEL) Workers may qualify for extended earnings loss benefits (EEL) following maximum recovery from their work injury if: workers are unable to earn as much as they earned before their injury or if it is determined that a worker will not be able to return to the workforce due the impact of the work injury. Workers may qualify for extended earnings loss benefits (EEL) following maximum recovery from their work injury if: workers are unable to earn as much as they earned before their injury or if it is determined that a worker will not be able to return to the workforce due the impact of the work injury. Page 26

32 Recurrence If an injured worker recovers from a workplace injury and returns to work but later the injury causes further lost-time or the worker requires reasonable medical treatment to remain at work, the worker may reapply for wage-loss benefits and/or health care services. Workers are required to report the recurrence to their employer as soon as possible giving full details. The employer is required to complete a Form 7 Employer s Report of Injury. The worker is required to complete a Form 6 Workers Report of Injury and the health care provider is required to complete a Form 8/10 reporting form (physican s Form 8/10, chiropractor Form 8/10c or phsiotherapy Form PR). All forms must be returned to the Commission for processing. If a former worker applies for a recurrence but no longer works for you, the Commission may still seek information from you. Subsequent reports The employer is required to notify the Commission when the injured worker is able to return to work. Prompt notification of an injured worker s return-to-work will help minimize overpayment of benefits. The Commission may also require the employer to submit further information about an injured worker in order to properly adjudicate the claim. To avoid any delays in processing and adjudicating a claim, the employer should report prompt, accurate and complete information. All forms to be completed by an injured worker or an employer can be obtained upon request from any of the Commission s offices or our website at: Permanent Functional Impairment (PFI) Award In addition to wage-loss benefits and health care benefits, a permanent functional impairment (PFI) award may be paid to compensate for a permanent loss of bodily function, i.e. amputation of a limb. The Commission determines the percentage of impairment by matching the physical findings with the Commission s PFI rating schedule which is based on the American Medical Association (AMA) guidelines for permanent impairment. A PFI award is calculated by multiplying percentage of impairment by the maximum compensable limit. A worker is eligible for a PFI assessment, after treatment and maximum recovery and may be reassessed if function deteriorates. Dependency benefits If a worker dies as a result of a workrelated injury or illness, there are benefits for their dependants. These benefits may include a lump sum award and monthly benefits, based on the deceased worker s compensable income. The amount, type and length of time when benefits are paid varies. For more information on dependency benefits, contact the Commission at: Investigations The Commission introduced an Investigation Policy in Investigative services ensure everyone who is part of the system uses it fairly. This includes employers, workers, staff and health care providers. If you have any concerns about abuse, you should contact the Commission s Fraud Referral Line at: Employer access to file information The Commission s policy on Information Protection and Access (GP-01) outlines Page 27

33 the types of claim information that may be disclosed to an employer, for example during return to work planning or the internal review process. Additional information may also be released if permitted by law or with the worker s written consent. Employers must identify the name of a specific person to whom the Commission may release information. An Authorized Representative Consent Form (Form 13) must be signed by an employer when they wish to allow another individual or agency to act on their behalf and have access to their file information. You may change or remove an authorized representative by completing another Form 13. The worker will be notified when claim information is released to an employer (or the employer s authorized representative). Vendor numbers Vendor numbers are unique identifiers assigned to employers and individuals who bill the Commission for the provision of products and services. Employers wishing to obtain a vendor number may do so by writing or faxing the Commission with their request. Before a vendor number is issued, a nonregistered company must contact the Assessment Department to determine if registration with the Commission is required. For information concerning the requirements to register with the Commission please call: (709) Faxed information should include full mailing address, contact person, phone and fax numbers, number of employees, and a general statement indicating the type of business operation. For more information regarding a new vendor number contact the Commission at: and by fax at: (709) or ask to speak to a medical aid clerk. Employers advisors Two employers advisors operating out of the office of the Newfoundland and Labrador Employers Council are available to provide impartial advice, assistance and training at no cost to employers in workers compensation matters including claims management, assessments, occupational health and safety (OH&S) and the review process. For further information please contact: Newfoundland & Labrador Employers Council; Attn: Employers Advisors; 133 Crosbie Rd. Suite 208 St. John s, NL A1B 1H3; Telephone: (709) ; Toll free: Fax: (709) Requesting a review The Commission makes decisions every day about assessments and benefit entitlement for injured workers. The Commission pays the costs of these benefits, but as an employer, you may see your assessment costs rise based on the cost of claims. If you do not understand a claim decision, ask the Commission employee responsible for the decision to explain it to you. If you still disagree or do not understand the decision, and have not received a decision letter, you can request a written decision from that individual. Internal review If you disagree with the written decision from the department, you can request an impartial internal review by the Commission s Internal Review Division. To proceed with an internal review, you must submit your request in writing, stating the reasons why you disagree with the decision within 30 days of the date you received the decision letter. When we receive your review request, we will send you a letter confirming receipt of your request. We will then send your request to an internal review specialist, who examines the file or issue to ensure all relevant information has been considered. Page 28

34 If clarification or additional information is necessary we will contact you. If you present new evidence, ensure that the original decision maker is made aware of it. The information may change their initial decision and an internal review may no longer be necessary. The internal review process does not involve hearings but your review specialist may want to meet with you and others as part of the review. Formal hearings are reserved for the external review process. If a request for review is related to an injured worker s claim, the worker s employer may access relevant claim information. The employer must make a written request for information and the Commission will determine the information relevant to the issue under dispute. Once the request goes through the internal review process, the internal review specialist will provide the Commission's final decision in writing within 45 days of receiving the request. Mail your internal review request to: Administrative Officer, Internal Review Workplace Health, Safety and Compensation Commission Forest Road, P.O. Box 9000 St. John s, NL A1A 3B8 External review If you disagree with the decision of the Commission s internal review specialist, you have the right to request an external review, which will be undertaken by the Workplace Health, Safety and Compensation Review Division (WHSCRD). This WHSCRD is independent of the Commission. Requests for external review must be made within 30 days from the date you receive the Commission s final internal review decision. Before proceeding to WHSCRD, you must have completed the Commission s internal review process. To request an external review, contact WHSCRD for more information at: Workplace Health, Safety and Compensation Review Division Dorset Building, 2nd Floor 6 Mount Carson Avenue Mount Pearl, NL A1N 3K4 Phone: (709) Toll Free: Fax: (709) Viewing your file Under Commission policy, you (or your authorized representative) can access your employer file. If the issue being disputed is about an injured worker s claim, you, as the employer, will be allowed to see only the information that is relevant to the disputed matter. You will not be able to view the worker s confidential information. All requests for information from a review file must be made in writing. Submit your request for file information to: Internal Review Clerk Workplace Health, Safety and Compensation Commission Forest Road, P.O. Box 9000 St. John's, NL A1A 3B8 Page 29

35 When a workplace injury occurs Page 30

36 Page 31

37 Page 32

38 Contact Information Assessment Services Department Account balances and payment arrangements St. John's (709) Grand Falls-Windsor (709) Corner Brook (709) Questioning an employer assessment decision (709) Auditing (709) Clearance letters (709) Director of Assessment Services (709) Employer payroll statements & invoices (709) Experience rating (709) Fish buyers & logging accounts (709) Optional personal coverage/householder coverage (709) Out of province coverage/student coverage (709) Manager of Assessments (709) Manager of Collections (709) PRIME (709) Rate classification, requests for statistics (709) Registration (709) Web Services (connect) (709) Other frequently used numbers Claims information (709) Employer s Advisor (709) Newfoundland & Labrador Employers Council Injury penalties (709) Form 6 & 7 requests (709) Prevention Services (709) Investigations Division Provincial Department of Government Services (709) Occupational Health and Safety Branch Fax numbers Assessment Services Department (709) Injury Reports (709) or Toll free numbers St. John's Grand Falls-Windsor Corner Brook PRIME Web Services (connect) To report a serious accident call: Toll free inquiry line Page 33

39

40 Workplace Health, Safety and Compensation Commission St. John s Forest Road P.O. Box 9000 St. John's, NL A1A 3B8 Telephone (709) Fax (709) Fax (709) Toll Free Grand Falls-Windsor 26 High Street P.O. Box 850 Grand Falls-Windsor, NL A2A 2P7 Telephone (709) Fax (709) Toll Free Corner Brook Suite 201B, Millbrook Mall 2 Herald Avenue P.O. Box 474 Corner Brook, NL A2H 6E6 Telephone (709) Fax (709) Toll Free Website