What is the WSIB?

The WSIB is an independent agency under Ontario’s Ministry of Labour, responsible for administering the Workplace Safety and Insurance Act (WSIA). It operates a no-fault insurance system, ensuring that employees receive compensation and support in the event of work-related injuries or illnesses, while employers are protected from lawsuits. The WSIB is entirely funded by employer premiums and covers over five million workers across more than 300,000 workplaces in Ontario.

Key Functions of the WSIB

1. Insurance and Compensation:

• No-Fault Insurance: The WSIB's no-fault system allows workers to receive benefits without needing to prove that their employer was at fault for their injury or illness. This system simplifies the process of obtaining compensation and ensures timely support for injured workers.
• Loss of Earnings (LOE): This benefit compensates workers for lost wages due to workplace injuries or illnesses. It begins the day after the injury and continues until the worker can return to their pre-injury job or reaches the age of 65.
• Non-Economic Loss (NEL): This benefit is provided to workers who suffer permanent impairments due to work-related injuries. It can be paid as a lump sum or on a monthly basis.
• Loss of Retirement Income (LRI): Workers who receive LOE benefits for 12 consecutive months are eligible for this benefit, which helps them save for retirement.

2. Health and Safety Promotion:

• The WSIB offers industry-specific health and safety information and resources to help employers create safer workplaces. This includes access to programs aimed at reducing workplace injuries and occupational diseases.
• Programs such as the Health and Safety Excellence program provide financial incentives for businesses that successfully implement effective health and safety practices.

3. Support for Return to Work:

• The WSIB facilitates the return to work for injured workers through case management, vocational rehabilitation, and other support services. This helps workers reintegrate into the workforce safely and efficiently.
• The Work Reintegration program is designed to ensure that injured workers receive the necessary support to return to suitable employment as soon as possible.

Guide to WSIB Compliance

1. Registration and Coverage

Most businesses in Ontario are required to register with the WSIB within 10 days of hiring their first employee. This includes sectors such as manufacturing, construction, transportation, and others. Registration involves providing details about the business and paying premiums based on the insurable earnings of the employees.

How to Register:

• Businesses can register online through the WSIB website, by phone, mail, or fax. The registration process involves submitting relevant information about the business and its employees, and calculating the premiums based on insurable earnings.

• Voluntary Coverage:
  • Even if your business is not required to register, you can opt for WSIB coverage voluntarily. This can provide additional protection and peace of mind for both employers and employees.

2. Reporting Workplace Injuries and Illnesses

Timely Reporting:

• Employers must report work-related injuries or illnesses to the WSIB within three days if the worker required medical treatment, was absent from work, or earned less than regular pay. Failure to report on time can result in penalties.

Accurate Documentation:

• It is essential to maintain detailed records of any workplace injury or illness. This includes documenting first aid administered, medical treatments provided, and any modifications made to the worker’s duties.

Forms Submission:

• Employers must complete and submit WSIB Form 7 for reporting injuries or illnesses. The injured employee must also complete Form 6 – Worker’s Report of Injury or Disease. These forms ensure that all necessary information is provided to the WSIB for processing the claim.

3. Paying Premiums

Premium Calculation:

• Premiums are calculated based on the type of business and the insurable earnings of employees. Employers must report their premiums regularly and make payments on time to avoid non-compliance fines.

Clearance Certificates:

• Contractors and subcontractors should obtain WSIB clearance certificates to confirm their good standing. This helps businesses avoid liability for unpaid premiums related to services or work done by contractors.

4. Health and Safety Programs

Implement Safety Programs:

• Establish and maintain workplace safety programs that comply with WSIB guidelines. This includes conducting regular training sessions, safety audits, and updating safety protocols to address any identified hazards.

Regular Reviews:

• Periodically review and update your health and safety policies to ensure they remain effective and compliant with current standards. Continuous improvement of safety measures can significantly reduce the risk of workplace injuries and illnesses.

Penalties for Non-Compliance with WSIB Requirements

Financial Penalties

1. Fines for Late Reporting

• Employers are required to report work-related injuries or illnesses to the WSIB within three days. Failure to do so can result in fines. The specific amount of the fine can vary based on the severity and frequency of the non-compliance.

2. Non-Payment of Premiums

• Employers must calculate and pay premiums based on their insurable earnings. Late or non-payment of premiums can lead to financial penalties. These fines can accumulate daily, increasing the overall cost for the employer.

Legal and Administrative Consequences

1. Legal Action

• Persistent non-compliance can result in legal action taken by the WSIB. This can include court proceedings to recover unpaid premiums or fines, as well as additional legal costs.

2. Increased Scrutiny and Inspections

• Businesses that fail to comply with WSIB requirements may be subjected to increased scrutiny and more frequent inspections. This can disrupt business operations and result in additional administrative burdens.

Operational Impacts

1. Loss of Clearance Certificates

• Contractors and subcontractors may require WSIB clearance certificates to show they are in good standing. Failure to comply with WSIB regulations can result in the revocation of these certificates, which can hinder business operations and contractual agreements.

2. Reputational Damage

• Non-compliance with WSIB requirements can damage a company’s reputation. This can affect relationships with clients, partners, and employees, and potentially lead to a loss of business opportunities.

Conclusion

Understanding and complying with WSIB requirements is crucial for HR professionals and businesses to ensure workplace safety and avoid significant penalties. By registering with the WSIB, accurately reporting injuries, paying premiums on time, and maintaining robust health and safety programs, businesses can contribute to a safer working environment and support their employees effectively.

Resources for Further Information

WSIB official website