What is workers' compensation?

Workers' compensation is a system of insurance that provides benefits to employees who are injured or become ill as a result of their work. It's designed to ensure that employees receive medical care and financial support if they are unable to work due to a workplace injury or illness.

Understanding workers’ comp in Canada

Workers' compensation laws in Canada are regulated at the provincial and territorial levels. Each province and territory has its own workers' compensation system, which provides benefits to injured workers and their families. The systems are funded by employers, who are required to pay premiums based on their payroll.

Workers' compensation systems in Canada provide benefits to injured workers to help them recover from a workplace injury or illness. The benefits available to injured workers may include:

1. Medical Benefits: Injured workers are entitled to medical benefits to cover the cost of necessary medical treatment and rehabilitation services. This may include hospitalisation, physiotherapy, chiropractic care, prescription medications, and other medical services required to treat the injury or illness.
2. Wage Replacement Benefits: If a worker is unable to work due to a workplace injury or illness, they may be entitled to wage replacement benefits. These benefits provide compensation for lost wages and are usually a percentage of the worker's pre-injury earnings. Wage replacement benefits may be temporary or long-term, depending on the severity of the injury or illness.
3. Permanent Disability Benefits: Workers who suffer a permanent impairment or disability as a result of a workplace injury or illness may be entitled to permanent disability benefits. These benefits provide compensation for the permanent loss of earning capacity due to the injury or illness.
4. Survivor Benefits: If a worker dies as a result of a workplace injury or illness, their surviving dependents may be entitled to survivor benefits. These benefits provide compensation for the financial loss suffered by the dependents due to the worker's death. Survivor benefits may include compensation for lost wages, funeral expenses, and other related costs.

What you’re responsible for as an employer

1. Registering with the Workers' Compensation Board or Commission: In most provinces and territories in Canada, employers are required to register with the Workers' Compensation Board or Commission. This allows you to pay premiums and access workers' compensation benefits for your employees.
2. Paying premiums based on your payroll: Employers are required to pay premiums to the Workers' Compensation Board or Commission based on their payroll. The premiums are used to fund the workers' compensation system and provide benefits to injured workers.
3. Reporting workplace injuries and illnesses: Employers are required to report workplace injuries and illnesses to the Workers' Compensation Board or Commission. This includes reporting the injury or illness to the board or commission as well as to the worker's supervisor or manager.
4. Providing appropriate training and safety equipment: Employers are responsible for providing appropriate training and safety equipment to their employees to help prevent workplace injuries and illnesses. This may include providing safety training, protective equipment, and ergonomic workstations.
5. Cooperating with the Workers' Compensation Board or Commission: Employers are required to cooperate with the Workers' Compensation Board or Commission in their investigation of workplace injuries and illnesses. This may include providing information and documentation related to the injury or illness and cooperating with the board or commission in any hearings or appeals related to the injury or illness.

Workers' compensation is a vital part of workplace safety in Canada. By understanding workers' compensation laws and regulations and complying with your responsibilities as an employer, you can protect your employees and your business. If you have questions about workers' compensation or need help with compliance, consider consulting with a legal or HR professional.

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