What to do when an injured worker is due to be laid off
I often get asked what an employer should do if they are laying off a worker and they are currently are on a Workers’ Compensation Board (WCB) claim. The reality is that the heavy construction industry, for the most part, is a seasonal industry. Most companies lay off their workers at the end of the season and then re-hire people in the spring again. What people do in their layoff time varies from collecting employment insurance to working for another industry or maybe they vacation somewhere warmer. It varies from worker to worker.
If a worker on a WCB claim when the normal season layoff comes it can be a real pain for employers. The real issue is the worker is not medically fit to return to work, the WCB may pay them if the injury and layoff would preclude them from working somewhere else during the layoff period.
An example of this is Sam’s case. Sam works in the heavy construction industry driving heavy equipment until layoff but was injured at work. In the wintertime, Sam works doing snow removal for another company but due to his injury, this year during layoff cannot do his snow removal job. Sam’s wages would continue to be paid by the WCB unless the employer can find a job for Sam to do until he is fully recovered. Where possible, it is in the employer’s best interest to keep workers employed so the employer isn’t incurring WCB costs for the claim during layoff. Keeping people employed during a layoff season is not always possible for some employers, but if possible, it is a way to reduce WCB costs.
If you are able or can find something for an injured worker to do during layoff, it can be financially beneficial to keep that person working as long as possible to reduce your WCB costs.
In the past, if a worker was on WCB they would often make more than they would working their normal season in a seasonal industry. The Saskatchewan WCB brought in Section 70, recognizing that some workers were making more on WCB than they normally would make in a year. Section 70 states that a review will take place within 24 weeks of the claim’s acceptance to review the wage loss to see what that person would normally make in 52 weeks. If the person only ever works 26 weeks a year, then their WCB wage loss should reflect that and their wage loss may stay the same or get reduced. All claims are reviewed at the WCB for Section 70.4.
It is good to remember any cost that is put through the Saskatchewan WCB will affect an employer’s WCB premiums. In simple terms, less WCB costs equals less WCB premiums. If you are able or can find something for an injured worker to do during layoff, it can be financially beneficial to keep that person working as long as possible to reduce your WCB costs. I recognize that it may require some creative thinking to come up with some ideas for jobs during a layoff period, but it is worth it financially! Ideally, you hope you never have an injured worker still on the books during the seasonal layoff time, but sometimes it cannot be helped and you may have to bite the bullet and find something for them to do and hope it is short term.
WCB policies that can be referred to for more information are POL02/2018: Benefits Return to Work Interrupted; and Section 70.4: establishing a wage-base for seasonal workers.