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Operational policy manual

Schedules 1 & 2

Coverage
Application Date
This policy applies to all decisions made on or after January 1, 1995.
Published
03-Mar-2008
Subject
Employer Coverage
Title
Schedules 1 & 2
Document No.
12-01-04

Law

Workplace Safety and Insurance Act

s.88(2)

A Schedule 1 employer is not individually liable to pay benefits directly to workers or their survivors under the insurance plan.

s.90(1)

Every Schedule 2 employer is individually liable to pay benefits under the insurance plan respecting workers employed by the employer on the date of the accident.

Guidelines - Schedule 1

Workplace insurance coverage is compulsory for any business or industry named in Schedule 1, Regulation 175/98. Employers included in Schedule 1 must contribute to the insurance fund.

Insurance fund

The insurance fund is made up of annual premiums paid by Schedule 1 employers. The amount of premium is based on the WSIB's classification of the employer's business activity and the employer's total insurable payroll.

Collective liability

Through contribution to the insurance fund, a Schedule 1 employer is protected by a system of collective liability. Since the WSIB pays benefits to injured workers out of money pooled in the insurance fund, Schedule 1 employers are relieved of individual responsibility for actual accident costs.

Industry classification

Regulation 175/98 divides Schedule 1 employers into 9 different industry classes. For a complete listing of industries covered in Schedule 1, refer to Regulation 175/98.

Mixed operation

The payroll of workers who are engaged in an operation which is carried on partly as an industry under Schedule 1 and partly as an industry not under Schedule 1 is classified as if the entire operation were in Schedule 1.

Adding industries to Schedule 1

The WSIB may recommend to the Lieutenant Governor in Council that any industry not in Schedule 1 be added to Schedule 1.

Guidelines - Schedule 2

Individual liability

Schedule 2 employers are compulsorily covered through a system of individual liability. These employers must individually pay the total costs of benefits for their injured employees.

Administration

To cover the cost of these benefits, the WSIB may request a deposit from the Schedule 2 employer.

The WSIB charges each Schedule 2 employer for the cost of administering their claims. Each year an administration rate is calculated and applied as a percentage added to the employers' benefit costs.

Industries in Schedule 2

Schedule 2 of Regulation 175/98 includes the following industries

  • railways
  • telephone companies within the legislative authority of the Parliament of Canada
  • telegraph companies
  • navigation companies
  • international bridges
  • the provincial government, including boards, commissions, and Crown agencies
  • any airline with a regularly scheduled international passenger service
  • municipalities, including municipal boards and commissions, except hospital boards
  • public library boards
  • police villages
  • school boards.

Federal government

Federal government workers are covered under the Government Employees Compensation Act (a federal statute administered by the provincial workers' compensation boards). These workers are entitled to the same benefits as any worker protected by the Workplace Safety and Insurance Act of Ontario. Their claims are administered as if the federal government were a Schedule 2 employer.

The operating departments of the federal government channel all information concerning accidents through the Human Resources and Social Development Canada (HRSDC) - Labour Program to

  • determine if the worker is employed by the federal government and if advances are paid
  • countersign the "Employer's Report of Injury/Disease, Form 7" (see 15-01-02) authorizing the WSIB to proceed with adjudication of the claim, and
  • note whether an election form is required in third party claims (see 15-01-05).

Transfer to Schedule 1

Any Schedule 2 employer may request a transfer to Schedule 1 and receive the protection of collective liability. Guidelines for Schedule 2 employers requesting transfers to Schedule 1 are the same as those for non-covered employers applying for Schedule 1 coverage (see 12-01-02, Employer by Application).

Application date

This policy applies to all decisions made on or after January 1, 1995.

Document history

This document replaces 12-01-04 dated October 12, 2004.

This document was previously published as:

08-01-02 dated December 21, 1994.

References

Legislative authority

Workplace Safety and Insurance Act, 1997, as amended

Sections 67, 68, 74, 88(2), 90(1), 91, 92, 183(2)

O. Reg. 175/98, Schedule 1, Schedule 2, s.12

Workers' Compensation Act, R.S.O., 1990, as amended

Sections 1(3), 5, 6 103, 107, 109(2)

Reg. 1102, R.R.O. 1990

Schedule 1 and Schedule 2

Minute

Administrative

#3, December 11, 2007, Page 451