Policy
A worker who is unable to continue working due to a short-term or long-term layoff, and whose employability is clearly affected by his/her work-related impairment/disability and associated clinical restrictions, may qualify for- additional loss of earnings (LOE) benefits, temporary total disability benefits (TT), future economic loss (FEL) supplement, or s.147(2) supplement, and possibly
- labour market re-entry (LMR) services.
NOTE
Read this policy in conjunction with 15-06-01, Entitlement Following Work Disruptions: General for additional information that is common to the work disruption policies, such as definitions, re-employment and co-operation obligations, LMR specifications, etc.
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Guidelines
Short-term layoffs
A short-term layoff refers to
- a work disruption with a specific recall date, or
- a work disruption without a specific recall date that lasts, or is expected to last, three months or less.
A work disruption should be treated as a short-term layoff unless it is known to be permanent from the start, e.g., a plant closure.
Recall date
If the recall date is beyond the three-month mark, the decision-maker has to determine the following
- Was the recall date provided in writing?
- Can it be shown with some degree of certainty that the recall will occur on the date specified (consider the employer’s past practices, the relationship between the employer and the workforce, and any unusual or unique circumstances)?
If the above criteria suggest that the recall is likely to occur on the date specified, the work disruption continues to be treated as a short-term layoff past the three-month mark.
LMR services
LMR services and the associated benefits are generally not provided if the worker is involved in a short-term layoff.
Short-term layoffs - entire workforce
For workers who are involved in a short-term layoff that involves the entire workforce, decision-makers use the following guidelines.
General rule for entitlement
Generally, workers involved in a short-term layoff that affects the entire workforce should have their benefit status maintained, i.e.,
- if the worker is not in receipt of LOE, FEL, or permanent disability (PD) benefits at the time of the work disruption, additional benefits/services should probably not be allowed
- if the worker is in receipt of partial LOE/FEL/PD benefits at the time of the work disruption, the partial benefits should probably continue, or
- if the worker is in receipt of full LOE/FEL/TT minus PD/TT benefits at the time of the work disruption, the full benefits should probably continue.
Likely exceptions to the general rule
The following factors suggest that the worker’s employability is clearly affected by the work-related impairment/disability and associated clinical restrictions and that additional WSIB benefits/services may be in order
- The worker is in the early phase of recovery (i.e., there is a recent date of accident/recurrence/deterioration).
- The worker is still receiving WSIB-approved active (non-maintenance) health care treatment (e.g., physiotherapy) on a frequent basis.
- The worker is on a graduated return to work program.
- The worker requires a high degree of accommodation. (Tasks and work processes have been specifically accommodated for the worker’s impairment/disability and are not likely to exist with or be provided by another employer.)
- The worker has an impairment/disability that is significant enough that it clearly presents an obstacle to the worker finding alternate employment. (Workers who have more than one work-related impairment/disability may be significantly impaired/disabled due to the combination of their impairments/disabilities.)
NOTE
The employability of workers to whom only factor(s) 4 and/or 5 apply would generally not be affected when the layoff is recurring, or periodic, and of very short duration, i.e., a two-week plant closure every year during the summer and/or the December holiday season. Consequently, these workers would generally not be entitled to additional benefits.
Date of entitlement
If the decision-maker decides that additional benefits/services are in order, in most cases, these would be paid/provided from the date the work disruption started.
Health care monitoring
In all cases, the worker’s benefits may be adjusted when the health care information indicates that the worker has recovered to the extent that the worker
- is fit for the pre-injury job, or
- is fit for suitable work, and
- no longer requires active treatment and/or a graduated return to work program, and
- the worker’s clinical restrictions do not present an obstacle to finding alternate employment.
Adjusting benefits
Before the decision-maker can adjust a worker’s benefits, the decision-maker has to identify a suitable and available employment or business (SEB). For example, if the worker becomes fit for
- the pre-accident job, then the pre-accident job is the SEB, or
- suitable work with the accident employer that is also available in the general labour market, then the suitable work is the SEB.
Short-term layoffs - partial workforce
For workers who are involved in a short-term layoff that involves only part of the workforce, the decision-maker has to consider the following
1 The employer's re-employment obligations |
2 The workplace parties' co-operation obligations in ESRTW |
3 The cause of the loss of earnings- is the worker's loss of earnings during the work disruption primarily due to - the employment situation, or
- the work-related impairment/disability.
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Each of the preceding steps must be followed sequentially as detailed below.
1. The employer’s re-employment obligations
First, decision-makers consider whether the employer has breached its re-employment obligations (see 19-04-02, Re-employment Obligation to 19-04-10, Re-employment Provisions and Collective Agreements).
2. The workplace parties’ co-operation obligations
Workplace parties have obligations to co-operate in early and safe return to work (ESRTW) by maintaining communication, and maintaining ongoing efforts to identify and secure suitable and available work which restores the worker’s pre-injury earnings, if possible (see 19-02-02, The Goal of ESRTW and the Roles of the Parties).
Employer non-co-operation
Full benefits (i.e., LOE benefits, FEL /s.147(2) supplement) may be payable if the employer is not co-operating and the worker is unable to return to the pre-accident job because of his/her work-related impairment/disability. Indicators that the employer is not attempting to provide suitable and available work and, therefore, is not co-operating include, but are not limited to
- The employer is not aware of the worker’s functional abilities information.
- The employer has not discussed with the worker how available jobs could be accommodated.
- The employer has not prepared or provided job descriptions or physical demands analyses, etc.
Worker non-co-operation
If the worker is not co-operating, the worker is not entitled to additional benefits/services. Indicators that the worker is not co-operating include, but are not limited to
- The worker is not applying for available jobs.
- The worker is applying only for jobs that he/she is not qualified for as per the terms of the collective agreement.
- The worker is not responding to written or telephone contacts from the employer.
3. Determining the cause of the loss of earnings
If there is no evidence that the employer has breached the re-employment and/or co-operation obligations, and the worker has met his/her co-operation obligations, then decision-makers use the following table. This table helps decision-makers determine if the worker’s loss of earnings during the work disruption is due primarily to the employment situation or the work-related impairment/disability.
Decision-makers need to consider and weigh all the factors; in some cases, factors on both sides may be present. If the factors suggest that the worker’s loss of earnings is caused primarily by the worker’s work-related impairment/disability, the worker may be entitled to additional benefits/services.
| Factors suggesting employment situation | Factors suggesting work-related impairment/disability |
- The worker’s lack of qualifications (i.e., worker with more qualifications would not be laid off).
| - The worker is still receiving WSIB-approved active (non-maintenance) health care treatment (e.g., physiotherapy) on a frequent basis.
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- The worker is working for a new employer (i.e., has demonstrated that the worker’s injury does not pose a barrier to acquiring new employment).
| - The worker is in the early phase of recovery (i.e., recent date of accident/recurrence/ deterioration).
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- The worker needs minimal or no accommodation.
| - The worker requires a high degree of accommodation; tasks and work processes have been specifically accommodated for the worker.
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- The worker’s lack of seniority (i.e., worker with more seniority would not be laid off).
- The worker chooses not to exercise bumping rights or chooses to be laid off.
| - The worker is unable to bump a co-worker with less seniority due to his/her work-related impairment/disability.
- Decision-makers need to exercise judgement in these cases to make sure there isn’t more than one injured worker able to bump into the same job. If there is more than one, only the worker with the highest seniority would get the benefit of this factor weighed in his/her favour.
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|   | - The significance of the worker’s permanent impairment(s)/disability.
- Workers with more than one work-related impairment/disability may be significantly impaired/disabled due to the combination of their impairments/disabilities.
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Date of entitlement
If the decision-maker decides additional benefits/services are in order, these would generally be provided from the date the work disruption started.
Health care monitoring
"Health care monitoring", outlined above, also applies to short-term layoffs - partial workforce.
Long-term layoffs - entire or partial workforce
Usually, when a short-term layoff lasts more than three-months, it becomes a "long-term layoff" from the three-month mark onward.
A work disruption is considered long-term when it has lasted three months or more, and
- it has no recall date, or
- a recall did not occur on the date provided, or
- it has a recall date, but the date is far in the future and the likelihood of an actual recall occurring on that date is low.
When a short-term layoff becomes a long-term layoff, it is generally presumed that the worker will have to seek employment elsewhere, and due to his/her work-related impairment/disability and associated clinical restrictions, may require assistance from the WSIB to re-enter the labour market.
General Rule for Entitlement
Workers who did qualify for additional benefits/services during the short-term layoff
For these workers, once the short-term layoff becomes a long-term layoff
- Full benefits should probably continue to be paid past the three-month mark, and health care monitoring of the claim file should continue.
- The worker’s clinical condition is monitored to determine when the worker is fit to do the pre-accident job or suitable work with the accident employer, and
- no longer requires active treatment and/or a graduated return to work program,
- the worker’s clinical restrictions do not present an obstacle to finding alternate employment, and
- the suitable work is available in the general labour market.
- When this is the case, the suitable and available work would usually become the worker’s SEB, full benefits would be adjusted and, if appropriate, a partial benefit would be paid based on the SEB.
- If the decision-maker is unable to determine an appropriate SEB for the worker, and the worker meets the eligibility criteria for an LMR assessment (see “LMR assessment and eligibility criteria” below), then the WSIB offers an LMR assessment.
Workers who did not qualify for additional benefits/services during the short-term layoff
For workers who are still unable to perform their pre-accident job after the three-month waiting period is up
- The decision-maker determines whether the suitable work that the worker was doing at the time of the work disruption is available in the general labour market.
- If the suitable work that the worker was doing at the time of the work disruption is available in the general labour market, then that suitable and available work would usually become the worker’s SEB and, if appropriate, a partial benefit would be paid, based on the SEB.
- If the decision-maker is unable to determine an appropriate SEB for the worker, and the worker meets the eligibility criteria for an LMR assessment, then the WSIB offers an LMR assessment.
Date of entitlement
Based on the indicators listed below, decision-makers can consider restoring benefits from a date other than the three-month mark.
The date selected depends on indicators of co-operation/availability for suitable work that are specific to each case. Such indicators include, but are not limited to
- Was the worker in contact with the WSIB from the start of the work disruption, and periodically thereafter?
- Has the worker demonstrated availability for suitable work and/or made regular efforts to obtain suitable work?
- Has a failure on the worker’s part to notify the WSIB regarding the layoff led to delayed decision-making?
LMR services
LMR assessment and eligibility criteria
Once the decision-maker rules that the criteria for a long-term layoff have been met and that he/she is unable to determine an appropriate SEB for the worker, the WSIB can offer an LMR assessment to workers who
- have a likely permanent impairment/disability
- are unable to perform their pre-accident job due to the work-related impairment/disability, and
- have not previously received LMR services.
Application date
This policy applies to all decisions made on or after July 1, 2007, for all accidents.
Document history
This document replaces 15-06-02 dated October 12, 2004.
This document was previously published as:
18-01-08 dated April 11, 2003.
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References
Legislative authority
Workplace Safety and Insurance Act, 1997, as amended
Sections 40, 41, 42, 43, 107, 108, 110
Workers' Compensation Act, R.S.O. 1990, as amended
Sections 37, 43, 54, 147(2)
Minute
Administrative
#18, June 26, 2007, Page 441
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