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Claims Application Date:
This policy applies to all decisions made on or after July 1, 2007, for all accidents.
Published:
01-Aug-2007
Subject
Special Circumstances
Title
Entitlement Following Work Disruptions: Permanent Layoffs
Document No.
15-06-03
| Policy | Guidelines | References |

Policy

When a worker is laid off with no chance of recall (i.e., there’s a plant closure, the employer has ceased business), the work disruption is considered permanent.


A worker who is unable to continue working due to a permanent 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, LMR specifications, re-employment and co-operation obligations, etc.

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Guidelines

General rule for entitlement

Workers requiring close health care monitoring

The presence of any of the following factors indicates that the worker requires ongoing close health care monitoring

  • 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 above factors also 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 and may be paid/provided from the date the worker is permanently laid off.
For workers who require close health care monitoring
  • full benefits should probably continue to be paid and close health care monitoring of the claim file should also 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, and
    • 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 work would usually become the worker’s suitable and available employment or business (SEB) and 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 whose clinical condition is stable

For all other workers whose clinical condition is more stable but who are still unable to perform their pre-accident job because of their work-related impairment/disability and associated clinical restrictions

  • the decision-maker determines whether the suitable work that the worker was doing at the time of the permanent layoff is available in the general labour market
  • if the suitable work that the worker was doing at the time of the permanent layoff 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.

LMR services

LMR assessment and eligibility criteria
Once the decision-maker rules that the criteria for a permanent work disruption 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, and
  • are unable to perform their pre-accident job due to the work-related impairment/disability, and
  • have not previously received LMR services.

Date of entitlement

Based on the indicators listed below, decision-makers can consider restoring benefits from a date other than when the worker was permanently laid off. 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 when notified of the permanent layoff, 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 led to delayed decision-making?

Application date

This policy applies to all decisions made on or after July 1, 2007, for all accidents.

Document history

This document replaces 15-06-03 dated October 12, 2004.

This document was previously published as:
18-01-09 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
#19, June 26, 2007, Page 441

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