Law
s.77
A Schedule 1 or Schedule 2 employer shall notify the WSIB of a material change in circumstances in connection with the employer's obligations under this Act within 10 days after the material change occurs.
s.149(3)
An employer who wilfully fails to inform the WSIB of a material change in circumstances in connection with an obligation of the employer under this Act within 10 days after the change occurs is guilty of an offence.
s.158
A person who is convicted of an offence is liable to the following penalty:
- if the person is an individual, he or she is liable to a fine not exceeding $25,000 or to imprisonment not exceeding 6 months or to both
-
if the person is not an individual, the person is liable to a fine not exceeding $100,000.
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Policy
The WSIB takes all necessary action against employers who intentionally fail to inform the WSIB of a material change in circumstances (see 22-01-05, Offences and Penalties - General, and 22-01-08, Offences and Penalties - Employer). Back to top
Guidelines
Definitions
A material change in circumstances includes any change that may affect an employer's obligations under the Act. These obligations generally include, but are not limited to,
- reporting and payment of premiums
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payment of surcharges, including adjustments, under experience rating
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accurate reporting of business activity
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reimbursement of benefit costs.
Examples of changes in circumstances that must be reported include, but are not limited to,
- change in business name and/or address
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change in ownership of company
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disposition of all or part of a business
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change in business activity
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change in legal affiliations with other companies (e.g., amalgamations or mergers)
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change in average earnings for the purposes of optional insurance. Changes in excess (one per calendar year) are not required to be reported.
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closure of business (or divisions or branches), dissolution, bankruptcy, or receivership.
The decision-maker determines whether the reported change has any material significance.
Failing to inform the WSIB of a material change in circumstances is presumed to be intentional or deliberate, and thus willful, unless the employer can demonstrate having no knowledge of the change. The decision-maker determines whether the employer reasonably ought to have been aware of the change.
Responsibility to report
The employer is responsible for contacting the WSIB no later than 10 calendar days from the date of the change. If notices of change are mailed or sent by courier, these must be received at the WSIB's offices within the 10-day period. The WSIB will accept notification of a change before it occurs.
Notifying the decision-maker
In communicating notices of material change, employers deal with different decision-makers in various areas of administration. If possible, the notice of a change in circumstances is provided to the decision-maker responsible for the area impacted by the reported change.
The employer must communicate the required information to the WSIB by:
- direct telephone contact
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delivering the notice in person
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informing a WSIB auditor or decision-maker at the time of a site visit
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using Canada Post mail or private courier, or
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FAX to the decision-maker's attention at a fax number assigned to the decision-maker's operating area, or
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electronic means.
Action following preliminary investigation
Following a preliminary review of the circumstances, the decision-maker determines whether the change has material significance. If warranted, the case may be referred to the WSIB's Regulatory Services.
Application date
This policy applies to all decisions made on or after November 3, 2008.
Document history
This document replaces 22-01-01 dated February 11, 2008.
This document was previously published as:
22-01-01 dated October 12, 2004.
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References
Legislative authority
Workplace Safety and Insurance Act, 1997, as amended
Sections 77, 78, 146, 149(3), 158
Minute
Administrative
#13, October 15, 2008, Page 466 Back to top |