The purpose of this policy is to communicate how WorkSafeNB determines whether to transfer or share (affiliate) an employer’s cost experience when a change in their business activities results in a new employer account.
This policy applies to all employers who have a change in business activities resulting in a new employer account.
WorkSafeNB allocates claim costs to the appropriate employer account using Policy 21-300 Allocation of Claim Costs. Once allocated, the costs are used to determine WorkSafeNB’s basic rates and the employer’s experience rate.
When an employer’s business activities change, resulting in a new employer account, WorkSafeNB determines if the cost experience of the original employer should be:
WorkSafeNB makes this determination when employers:
2.0 Nominal Change in Ownership
When there is a nominal change in ownership, WorkSafeNB determines that the new owner(s) have continued the business activities and must assume the previous cost experience.
WorkSafeNB considers the following situations to be nominal changes in ownership:
For the purpose of this policy, the current owner’s family members include:
3.0 Material Change in Ownership
WorkSafeNB opens a new employer account and does not transfer previous cost experience when there is:
4.0 Sale of Shares
In situations involving the sale or transfer of controlling shares of an incorporated company, the new shareholders (owners) have purchased all assets and liabilities of the previous business and will assume its cost experience.
5.0 Sale of Assets
WorkSafeNB opens a new employer account and does not transfer cost experience when:
6.0 Partial Transfer of Business Activity
When the partial transfer of business activity to an existing employer (affiliated) occurs, the cost experience of both accounts is used to determine the rate applicable to both accounts. The two employer accounts also share the same net assessment rate.
Employers are considered to be affiliated, even though they are separately registered when:
Employers may also be considered affiliated when:
For more information on when WorkSafeNB determines employers to be affiliated, see Policy 23-300 Employer Classification.
7.0 Change of Name
WorkSafeNB maintains the employer’s cost experience when the business name changes, but the business activities remain the same.
8.0 Receivership or Bankruptcy
When a receiver or trustee is appointed to manage the business activities of an employer, WorkSafeNB opens a new account and does not transfer the previous claim cost experience.
Affiliated accounts – employers are classified and rated on the basis of the industry in which they are operating. Rates established for any one industry reflect the combined risks of all occupations found in that particular industry. If an employer’s business activities are supportive or ancillary to another employer’s business, such as sales, administration, delivery, etc., or they are involved in the same industry classification and there is a degree of common ownership, then both firms will receive the same classification, even though they are separately registered.
Appeals Tribunal – means the Workers’ Compensation Appeals Tribunal established under the WHSCC & WCAT Act.
Experience rate – is the adjustment applied to the basic rate to reflect employers’ cost experience.
Material change in ownership – the change in ownership of a proprietorship or a partnership by more than fifty percent (50%).
Nominal change in ownership – the change in ownership of a proprietorship or a partnership by fifty percent (50%) or less.
WorkSafeNB – means the Workplace Health, Safety and Compensation Commission or "the Commission" as defined by the WHSCC & WCAT Act.