Policy
WorkSafeNB adjudicates all claims using Policy 21-100 Conditions for Entitlement – General Principles. Once a claim is accepted, WorkSafeNB provides a range of benefits to injured workers, as required. These benefits may include:
WorkSafeNB has a legal responsibility to determine an injured worker’s loss of earnings because of a workplace injury. When WorkSafeNB determines that an injured worker is experiencing a loss of earnings due to a workplace injury WorkSafeNB pays compensation for loss of earnings based on the following legislated formula:
Loss of earnings = average net earnings – net estimated capable earnings
The compensation payable for a workplace injury is 85% of loss of earnings. For more information, see Policy 21-210 Determining Average Earnings.
Subsections 38.11(9) and 38.2(2.5) of the WC Act provide limits to the compensation that injured workers can receive. When injured workers receive remuneration from sources other than WorkSafeNB, compensation payments for loss of earnings may be reduced.
WorkSafeNB determines remuneration is a supplement to income, and therefore reduces compensation payments for loss of earnings, when all four of the following tests are met:
Interpretation
Specific Reductions in Compensation
1. WorkSafeNB shall deduct from compensation payments for loss of earnings:
When Not to Reduce Compensation
2. Remuneration received during the worker’s compensation period but earned prior to the compensation period shall not be deducted from compensation payments for loss of earnings. Examples include but are not limited to:
Retirement Incomes
3. Retirement income refers to payments, made to the worker, from a pension plan or other retirement fund, intended to provide financial assistance when a worker retires. Retirement income is not considered a supplement to compensation and will not be used to reduce compensation for loss of earnings.
4. Retirement income may include, but is not limited to:
5. If an injured worker is receiving a retirement income it may indicate that the employment relationship has been terminated, such that compensation payments for loss of earnings may end under subsection 38.11(14). Please see Policy 21-214 Continued Entitlement to Compensation Payments for Loss of Earnings.
Employers’ Payments into a Retirement Fund
6. An employer’s payment into an employee retirement fund is not retirement income. Such payments may be a supplement to compensation if all four tests under this policy are met.
Previous Policies
Workers’ Compensation Act (WC Act)
For injuries after 1982 but before 1998:
Case Law
J.D. Irving, Limited (Sussex Sawmill) v. Wayne Douthwright and Workplace Health, Safety and Compensation Commission
Employer - (a) every person having in his service under contract of hire or apprenticeship, written or oral, express or implied, any worker engaged in any work in or about an industry, (b) a municipal corporation, commission, committee, body or other local authority established or exercising any powers or authority with respect to the affairs or purposes, including school purposes, of a municipality, (c) a person who authorizes or permits a learner to be in or about an industry for the purposes mentioned in the definition “learner”. (adapted from the WC Act)
Estimated capable earnings - earnings that the injured worker is estimated to be capable of earning, at a suitable occupation, after the injury or recurrence of injury. (adapted from the WC Act)
Loss of earnings - average net earnings minus the net earnings the worker is estimated to be capable of earning at a suitable occupation after sustaining the injury. (adapted from the WC Act)
Maximum annual earnings - an amount equal to 1.5 times the NBIAE, which is set by the Commission as of the first day of January of each year. (adapted from the WC Act)
Remuneration - all income, earnings, or money from an employment-related source.