Law of Compensation Explained in Details

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The Employment and Social Development Canada (ESDC) manages the labor program according to the Government Employees Compensation Act, which was approved in 1918, for the first time. The act contains detailed explanation on Law of Compensation.

According to the law, boards for provincial workers will look after injured workers’ cases. They are responsible for taking care of the treatment and adjudicate workers. They will also pay compensation claims on behalf of the Canadian government.

This arrangement still exists. The Labour Program’s Federal Workers’ Compensation Service at ESDC receives and processes claims. They do it through rightful provincial authority.

Who is Eligible for the Law of Compensation?

All federal government employees are under The Government act for Employees Compensation. All Canadian government employees include employees working in Canada, Canadian employees who are currently posted outside Canada, and locally engaged employees outside of Canada.

The following describes when an employee can claim compensation:

  • An employee who got injured by accident arising out of and in the course of his employment
  • An employee becomes disabled by industrial disease for the nature of the job
  • The dependants of an employee could claim compensation if the employee died in an accident or industrial disease.
  • If an employee travels abroad for work and gets injured, he will not be eligible in case of personal traveling
  • If an employee dies while he was away from home or usual workplace, his dependants can claim compensation, only if he went to the location as part of his job duty

What Includes in the Compensation Act?

Any employee under the Canadian government can get compensation if they get injured in their duties. The settlement also includes:

Loss of Earnings Compensation

When an employee is injured and cannot work, he loses his earnings. This act allows compensation for employees for loss of earnings.

Medical or Hospital-Related Services

Due to occupational injury or illness, an employee has to have some medical support. According to the compensation law, the employee will get compensation for any medical or hospital-related services that the employee needed in case of workplace injury.

Rehabilitation Services

Federal government employees are under the Provenance act and can claim rehabilitation service. It includes medical service. The rehabilitation service can be different depending on different provinces. An injured person who has a disability due to occupational injury can get rehabilitation services.

A Pension in Case of Permanent Disability

If an employee becomes permanently disabled and cannot perform his previous duties, he will get a pension. He will be helped in every way to get a job that he is capable of doing.

Right to Choose a Doctor

A worker has the right to choose a doctor for the necessary treatment. He might not be able to change the doctor easily after choosing once. Still, he can get it by applying to authority.

Pension for Dependants of Employees Who are Fatally Injured

If a person becomes fatally injured and cannot work anymore, his dependents will get a pension on behalf of him. The law of compensation includes this particular topic covered in that act.

The Government will Bear All Costs

To get compensation, medical service, other services regarding getting compensation, all expenses will be under the government.

Workers’ Compensation is Not Subject to Tax

The compensation an employee gets due to occupational injury will not be subject to tax. The government will bear the employee; the employee does not have to pay any money for getting compensation.

Duties of the Employer

The employer must ensure that the employees know about their compensation rights. Designated officers should report about injuries to the Federal Workers Compensation Service.  They have to report about the injury that costs time loss or involves medical attention.

They have to claim within 03 days of the occurrence. Personnel officers are in charge of reporting occasional injuries or illnesses of their employees in detail. They have to maintain first aid records, especially when a doctor is involved and needs to report it to the Federal Workers’ Compensation Service.

Two booklets from Labor Program at ESDC are available for employees and the person who will report any injury. Every employee will get a book titled “If You Have An Accident,” and “Employees Guide” should be provided to the person in charge of reporting.

How to Apply for Compensation?

When an employee faces occupational injury or illness, he has to report it by the “Employer’s Report of Accident” form. The form needs to be submitted to  Labour Program’s for Federal Workers’ Compensation Service managed by ESDC within three days, with necessary supporting documents. Department or agencies have to make sure that the right employee classification code is inserted in the form to identify injured employee’s occupation accurately.

Refusal of Compensation Claim

There are a few reasons for which the Labour program or Provincial Workers’ Compensation Service can decline an employee’s claim for compensation.

  • When an employee cannot show a proper document to prove his occupational injury or illness
  • The injury or illness did not occur or arise in or out of the course of employment
  • When the disability does not match with the reported accident
  • When there is no medical evidence of the injury or disability

Third-Party Claims

Usually, an occupational accident occurs in a workplace; the employee takes action against the employer. In cases where a third party causes the accident is also under the workers’ compensation act. An employee can take two. They are:

  • Claim compensation according to the act. This is what happens in most cases.
  • Take action against the third party where there could be a settlement between the employee and the third party

To sum up

You have every right to claim compensation in case of a work injury. The law of compensation works in favor of the employee who gets injured on duty. Human Resources and Skills Development Canada (HRSDC)-Labour Program receives and reviews all workplace injury compensation appeals. They stay involved until the case is solved.

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