Versions

Workers' Compensation and

Occupational Health and Safety Amendment Act, 1995

EXPLANATORY NOTE

Amendments are made to the Workers' Compensation Act in Part I of the Bill and to the Occupational Health and Safety Act in Part II. Certain provisions are made retroactive, as described below.

Part I Workers' Compensation Act

The purpose section of the Workers' Compensation Act is replaced.

Changes are made in the composition of the board of directors of the Workers' Compensation Board. Some responsibilities of the board of directors are set out. These changes come into force on a day to be named by proclamation of the Lieutenant Governor. They include:

1. In addition to the chair and the president, the board of directors will include a minimum of three and a maximum of seven members who are representative of workers, employers, and such others as the Lieutenant Governor in Council considers appropriate. All members will be appointed by the Lieutenant Governor in Council.

2. The board of directors will be required by the Act to act in a financially responsible and accountable manner.

3. The memorandum of understanding between the Workers' Compensation Board and the Minister of Labour will include only such terms as may be directed by the Minister. It must address certain matters that are set out in the Act.

4. The cost, efficiency and effectiveness of at least one program delivered by the Board must be reviewed each year.

Until these changes are proclaimed in force, the board of directors is replaced by a president who is appointed by the Lieutenant Governor in Council. This change is made retroactive to November 1, 1995. Transitional provisions that are set out include the following:

1. Proceedings are prohibited or discontinued that challenge the appointment or decisions of the president between November 1, 1995 and the day on which the Bill receives Royal Assent.

2. Proceedings are also prohibited or discontinued that challenge the termination of the appointments of the board of directors on November 1, 1995.

Employers are required to register with the Board within 10 days after becoming an employer.

Individuals are required to inform the Board within 10 days after a material change in circumstances in connection with their entitlement to benefits under the Act. Similarly, the Board is to be given 10 days' notice of a material change in circumstances in connection with employers' obligations under the Act.

The Board is authorized to recover overpayments made to workers, their dependants, and employers. Additional mechanisms are established for collecting money payable to the Board.

A new Part V (Offences and Penalties) of the Act is created. New offences are established for providing false or misleading statements to the Board and for failing to advise the Board of material changes in circumstance. Directors and officers of a corporation are guilty of an offence if they knowingly authorize, permit or acquiesce in the commission of an offence by the corporation.

Existing offence provisions are moved into the new Part V. Current penalty provisions are moved to Part V and the level of maximum penalties is increased.

Part II Occupational Health and Safety Act

The board of directors of the Workplace Health and Safety Agency is replaced by an executive director, appointed by the Lieutenant Governor in Council. This change is made retroactive to August 23, 1995. The executive director performs the functions of the Agency and manages its operations, in accordance with the directions of the Lieutenant Governor in Council or the Minister of Labour.

Transitional provisions are set out. Proceedings are prohibited or discontinued that challenge the appointment or decisions of the executive director between August 23, 1995 and the day on which the Bill receives Royal Assent. Proceedings are also prohibited or discontinued that challenge the termination of the appointments of the board of directors on August 23, 1995.

Bill1995

An Act to amend the Workers' Compensation Act

and the Occupational Health and Safety Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

PART I

WORKERS' COMPENSATION ACT

1. Section 0.1 of the Workers' Compensation Act, as enacted by the Statutes of Ontario, 1994, chapter 24, section 1, is repealed and the following substituted:

PART 0.I

PURPOSE AND INTERPRETATION

Purpose

0.1 The purpose of this Act is to accomplish the following in a financially responsible and accountable manner:

1. To provide fair compensation to workers who sustain personal injury arising out of and in the course of their employment or who suffer from occupational disease and to their survivors and dependants.

2. To provide health care benefits to those workers.

3. To provide for rehabilitation services and programs to facilitate the workers' return to work.

4. To provide for rehabilitation programs for their survivors.

5. To prevent or reduce the occurrence of injuries and occupational diseases at work.

6. To promote health and safety in workplaces.

2. Subsection 20 (2) of the Act is repealed.

3. The Act is amended by adding the following section:

Overpayments

21.1 (1) An overpayment made by the Board to a person who receives compensation under the Act is a debt due and owing to the Board at the time the overpayment is made.

Amount

(2) The amount of the overpayment is as determined by the Board.

4. The Act is amended by adding the following section:

Material change in circumstances

22.1 A person receiving benefits or who may be entitled to receive benefits under the Act shall notify the Board of a material change in circumstances in connection with his or her entitlement to benefits within 10 days after the material change occurs.

5. Subsection 50 (9) of the Act is repealed.

6. (1) Subsections 56 (1) and (2) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 24, section 12, shall be deemed to have been repealed on November 1, 1995 and the following substituted:

Governance

(1) A president shall be appointed by the Lieutenant Governor in Council to govern the corporation and to exercise the powers and perform the duties of the Board.

Effect of appointment

(2) The president may exercise the powers and shall perform the duties of the board of directors, the chair and the president.

Remuneration, etc.

(2.1) The remuneration, benefits and expenses of the president shall be determined by the Lieutenant Governor in Council and shall be part of the administrative expenses of the Board.

Meetings and quorum

(2.2) Subsections 65 (1) and (2) do not apply while the president is exercising the powers and performing the duties of the board of directors and the chair.

(2) On a day to be named by proclamation of the Lieutenant Governor, subsection 56 (1) and (2) of the Act, as re-enacted by subsection (1), and subsections 56 (2.1) and (2.2), as enacted by subsection (1), are repealed and the following substituted:

Board of directors

(1) A board of directors shall be appointed by the Lieutenant Governor in Council to govern the corporation and to exercise the powers and perform the duties of the Board.

Composition

(1.1) The board of directors shall be composed of,

(a) the chair;

(b) the president; and

(c) a minimum of three and a maximum of seven members who are representative of workers, employers and such others as the Lieutenant Governor in Council considers appropriate.

Consultation re president

(2) The Lieutenant Governor in Council shall consult with the chair and the members described in clause (1.1) (c) before appointing the president.

Transition

(2.1) Subsection (2) does not apply with respect to the first president appointed upon the coming into force of subsection (1.1).

(3) Section 56 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 24, section 12, is further amended by adding the following subsections:

Transition

(5) An appointment of a president by the Lieutenant Governor in Council made on or after November 1, 1995 and before the date on which the Workers' Compensation and Occupational Health and Safety Amendment Act, 1995 receives Royal Assent shall be deemed to have been authorized under the Act at the time it was made.

Same

(6) The termination by the Lieutenant Governor in Council on November 1, 1995 of the appointment of each member of the board of directors then in office shall be deemed to have been authorized by law at the time it occurred.

Same

(7) No proceeding may be commenced or continued in which a decision of the Lieutenant Governor in Council appointing or replacing a president during the period beginning on November 1, 1995 and ending on the date on which the Workers' Compensation and Occupational Health and Safety Amendment Act, 1995 receives Royal Assent is challenged.

Same

(8) No proceeding may be commenced or continued in which the decision of the Lieutenant Governor in Council terminating the appointments of the board of directors as it existed on October 31, 1995 is challenged.

Same

(9) No proceeding may be commenced or continued in which the validity of a decision of the president is challenged solely on the grounds that he or she did not have the authority to exercise the powers and perform the duties of the board of directors, the chair or a vice-chair or the president during the period beginning on November 1, 1995 and ending on the date on which the Workers' Compensation and Occupational Health and Safety Amendment Act, 1995 receives Royal Assent.

Same

(10) A decision in a proceeding described in subsection (7), (8) or (9) made before the Workers' Compensation and Occupational Health and Safety Amendment Act, 1995 receives Royal Assent is unenforceable.

7. Section 58 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 24, section 13, is amended by adding the following subsection:

Same

(2) The board of directors shall act in a financially responsible and accountable manner in exercising its powers and performing its duties.

8. Section 59 of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 24, section 13, is repealed.

9. (1) Subsection 60 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 24, section 14, is further amended by striking out "each vice-chair" in the amendment of 1994.

(2) Subsection 60 (2) of the Act, as amended by the Statutes of Ontario, 1994, chapter 24, section 14, is further amended by striking out "a vice-chair" in the amendment of 1994.

10. Subsection 63 (4) of the Act is repealed.

11. Subsection 65 (2) of the Act, as re-enacted by the Statutes of Ontario, 1994, chapter 24, section 16, is amended by striking out "Seven" in the first line and substituting "Five".

12. Subsection 65.1 (4) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 24, section 17, is repealed.

13. Subsections 65.2 (1) and (2) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 24, section 18, are repealed and the following substituted:

Memorandum of understanding

(1) Every five years, the Board and the Minister shall enter into a memorandum of understanding containing only such terms as may be directed by the Minister.

Contents

(2) The memorandum of understanding must impose the following requirements:

1. Each year, the Board must give the Minister a strategic plan setting out its plans for the following five years.

2. The Board must give the Minister an annual statement setting out its proposed priorities for administering the Act and regulations.

3. The Board must give the Minister an annual statement of its investment policies and goals.

Same

(2.1) The memorandum of understanding must address any matter that may be required by order of the Lieutenant Governor in Council or by a direction of Management Board of Cabinet.

Same

(2.2) The memorandum of understanding may address the following matters:

1. Any direction by the Minister about programs to be reviewed under subsection 77 (2).

2. Any matter proposed by the Board and agreed to by the Minister.

3. Any other matter the Minister considers appropriate.

14. The Act is amended by adding the following section:

Collection of debts

66. (1) The Board may deduct from money payable to a person by the Board all or part of a debt due to the Board from the person.

Remedies

(2) The Board may pursue such other remedies as it considers appropriate to recover a debt due to it.

15. Subsection 71 (8) of the Act is repealed.

16. Section 77 of the Act is amended by adding the following subsections:

Value for money audit

(2) The board of directors shall ensure that a review is performed each year of the cost, efficiency and effectiveness of at least one program that is delivered by the Board.

Same

(3) The Minister may determine which program is to be reviewed.

Same

(4) The review must be performed under the direction of the Provincial Auditor by one or more public accountants who are licensed under the Public Accountancy Act.

17. The Act is amended by adding the following section:

Employer registration

108.1 (1) An employer in an industry included in Schedule 1 or Schedule 2 shall register with the Board within 10 days after becoming an employer.

Information requirement

(2) When registering and at such other times as the Board may require, an employer in an industry included in Schedule 1 shall provide such information to the Board as it may require to assign the employer to a class, subclass or group and to determine the amount that the employer is required to contribute under the Act.

Same

(3) When registering and at such other times as the Board may require, an employer in an industry included in Schedule 2 shall provide such information to the Board as it may require to determine the amount of any payment to the Board that may be required under the Act.

18. Subsection 109 (6) of the Act is repealed and the following substituted:

Consequence of default

(6) An employer who fails to furnish a statement required by subsection (1), (2), (3) or (4) shall pay an additional percentage of assessment or shall pay interest, as fixed by the Board.

Same

(7) An employer who does not furnish a statement by the date required under subsection (1), (2), (3) or (4) or by the date required by the Board shall pay an additional percentage ofassessment or shall pay interest, as fixed by the Board.

Same

(8) An employer who provides an insufficient estimate of the employer's expenditure for wages in a statement furnished under this section shall pay an additional percentage of assessment or shall pay interest, as fixed by the Board.

Same

(9) A payment required under subsection (6), (7) or (8) shall be in addition to any penalty imposed by a court for an offence under section 157.

19. The Act is amended by adding the following section:

Material change in circumstances

109.1 An employer shall notify the Board of a material change in circumstances in connection with the employer's obligations under the Act within 10 days after the material change occurs.

20. Subsection 111 (3) of the Act is repealed.

21. Subsection 113 (2) of the Act is repealed.

22. Subsection 114 (2) of the Act is repealed.

23. Subsection 130 (3) of the Act is repealed.

24. The Act is amended by adding the following section:

Overpayments to employers

130.1 (1) An overpayment made by the Board to an employer is a debt due and owing to the Board at the time the overpayment is made.

Amount

(2) The amount of the overpayment is as determined by the Board.

Collection

(3) In the case of an employer in an industry included in Schedule 1, the Board has the same powers and is entitled to the same remedies for enforcing payment of an overpayment as it has for payment of assessments. In the case of an employer in an industry included in Schedule 2, the Board may add the amount of an overpayment to the amount payable by the employer under subsection 137 (1).

25. Subsection 133 (2) of the Act is repealed.

26. Section 138 of the Act is repealed.

27. The Act is amended by adding the following Part:

PART V OFFENCES AND PENALTIES

Offence, deduction from wages

152. (1) A person who contravenes subsection 20 (1) is guilty of an offence.

Restitution order

(2) If a person is convicted of an offence under this section, the court shall also order the person to pay to the Board on behalf of the affected worker any sum deducted from the worker's wages or any sum that the worker was required or permitted to pay in contravention of subsection 20 (1).

Same

(3) When the court makes an order under subsection (2), the Board shall pay the sum determined under the order to the worker.

Same

(4) The sum determined under the order is a debt due to the Board from the person convicted of the offence.

Offence, contributions from workers

153. (1) An employer who, directly or indirectly, collects or receives or retains from a worker any contribution toward the expense of health care is guilty of an offence.

Restitution order

(2) The Board may order an employer who is convicted of an offence under subsection (1) to pay the Board on behalf of the worker treble the amount of any sum collected, received or retained by the employer in contravention of that subsection.

Same

(3) If the Board makes an order under subsection (2), the Board shall pay the sum determined under the order to the worker.

Same

(4) The sum determined under the order is a debt due to the Board from the employer.

Offence, regulations

154. (1) A person who contravenes a regulation made under subsection 63 (1) is guilty of an offence.

Same, rule of association

(2) A person who contravenes a rule of an association formed under subsection 135 (1) that has been approved and ratified as provided under subsection 135 (2) is guilty of an offence.

Restriction on prosecution

(3) No prosecution shall be instituted for an offence under this section except with the consent in writing of the Board.

Offence, confidential information

155. (1) An employer or employer's representative who contravenes subsection 71 (7) is guilty of an offence.

Same, Board officers, etc.

(2) A person who contravenes subsection 114 (1) is guilty of an offence.

Offence, registration, etc.

156. An employer who fails to register or to provide the information required by the Board under section 108.1 is guilty of an offence.

Offence, statements and records

157. (1) An employer who fails to comply with subsection 109 (1), (2), (3) or (4) is guilty of an offence.

Same

(2) An employer who provides a statement under subsection 109 (1), (2), (3) or (4) that is not a true and accurate statement of any of the matters required to be set forth in it is guilty of an offence.

Offence, obstruction

158. (1) A person who obstructs or hinders an examination and inquiry authorized by subsection 111 (1) is guilty of an offence.

Same

(2) A person who obstructs or hinders an inspection authorized by subsection 113 (1) is guilty of an offence.

Offence, payments

159. An employer who fails to comply with a requirement of the Board under subsection 130 (1) is guilty of an offence.

Offence, notice of accident

160. An employer who fails to comply with subsection 133 (1) is guilty of an offence.

Offence, false or misleading statement

161. (1) A person who knowingly makes a false or misleading statement or representation to the Board in connection with any person's entitlement to benefits is guilty of an offence.

Same, material change in circumstances

(2) A person who wilfully fails to inform the Board of a material change in circumstances in connection with his or herentitlement to benefits within 10 days after the material change occurs is guilty of an offence.

Same

(3) An employer who wilfully fails to inform the Board of a material change in circumstances in connection with an obligation of the employer under the Act within 10 days after the material change occurs is guilty of an offence.

Same, by supplier, etc.

(4) A person who knowingly makes a false or misleading statement or representation to the Board to obtain payment for goods or services provided to the Board, whether or not the Board received the goods or services, is guilty of an offence.

Restitution order

(5) If a person is convicted of an offence under this section, the court may also order the person to pay to the Board any money received by the person or obtained by the person on behalf of another person by reason of the commission of the offence.

Enforcement of restitution order

(6) The Board may file a certified copy of the order made under subsection (5) in a court of competent jurisdiction and thereupon the order shall be deemed to be an order of that court and may be enforced as such.

Other remedies

(7) Subsections (5) and (6) do not limit the right of the Board to take such other steps as it considers appropriate to recover money owing to it.

Restriction on prosecution

(8) A prosecution for an offence under this section shall not be commenced more than two years after the date on which the most recent act or omission upon which the prosecution is based came to the attention of the Board.

Offence by director, officer

162. If a corporation commits an offence under the Act, every director or officer of the corporation who knowingly authorized, permitted or acquiesced in the commission of the offence is guilty of an offence, whether or not the corporation has been prosecuted or convicted.

Penalty

163. A person who is convicted of an offence under the Act is liable to the following penalty:

1. If the person is an individual, he or she is liable to a fine not exceeding $25,000 or toimprisonment not exceeding six months or to both.

2. If the person is not an individual, the person is liable to a fine not exceeding $100,000.

Fines

164. Any fine paid for an offence under the Act shall be paid to the Board and shall form part of the accident fund.

PART II

OCCUPATIONAL HEALTH AND SAFETY ACT

28. Subsections 13 (2) to (8) of the Occupational Health and Safety Act are repealed and the following substituted:

Composition

(2) The Agency is composed of its executive director, who shall be appointed by the Lieutenant Governor in Council.

Transition, proceedings

(3) No proceeding may be commenced or continued in which the validity of the decision of the Lieutenant Governor in Council terminating the appointments of the board of directors of the Agency as it existed on August 22, 1995 is challenged.

Same

(4) No proceeding may be commenced or continued in which the validity of a decision of the Lieutenant Governor in Council appointing or replacing an executive director during the period beginning on August 23, 1995 and ending on the date on which the Workers' Compensation and Occupational Health and Safety Amendment Act, 1995 receives Royal Assent is challenged.

Same

(5) No proceeding may be commenced or continued in which the validity of a decision of the executive director is challenged solely on the grounds that he or she did not have the authority to act as the Agency, the board of directors, the chair, a vice-chair or the executive director during the period beginning on August 23, 1995 and ending on the date on which the Workers' Compensation and Occupational Health and Safety Amendment Act, 1995 receives Royal Assent.

Same

(6) A decision of the Lieutenant Governor in Council described in subsection (3) or (4) or a decision of the executive director described in subsection (5) made before the Workers' Compensation and Occupational Health and Safety Amendment Act, 1995 receives Royal Assent shall be deemed to be valid despite a proceeding described in one of those subsections.

29. Subsection 14 (1) of the Act is repealed and the following substituted:

Executive director

(1) The executive director of the Agency shall perform the functions of the Agency and shall manage its operations. He or she shall do so in accordance with the directions, if any, of the Lieutenant Governor in Council or the Minister.

30. (1) Subsection 16 (8) of the Act is repealed.

(2) Subsection 16 (9) of the Act is repealed and the following substituted:

Delegation

(9) The executive director may delegate in writing any of the Agency's powers or duties to an employee of the Agency who may act in the place of the Agency.

Transition

(10) A delegation by the board of directors of the Agency made before August 23, 1995 that was in effect immediately before that date shall be deemed to have been made by the executive director.

31. Subsections 17 (5) and (6) of the Act are repealed.

32. Clause 65 (1) (b) of the Act is repealed and the following substituted:

(b) the executive director or an employee of the Agency or a person who acts as an advisor for the Agency.

PART III

COMMENCEMENT AND SHORT TITLE

Commencement

33. (1) This Act, except as provided in subsections (2), (3) and (4), comes into force on the day it receives Royal Assent.

Same

(2) The following provisions shall be deemed to have come into force on August 23, 1995:

1. Sections 28 and 29.

2. Subsection 30 (2).

3. Sections 31 and 32.

Same

(3) Subsections 6 (1) and (3) and sections 8 and 9 shall be deemed to have come into force on November 1, 1995.

Same

(4) The following provisions come into force on a day to be named by proclamation of the Lieutenant Governor:

1. Subsection 6 (2).

2. Sections 7 and 11.

3. Subsection 30 (1).

Short title

34. The short title of this Act is the Workers' Compensation and Occupational Health and Safety Amendment Act, 1995.