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Workers Compensation Amendment Act, 2011 (“Bill 14”)

The Workers Compensation Amendment Act, 2011 (“Bill 14”) received Royal Assent on May 31, 2012.

Key legislative changes enacted include:

  • Compensation for Mental Disorders
  • Calculation of Long-term Average Earnings for Apprentices or Learners
  • Consumer price index adjustments to the dollar values in the Act.

These legislative changes came into force on July 1, 2012.

Highlights of the amendments are as follows:

Issue Previous Provision Amended Provision
Compensation for Mental Disorders A worker may be entitled to compensation only if the mental stress is an acute reaction to a sudden and unexpected traumatic event arising out of and in the course of employment.

A worker may be entitled to compensation only if the mental disorder:

  • is a reaction to one or more traumatic events arising out of and in the course of the worker’s employment; or
  • is predominantly caused by a significant work-related stressor, or a cumulative series of significant work-related stressors, arising out of and in the course of the worker’s employment.
Calculation of Long-term Average Earnings for Apprentices or Learners

The long-term average earnings are based on the gross earnings for the 12 month period immediately preceding the date of injury, of a qualified person employed at the starting rate in the same trade, occupation or profession:
(a) by the same employer, or

(b)       if no person is so employed, by an employer in the same region.

The long-term average earnings would be based on the greater of:

  • time of injury earnings; or
  • the worker’s earnings during the 12 month period immediately preceding the injury.

In the event of a permanent disability, the calculation of average earnings would be based on the gross earnings for the 12 month period immediately preceding the date of injury, of a qualified person employed in the same trade, occupation or profession:
(a) by the same employer, or

(b)       if no person is so employed, by an employer in the same region.
Consumer Price Index (“CPI”) Adjustments Dollar values in the Act are updated annually by CPI and the new figures are contained in a Board minute. Dollar values in the Act are updated annually by CPI and the new figures are contained in a Board minute.