Discussion Paper - Compensation of Principals
The principal of a corporation or other similar entity is generally a worker under the Workers Compensation Act. Unlike other workers, where a principal "receives nominal or no wages for the work done", policy set out that the principal received wage loss benefits based on an estimate of a reasonable wage for the work. In these situations, a principal's firm paid little or no premiums in respect of the coverage received. At issue was a review of policy on the composition of principals' earnings to determine if policy should continue to treat principals differently from other workers.
Consultation closed August 17, 2007.