Continued Entitlement to Compensation Payments for Loss of Earnings Policy 21-214 | Effective Date: July 1, 2024

Policy 

In certain circumstances, WorkSafeNB has authority to reduce, suspend, or end compensation payments for loss of earnings. 

Under section 41.2 of WC Act, WorkSafeNB may reduce or suspend compensation payments for loss of earnings if:

1. The worker does not attend or participate in an examination when required; or 
2. The worker does not attend or participate in medical treatment or a rehabilitation program necessary for their treatment or rehabilitation; or 
3. The worker does not cooperate in their own early and safe return to work; or
4. The worker persists in dangerous or unsanitary practices imperiling or impeding their rehabilitation.

Under sections 38.101(6) and 38.11(14) of the WC Act, WorkSafeNB ends compensation payments for loss of earnings at the earliest of the following events:

1. There is no loss of earnings resulting from the injury by accident;
2. The injured worker reaches age 65;
3. The occurrence of a personal intervening condition not related to the injury by accident that has become the dominant cause of the worker's inability to return to work or participate in rehabilitation; or
4. The occurrence of any circumstance not related to the injury by accident that has become the dominant cause of the worker's inability to return to work or participate in rehabilitation. 

If a worker is aged 63 or older at the time of the loss of earnings from the injury, or recurrence of an injury, compensation payments for loss of earnings may be extended for a period of up to two years. 

Interpretation

1. As a worker’s condition and circumstances change, WorkSafeNB is required by legislation to continuously evaluate if compensation payments for loss of earnings should continue.

2. If circumstances warrant reducing or suspending compensation payments for loss of earnings, WorkSafeNB reinstates the payments when:

• The injured worker attends, participates in, and does not obstruct the examination, treatment or rehabilitation; 
• The injured worker cooperates in their early and safe return to work; or
• The behaviours imperilling or impeding the rehabilitation have stopped or evidence concludes that the behaviours are being progressively modified.

3. When a personal condition not related to the injury by accident or a circumstance not related to the injury becomes the dominant cause of the worker’s inability to return to work or participate in rehabilitation, WorkSafeNB gathers evidence and determines if compensation payments for loss of earnings should be terminated. At the point in the claim when this is being evaluated, WorkSafeNB must conclude if it is more likely than not that the worker would have returned to work or continued rehabilitation but for the personal condition or circumstance.

4. If injured workers remove themselves from the employment relationship with their accident employer by way of voluntary retirement, loss of earnings by reason of injury ceases and compensation payments for loss of earnings will end under section 38.101(6)(a) or 38.11(14)(a) of the WC Act.

Previous Policies 

• Policy 21-214 Continued Entitlement to Compensation Payments for Loss of Earnings release 4, effective May 31, 2023
• Policy 21-214 Determining Continued Eligibility for Loss of Earnings Benefits release 3, effective January 1, 2020
• Policy 21-214 Determining Continued Eligibility for Loss of Earnings Benefits release 2, effective January 17, 2019