Impending changes to Nova Scotia’s Workers’ Compensation Act – Gradual onset stress

By Mark Tector and Annie Gray

What’s changing?

Currently, workers’ compensation coverage in Nova Scotia applies to only a narrow subset of psychological injuries.

Specifically, in Nova Scotia – as in all Atlantic Provinces – “stress” will only constitute an “accident” for workers’ compensation purposes when it arises as “an acute reaction to a traumatic event.”

However,  starting from September 1, 2024, Nova Scotia workers’ compensation coverage will extend to gradual onset stress.

What does this mean for employers?

Details

When these changes come into effect, covered workers in Nova Scotia will be entitled to compensation for stress which:

1. arises out of and in the course of their employment; and
2. is wholly or predominantly caused by one or more significant work-related stressors or a cumulative series of significant work-related stressors.

While compensation for cumulative workplace stressors marks a significant change, workers will still not be entitled to compensation in respect of stress caused by:

1. work-related interpersonal conflicts, unless they constitute workplace harassment or bullying; or
2. labour relations decisions (e.g., changes in working conditions, discipline or termination of employment).

Timing

Changes to Nova Scotia’s Workers’ Compensation Act (“WCA”), together with new Workers’ Compensation Board (“WCB”) policy, will come into effect of September 1, 2024.

Employees whose stress-related claims were finally decided by the WCB (and were either not appealed or had their appeals denied by the Workers’ Compensation Appeals Tribunal (“WCAT”)) prior to September 1, 2024 are not permitted to re-file their claims under the new rules.

However, workers who file stress claims on or after September 1, 2024, will have their claims adjudicated under the new rules, regardless of when the stress at issue first occurred (subject to applicable limitation periods under the WCA).

Additionally, stress claims which remain pending before the WCB as of September 1, 2024 will be decided in accordance with the new rules. Similarly, stress claims pending before WCAT as of September 1, 2024 will be referred back to the WCB to be decided in accordance with the new rules.

Broader Implications

In the face of this increased scope of WCB coverage, employers should review and refresh their respectful workplace policies and training, and consider taking additional steps to foster a psychologically safe workplace.

Additionally, employers faced with claims in other venues which include allegations of stress-related injuries are encouraged to reach out to us as early in the process as possible to assess whether such claims may fall within the exclusive jurisdiction of WCB.

Upcoming webinar

Stewart McKelvey will be hosting a webinar on June 18, 2024 titled “Protecting your Workplace: Gradual Onset Stress “.

Please contact Alicia Gordon, Events Coordinator, at acgordon@stewartmckelvey.com for more information.

This client update is provided for general information only and does not constitute legal advice. If you have any questions about the above, please contact the authors, or a member of our Labour & Employment Group.

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