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:
- arises out of and in the course of their employment; and
- 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:
- work-related interpersonal conflicts, unless they constitute workplace harassment or bullying; or
- 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.
Click here to subscribe to Stewart McKelvey Thought Leadership.
Archive
Jennifer Taylor Introduction Appeal courts in Ontario1 and Nova Scotia2 have now issued decisions about Trinity Western University’s proposed law school (“TWU”) in British Columbia, and at first glance they couldn’t be more different. The Court of Appeal for…
Read MoreJoe Thorne1 and Giles Ayers2 Limitation periods serve a critical function in the civil justice system. They promote the timely resolution of litigation on the basis of reliable evidence, and permit litigants to assess their legal exposure…
Read MoreOn July 14, 2016 the Supreme Court of Canada issued a significant decision affecting federally regulated employers across Canada. In Wilson v. Atomic Energy of Canada Limited the Court held that the purpose of the unjust dismissal…
Read MoreOn April 1, 2016 New Brunswick’s Mortgage Brokers Act came into force, requiring businesses acting as mortgage brokerages or as mortgage administrators in New Brunswick to be licensed. A mortgage brokerage is a business that on behalf…
Read MoreIn May 2016, the Federal Court of Canada confirmed that copyright does not protect facts, even where a book’s author is clearly inspired by the content of a film (Maltz v. Witterick, 2016 FC 524 (CanLII)).…
Read MoreBy Jennifer Taylor “…firms of notaries or lawyers…must not be turned into archives for the tax authorities”1 So says the Supreme Court of Canada in one of two highly anticipated decisions on solicitor-client privilege, offering lawyers…
Read MoreJoe Thorne1 and Clara Linegar2 As joint owners of a business, what do you do when the business relationship falls apart? And what if one owner undermines the business in the process? In Smith v Hillier,3 Justice Paquette…
Read MoreThe Supreme Court of Canada has dismissed the appeals in Bruce Brine v. Industrial Alliance Insurance and Financial Services Inc.1 (with costs) and Luciano Branco, et al. v. Zurich Life Insurance Company Limited, et al.(without costs). Both of…
Read MoreOn May 4, 2016, the Nova Scotia Pooled Registered Pension Plans Act (“PRPP Act”) was proclaimed in force, and finalized Pooled Registered Pension Plan Regulations were released. While there were no major changes from the previously released draft regulations, the proposed rules…
Read MoreBy Level Chan and Dante Manna Pooled Registered Pension Plans (“PRPPs”) are closer to becoming a reality for Nova Scotian employers. PRPPs were established by the Federal government in an effort to address the lack of retirement savings…
Read More