Canadian Province’s new rules for workers’ comp take effect

After a comprehensive review completed in 2024 and new legislation introduced in the fall, Nova Scotia will roll out changes to its workers’ compensation system with the start of the new year.

According to the Workers’ Compensation Board of Nova Scotia (WCB Nova Scotia), most of the legislative amendments to the Workers’ Compensation Act will come into force on Jan. 1, 2026, with key benefit improvements — including full cost‑of‑living indexing — following in 2027.

The Department of Labour, Skills and Immigration says the intent is to make it easier for people who are hurt on the job to access the support they need, recover, return to work and care for their families, while employers gain more certainty and better information to help injured workers.

The changes build on the Stronger Workplaces for Nova Scotia Act passed in September 2024 and stem from the first full review of the workers’ compensation system in more than two decades, which drew input from over 1,000 Nova Scotians.

Major boost to benefits and cost‑of‑living protection

The government says the overhaul of cost‑of‑living protections is one of the most significant gains for injured workers. The amendments will increase the cost‑of‑living adjustment on benefits from 50 per cent to 100 per cent of the consumer price index, up to three per cent each year, starting in 2027.

WCB Nova Scotia says this means that workers’ benefits will better keep pace as prices rise, enabled by the organization’s strong financial position without raising average employer premiums.

The reforms also broaden survivor benefits, according to WCB Nova Scotia. In cases where a worker dies because of a workplace injury, survivor benefits will now extend not just to dependent children but to other dependants, and benefits may be paid to the worker’s estate if there are no dependants at all.

In September, the government of Nova Scotia announced that WCB Nova Scotia plans to reduce the average employer rate in 2027 — the first rate cut in more than 30 years.

Expanded eligibility for WCB in Nova Scotia

The changes also broaden who is recognized and covered under the Act. On family status, the government of Nova Scotia says the law will “modernize the definition of ‘spouse’ from ‘husband and wife,’” while WCB Nova Scotia notes that the Act now explicitly includes common‑law partners and same‑sex spouses.

Firefighters will also see a notable improvement in coverage, according to both sources. The government of Nova Scotia confirms that presumptive cancer coverage — which treats certain cancers as work‑related without requiring workers to prove causation — will be expanded to wildland firefighters and fire investigators, aligning them with municipal firefighters.

The reforms aim to accelerate decision‑making when new medical information surfaces. WCB Nova Scotia explains that if new evidence comes forward during an appeal, it will be sent back to the original decision‑maker to be reassessed, rather than having workers wait through additional layers of appeal. The board says this change is designed to produce faster, more accurate outcomes and reduce unnecessary delays for injured workers and their families.

Faster appeals and improved access to WCB system

The appeal process itself is being significantly adjusted to give workers more breathing room. The government of Nova Scotia notes that the deadline to appeal a claim decision will be extended from 30 to 90 days, making it easier for people to gather medical records, seek advice and fully consider their options.

WCB Nova Scotia also points to a host of technical and administrative amendments aimed at making the Act clearer and easier to navigate.

These include:

    • clarifying how Canada Pension Plan and Quebec Pension Plan disability benefits interact with WCB benefits
    • removing outdated language around chronic pain while confirming chronic pain remains a compensable injury
    • converting annuity payments to lump sums at age 65 to reflect current practice
    • simplifying fatality reporting by removing duplicate requirements for hospitals
    • lifting restrictions on funding for workplace safety research and prevention programs.

New obligations and tools for employers

Employers will see both new responsibilities and some important advantages. Under the amended Act, employers will be required to report workplace injuries within two days instead of five, with the goal of improving timely access to benefits and speeding up return‑to‑work planning.

At the same time, employers will gain better access to information that helps them accommodate injured workers as employers will be given functional ability information — for example, lifting restrictions — so they can offer safe modified duties. The WCB stresses that only information necessary for safe accommodation will be shared, to protect worker privacy while improving return‑to‑work outcomes.

The cost structure of claims is also changing in employers’ favour in at least one respect. WCB Nova Scotia notes that transportation expenses to get an injured worker to care, such as ambulance services, will now be treated as part of overall claims costs rather than a separate bill for employers. The Board describes this as “one less thing to think about during an already stressful time,” suggesting an effort to simplify administration for businesses at the moment a serious injury occurs.

Regulatory transparency and ongoing benefit reviews form another piece of the reform package. WCB Nova Scotia says it will have the option to publish the names of employers who receive administrative penalties, a move intended to encourage compliance and reassure workers that enforcement is taken seriously. The Board also notes that Extended Earnings Replacement Benefits can now be revisited when a worker’s circumstances change, instead of waiting for the standard three‑year or five‑year review intervals, which is meant to make the system more responsive and fair for both workers and employers.

Original Article – Occupational Health & Safety