Wage Loss Benefits while on disability and Statutory Holiday Pay

[Tammy Mack]

#97255

Forum: Community

In Saskatchewan, while an employee is on a disability claim either through WCB or group insurance, and is participating in a transitional RTW where they are not performing full scheduled hours, and the insurer is paying wage loss benefits, does the Employer pay the statutory pay or is it covered by the insurance compay?

[Haley O’Halloran]

#97256

In Saskatchewan, the employer is responsible for paying statutory holiday pay, even when an employee is receiving wage loss benefits through WCB (Workers’ Compensation Board) or a group disability insurance plan, unless the insurance or WCB explicitly covers it — which is uncommon. Here’s a breakdown of how it typically works:

1. Workers’ Compensation Board (WCB) Claims

If the employee is on a WCB claim and participating in a graduated or transitional Return-to-Work (RTW) program:

WCB pays wage-loss benefits for the portion of hours the employee is unable to work (based on their pre-injury earnings and the current reduced schedule).

The employer pays wages for the actual hours worked during the RTW.

Statutory holiday pay is not paid by WCB.

If the employee qualifies under Saskatchewan’s Employment Standards (e.g., has been employed for 13 weeks, has worked at least part of their last scheduled shift before the holiday, and is scheduled to work after), then the employer must pay the statutory holiday pay.

Even if the employee is not working their full hours, if they meet those qualifying conditions, the employer pays the stat holiday pay based on their “regular” wages, which in a transitional RTW is often calculated proportionally to their current schedule, unless there’s a collective agreement or policy specifying otherwise.

2. Group Disability Insurance (Short- or Long-Term)

If the employee is on a group disability claim (not WCB):

The insurer pays disability benefits, typically as a percentage of pre-disability earnings.

Statutory holiday pay is generally not covered by insurers. These benefits are intended to replace income, not to include extras like stat pay.

The employer is usually still responsible for statutory holiday pay if the employee maintains employment status and meets eligibility criteria (e.g., not terminated or on an unpaid leave that removes eligibility).

However, if the employee is fully off work and not participating in transitional duties, they may not meet eligibility for stat pay under the Saskatchewan Employment Standards Act. If they are actively working reduced hours as part of a RTW, they often do.

3. Relevant Saskatchewan Standards

Under The Saskatchewan Employment Act, employees qualify for statutory holiday pay if they have:

Been employed for at least 13 weeks;

Worked their last scheduled shift before the holiday and their first after;

Not refused to work on the holiday if required.

If they meet these, they receive stat pay based on average daily wages, which may be impacted by their current RTW schedule but not replaced by WCB or insurance.

Practical note: Many employers in Saskatchewan top up or continue certain benefits voluntarily, but the legal minimum is that the employer, not the insurer or WCB, is responsible for statutory holiday pay when the employee is eligible.

-HRInsider Staff

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