Vacation Time Accrual on WSIB – Ask The Expert

The Workplace Safety and Insurance Board (WSIB) provides benefits for lost pay and helps Canadian citizens recover and return to work – but can you accrue vacation time while receiving these benefits?

Understanding the eligibility of your employees to both receive WSIB benefits and accrue vacation time while they recover from illness or injury is based on several factors and the laws of your jurisdiction.

QUESTION

Is an employee eligible to accrue vacation time while on WSIB benefits?

ANSWER

An employee’s eligibility to accrue vacation time while on WSIB benefits depends on several factors, including the specific policies of the employer and the laws of their jurisdiction. In short, employers may be required to continue providing benefits like vacation time accrual if the employee is still employed during their absence. The WSIB benefit itself does not replace or account for vacation days, only lost pay while the employee in question is recovering so they can return to work.

EXPLANATION

If you are in Ontario, where WSIB is commonly applied, employees are typically entitled to accrue vacation time even if they are on WSIB benefits, as long as they are still considered an “employee” of the company during their time off due to a work-related injury or illness. The employee may continue to accumulate vacation days as part of their ongoing employment relationship, even if they are unable to perform their duties.

WSIB benefits replace a portion of an injured employee’s income while they are unable to work. However, these benefits are not considered “earnings” for the purposes of vacation pay. Under the Ontario Employment Standards Act (ESA), employees who are on WSIB leave are entitled to the same vacation benefits as other employees. This includes the accrual of vacation days.