Human Resources Legislative Update
WSIB Announces Closure of Second Injury and Enhancement Fund as of June 16, 2026
Date: July 21, 2026
On July 16, 2026, following its recent audit of the Second Injury and Enhancement Fund (SIEF), the Workplace Safety and Insurance Board (WSIB) amended its Operational Policy Manual (OPM) Document Number 14-05-03 (Policy) to announce SIEF’s closure effective June 16, 2026.
The amended Policy applies to all decisions made on or after June 16, 2026, for all accidents. It also applies to cost relief provided under SIEF prior to June 16, 2026.
What is SIEF?
Under the Workplace Safety and Insurance Act, 1997 , SIEF applies to Schedule 1 employers. Its purpose is to encourage Schedule 1 employers to hire workers with physical and psychological disabilities. If a prior disability caused or contributed to the compensable accident, or if the period resulting from an accident becomes prolonged or enhanced due to a pre-existing condition, all or part of the compensation and health care costs may be transferred from the Schedule 1 accident employer to the SIEF.
Amended Policy
The amended Policy provides that:
- all SIEF requests submitted prior to June 16, 2026, will be accepted and reviewed and follow the WSIB’s streamlined process to make eligibility decisions.
- all current SIEF credits will continue for the duration of their existing applicable claims.
The amended Policy provides in its SIEF wind-down section that:
- cost relief under SIEF will not be provided in claims where it has not already been provided, and
- the amount of cost relief already provided under SIEF as of June 16, 2026, will not be adjusted, except as a result of an appeal, or as outlined below:
- For all requests received prior to June 16, 2026, the WSIB will determine entitlement to cost relief under SIEF, and adjustments to the amount of cost relief will be provided.
- Cost relief provided under SIEF as of June 16, 2026 will continue to be applied and taken into consideration when determining employers’ risk-adjusted premium rates.
- Cost relief provided under SIEF or adjustments to the amount of cost relief provided on or after June 16, 2026, as a result of a request received before June 16, 2026, will be applied and taken into consideration when determining employers’ risk-adjusted premium rates.
Please note that while the amended policy ends SIEF effective June 16, 2026, in their announcement on July 16, 2026, the WSIB advised that they will review all SIEF requests submitted before July 16, 2026.
What Can Employers Do?
With the loss of cost relief under the SIEF, employers must be proactive in challenging the extent of causation of injuries and illnesses, particularly in cases where there is evidence of a pre-existing condition or a pre-accident impairment. Employers can do this by appealing initial entitlement and reviewing the relevant medical information and facts of the case to determine if there is sufficient evidence to challenge causation and argue that the worker’s diagnosis is a result of a pre-existing condition or a pre-accident impairment.
However, if the WSIB is satisfied that there is evidence of a work-related injury or illness, a pre-existing condition or a pre-accident impairment does not preclude entitlement. In such cases, employers should be vigilant in requesting that the WSIB review the impacts of prior medical conditions on compensable injuries or illnesses under the WSIB’s OPM Pre-Existing Conditions Policy 15-02-03 and OPM Aggravation Basis Policy 15-02-04. Both policies require the WSIB to consider the impact of the pre-existing condition or pre-accident impairment when reviewing ongoing entitlement, and such a review may result in the limitation or ending of entitlement to WSIB benefits.
If you have any questions, please consult with Stephanie Savoni or any member of our Workplace Safety & Insurance Group.
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