The WSIB Announces the Elimination of SIEF: Now What?

On July 16, 2026, the Workplace Safety and Insurance Board (the “WSIB”) published revisions to its Operational Policy Manual Document Number 14-05-03, announcing the closure of the Second Injury and Enhancement Fund (“SIEF”) effective June 16, 2026. ‍

Background: What is SIEF?

SIEF was a cost relief policy available to Schedule 1 employers under the Workplace Safety and Insurance Act, 1997. Where a pre-existing disability resulted or played a role in a compensable work-related injury, or prolonged or enhanced a work-related disability, SIEF provided Schedule 1 accident employers with financial relief by assuming all or part of the compensation and health care expenses from the employer.

SIEF provided many employers with extraordinary cost relief; in cases involving more serious injuries and lengthy absences from work, employers were able to realize hundreds of thousands of dollars in WSIB cost savings.

Revised Policy: What Do These Changes Mean?

The amended policy preserves SIEF relief already provided or requested prior to June 16, 2026, while limiting access to new relief moving forward. The WSIB will continue to review all SIEF requests submitted before June 16, 2026, through its streamlined process to determine any entitlement or related adjustments. Existing SIEF credits will continue to apply for the duration of the applicable claims and will remain relevant in determining employers’ risk-adjusted premium rates.

Going forward, however, SIEF cost relief will generally not be available in claims where it was not already granted or requested before June 16, 2026.

Implications for Employers

For Schedule 1 employers, the closure of SIEF removes a significant avenue for reducing the costs associated with workplace injury claims. As a result, employers may face greater financial consequences, particularly in relation to claims impacted by an employee’s pre-existing condition. Without SIEF relief, it is even more important that employers review WSIB claims carefully as soon as workplace injuries are reported or occur, and consider disputing initial entitlement when completing the employer’s Form 7 report of injury.   

The existence of a pre-existing disability will not in itself preclude a worker from entitlement to WSIB benefits where the WSIB finds sufficient evidence of a work-related illness or injury.  However, a pre-existing condition may remain relevant to the assessment of the worker’s entitlement moving forward. Employers should accordingly remain mindful of the WSIB’s Operational Policy Manual, Pre-Existing Conditions Document Number 14-05-03 on Pre-Existing Conditions and Operational Policy Manual, Aggravation Basis Document Number 15-02-04, and consider whether either policy is engaged when reviewing claims. The WSIB is required under both policies to consider the impact of a pre-existing physical or psychological condition on a worker’s impairment when assessing ongoing entitlement which may, in appropriate circumstances, effectively result in a reduction or discontinuation of entitlements. Nonetheless, the circumstances in which employers can benefit from cost reductions based on pre-existing disabilities are now significantly reduced with the elimination of SIEF. The foregoing is for informational purposes only and should in no way be relied upon as legal advice. For legal advice tailored to your circumstances and business, please contact Joel Smith or any of the SOM LLP lawyers by email or telephone