If you are injured in a car accident while working in Newfoundland and Labrador, you must make a legal choice: claim standard WorkplaceNL benefits OR sue the at-fault driver in civil court. Filing a WorkplaceNL claim costs nothing, but a civil lawsuit could offer significantly higher compensation for pain and suffering.
Understanding Motor Vehicle Accidents on the Job
Many jobs in Newfoundland and Labrador require you to be behind the wheel. Whether you are a delivery driver navigating the steep hills of St. John’s, a salesperson travelling across Conception Bay South, or a care worker visiting homes in Corner Brook, the road is your workplace. If you are involved in a motor vehicle accident (MVA) while performing your job duties, the legal situation becomes highly complex. You are suddenly caught between the workers’ compensation system and standard automobile insurance laws.
In a normal workplace injury, you are barred from suing anyone and must take WorkplaceNL benefits. 🚨 However, a car accident is often the big exception. If the driver who hit you is a “third party” (meaning they do not work for your company and were not on the job themselves), you generally have a choice to make. Under Section 45 of the Workplace Health, Safety and Compensation Act, you must formally elect (choose) which legal path you want to take. You generally cannot collect full benefits from both systems simultaneously.
Making this “Election of Remedies” is arguably the most important financial decision you will make following your accident. WorkplaceNL covers lost wages and medical bills, but it will never pay you for “pain and suffering.” A civil lawsuit against the at-fault driver’s insurance, however, can result in a much larger settlement. Before you sign any election forms, it is highly recommended that you speak with a local law firm to evaluate which option will provide the best financial outcome for your family.
Step-by-Step Process in Newfoundland and Labrador
Handling a work-related car accident requires managing both employer obligations and insurance protocols. The steps you take in the first few days can significantly impact your legal rights. Here is the general process to follow.
Step 1: Seek Immediate Medical Care
Your health is always the top priority. 👨⚕️ Call an ambulance or visit the nearest emergency room immediately. Tell the attending physician exactly how the accident happened and ensure they note that you were driving for work. This medical documentation is critical, whether you choose to use WorkplaceNL or pursue a civil lawsuit.
Step 2: Report to the Police and Your Employer
Because it is a motor vehicle accident, you must report it to the Royal Newfoundland Constabulary (RNC) or the RCMP, especially if there are injuries or significant property damage. Furthermore, you must notify your employer immediately. Your employer is legally required to submit a Form 7 (Employer’s Report of Injury) to WorkplaceNL within 3 days of learning about the accident.
Step 3: Understand the “Election” Deadline
Shortly after the accident is reported, WorkplaceNL will send you an Election Form. You must formally declare whether you are claiming WorkplaceNL benefits or taking civil action against the at-fault driver. You usually have a strict deadline (often 3 months) to make this choice. Do not rush to sign this form without seeking independent legal advice.
Step 4: Option A – Choosing WorkplaceNL
If you choose to stay with WorkplaceNL, you will fill out the Worker’s Report of Injury (Form 6). 📄 This route is “no-fault,” meaning you get benefits even if you caused the accident. WorkplaceNL will quickly start paying a percentage of your lost wages and cover your physiotherapy. In return, WorkplaceNL takes over your right to sue the at-fault driver (they may sue the driver themselves to recover the money they paid you).
Step 5: Option B – Pursuing a Civil Lawsuit
If you elect to sue the at-fault driver, your lawyer will file a Statement of Claim in the Supreme Court. Your lawyer will seek compensation from the other driver’s auto insurance policy. This route allows you to claim 100% of your lost income, future earning capacity, and general damages for pain and suffering. However, civil lawsuits take time, so you must rely on your own auto insurance (Section B benefits) or short-term disability to survive while the case is pending.
How Much Does it Cost in Newfoundland and Labrador?
The path you choose dictates your upfront and overall costs. 💰 Pursuing a civil claim involves legal fees, but lawyers generally only get paid if you win. Here is a breakdown of expected costs in CAD:
| Expense Type | Estimated Cost (CAD) |
|---|---|
| WorkplaceNL Filing Fee | $0 |
| Civil Lawyer Fees (Contingency) | Typically 30% – 33% of your final settlement |
| Medical Reports for Court | $100 – $300 per report |
| Court Filing Fee (Statement of Claim) | $140 – $160 |
How Long Does the Process Take?
The timeline varies drastically based on your election. If you choose WorkplaceNL, your wage-loss benefits can start arriving within 2 to 4 weeks. If you choose to pursue a civil lawsuit, you are looking at a much longer horizon. A civil motor vehicle claim in Newfoundland and Labrador generally takes 1 to 3 years to reach a final settlement or trial verdict.
Frequently Asked Questions (FAQ)
What if the driver who hit me was also working?
This is a critical rule. Under Newfoundland and Labrador law, if both you and the at-fault driver were working in the course of employment for companies covered by WorkplaceNL, you are legally barred from suing them. You must use the WorkplaceNL system.
Am I covered by WorkplaceNL if I crash while commuting?
Generally, no. Your normal commute from your home to your regular place of employment is not considered “working.” However, if you were running an errand for your boss on the way to work, you might be covered. A lawyer can help clarify this nuance.
Will my boss be angry if I choose to sue the driver?
Your boss should not be angry. In fact, if you elect to sue a third party, your employer’s WorkplaceNL claims record is protected, which can actually prevent their insurance premiums from going up. It is entirely your legal right to choose.
Can I change my mind after I sign the Election form?
It is incredibly difficult to change your election once it is formally submitted and approved by WorkplaceNL. This is why you must speak to a personal injury lawyer before signing any forms provided by the government.
What happens if I sue but the settlement is very small?
If you properly elect to pursue a third-party action and your final settlement is less than what you would have received from WorkplaceNL, the Act does have provisions where WorkplaceNL may top up the difference, provided you followed all their rules and kept them informed.
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