Yes, under Section 84 of the WSIA, an Ontario Schedule 1 employer can apply for a “Transfer of Costs” if another Schedule 1 employer’s negligence caused their worker’s injury. If WSIB denies this request, you have the right to appeal to the Workplace Safety and Insurance Appeals Tribunal (WSIAT), potentially saving your company thousands in premium hikes.
In modern business environments, it is incredibly common for multiple companies to operate in the same physical space. 📝 Whether it is a busy construction site in Mississauga, a logistics warehouse in Brampton, or a shared office tower in Ottawa, workers from different employers cross paths daily. If your employee is injured due to the direct negligence of another company’s worker, you might wonder why your business must bear the heavy financial burden of the WSIB claim.
As of May 2026, the historical “trade-off” in Canadian workers’ compensation law means that workers generally cannot sue their employers or other Schedule 1 employers in civil court for workplace accidents. However, the Workplace Safety and Insurance Act (WSIA) provides a crucial remedy for innocent employers: the Transfer of Costs mechanism. Navigating a multi-party dispute at WSIB or the Workplace Safety and Insurance Appeals Tribunal (WSIAT) is highly complex, but successfully shifting the liability can dramatically protect your premium rates.
Step-by-Step Process for Transferring WSIB Costs in Ontario
Filing a Transfer of Costs request is effectively asking the WSIB to act as a judge between two Ontario businesses. 📍 Most applicants in this province choose to hire an experienced workers’ compensation lawyer, as the burden of proving the other employer’s negligence rests entirely on you.
Step 1: Identify the Negligent Third Party
The first step is gathering immediate evidence that another employer was at fault. For example, if your delivery driver is rear-ended by a truck owned by a different Ontario company, or if your plumber is injured because a separate electrical contractor left exposed wiring on a job site. You must confirm that the negligent party is also a Schedule 1 employer registered with the WSIB.
Step 2: Submit a Formal Request to WSIB
You cannot wait for WSIB to figure out the negligence on their own. 💼 You must submit a formal, written request to the WSIB adjudicator asking for relief under Section 84 of the WSIA (or Section 14 if it involves a motor vehicle accident). This submission must outline the facts, demonstrate clear negligence by the other party, and cite relevant legislation, such as the Highway Traffic Act or the Occupational Health and Safety Act.
Step 3: Await the Initial WSIB Decision
The WSIB will review your submission, contact the other employer to get their side of the story, and eventually issue a written decision. The other employer will fight hard against your request, as accepting the transfer means their own WSIB premiums will skyrocket. It is highly common for WSIB to deny initial requests if the negligence is not overwhelmingly obvious.
Step 4: File an Intent to Object and Appeals Resolution Officer (ARO)
If your Transfer of Costs is denied, you must file an Intent to Object within six months. 📄 The case will then move to an internal WSIB Appeals Resolution Officer (ARO). The ARO will review the file, but because these cases involve complex determinations of legal liability, internal appeals often uphold the initial denial.
Step 5: Elevate the Appeal to the WSIAT
The final and most crucial step is appealing the ARO’s decision to the independent Workplace Safety and Insurance Appeals Tribunal (WSIAT). At the WSIAT, you and your legal representation will face off against the opposing employer in a formal hearing. You will present witness testimony, expert reports, and legal arguments to prove the other employer’s negligence on a balance of probabilities.
| Scenario | Can You Apply for Cost Transfer? | Typical Outcome if Successful |
|---|---|---|
| Motor Vehicle Accident (MVA) | Yes, if the at-fault driver is also Schedule 1 | Costs transferred based on police fault determination |
| Shared Construction Site Hazard | Yes, if clear negligence is proven | Costs apportioned (e.g., 50/50 or 100% transfer) |
| Injury Caused by Private Citizen | No, citizens are not Schedule 1 employers | Worker may choose to sue civilly (Third Party Election) |
How Much Does a Multi-Party Appeal Cost?
Fighting another company at the WSIAT is effectively a corporate litigation battle. 💰 While the tribunal itself does not charge filing fees, the associated costs can be significant, though usually worth the investment.
- Lawyer Fees: Retaining an employment or WSIB lawyer in Ontario for a full WSIAT hearing typically costs between $5,000 and $15,000 CAD, billed at an hourly rate of $350 to $600 CAD.
- Expert Witnesses: If you need an accident reconstruction expert or an independent safety auditor to prove negligence, their reports can cost $2,500 to $5,000 CAD.
- Potential Savings: Successfully transferring a serious claim can save an employer anywhere from $20,000 to over $100,000 CAD in future premium surcharges under the rate-setting model.
How Long Does the Process Take?
Multi-party appeals are notoriously slow because they require coordinating the schedules of two different employers, their respective lawyers, and the tribunal. 🕑
- Initial WSIB Decision: Gathering facts and getting a first ruling from WSIB usually takes 3 to 6 months.
- ARO Internal Appeal: Processing an appeal through the Appeals Resolution Officer generally adds another 6 to 9 months.
- WSIAT Hearing: Wait times for a WSIAT hearing are currently substantial. Once requested, it can take 12 to 18 months to get a hearing date, and another 3 to 4 months to receive the final written decision.
Frequently Asked Questions (FAQ)
What happens if both employers are partially at fault?
In Ontario, the WSIB and WSIAT can apportion liability. If the tribunal determines that you were 25% negligent and the other employer was 75% negligent, the claim costs will be split accordingly on your respective WSIB records.
Can my employee still get WSIB benefits while we fight over who pays?
Yes, absolutely. A Transfer of Costs dispute is purely a financial argument between employers. It does not delay or pause the injured worker’s medical care or Loss of Earnings (LOE) payments. The worker is largely insulated from the corporate appeal process.
What is a Schedule 1 vs Schedule 2 employer?
Schedule 1 employers (most private businesses in Ontario) pay into a collective insurance pool. Schedule 2 employers (like municipalities, railways, and provincial governments) self-insure and pay claim costs directly. Transfer of Costs rules generally apply between Schedule 1 employers.
If the other company is from Quebec, can I transfer costs?
It becomes highly complicated. Section 84 typically applies to Ontario Schedule 1 employers. If an out-of-province company is at fault, your worker may have the option to elect a civil lawsuit (Third Party Election) rather than claiming WSIB, which would also remove the costs from your record.
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