If you are incarcerated in a correctional facility while receiving WSIB, your Loss of Earnings (LOE) benefits may be suspended because you are no longer available for the labour market. However, under WSIB policy, these funds can sometimes be fully redirected to your financially dependent spouse or children.
Navigating life after a severe workplace injury is hard enough, but if you unexpectedly face incarceration, the situation becomes incredibly complicated 😰. Many injured workers in Ontario mistakenly believe that going to jail or prison automatically permanently cancels all their Workplace Safety and Insurance Board (WSIB) benefits. Fortunately, this is not entirely true. While being in custody absolutely impacts how and if you get paid, the provincial policies are nuanced and designed to prevent your innocent family members from facing sudden financial ruin.
According to WSIB policy (specifically Document 18-01-11), the fundamental issue with incarceration is that you are physically removed from the open labour market. Whether you are held in a provincial facility in Milton or a federal penitentiary near Kingston, you cannot actively seek work or participate in early and safe return-to-work programs. We will explore how different types of benefits are handled during your sentence and the necessary steps to ensure your dependents are protected .
Step-by-Step Process for Managing Claims During Incarceration
Transparency is your best protection. Trying to hide a jail sentence from the WSIB can lead to fraud charges and heavy financial penalties. Here is how you or your representative should manage the transition.
Step 1: Notify the WSIB of Your Change in Status
Under Ontario law, you have a strict obligation to report any material change in circumstances to the WSIB within 10 days. You, or a trusted family member or lawyer, must contact your case manager and inform them of the date you entered custody. Failing to report this will result in overpayments that you will eventually have to pay back, and it could severely damage your credibility 📞.
Step 2: Request Redirection of Benefits to Dependents
If you have a spouse, partner, or children who rely entirely on your WSIB income to survive, they do not have to lose everything. Your legal representative or family member can officially apply to have your Loss of Earnings (LOE) benefits redirected. The WSIB will require proof of dependency, such as shared bills, marriage certificates, or child support agreements. If approved, the WSIB will send the cheque directly to your family while you serve your time .
Step 3: Coordinate Health Care Needs
Once you are incarcerated, the Ministry of the Solicitor General (provincial) or Correctional Service Canada (federal) becomes primarily responsible for your day-to-day medical care. However, if you require highly specific treatments or specialized medical devices related to your workplace injury (such as custom prosthetics or specific prescription medications), the WSIB may still coordinate and pay for these items. Ensure the facility’s medical staff has your WSIB claim number.
How Are Different Benefits Affected?
Understanding the difference between wage replacement and permanent impairment payouts is crucial 💰.
| Type of WSIB Benefit | Impact During Incarceration |
|---|---|
| Loss of Earnings (LOE) | Suspended directly to the worker, but can be redirected to financially dependent family members. |
| Non-Economic Loss (NEL) | Paid normally. This is a lump-sum for permanent physical impairment and is not tied to your ability to work. |
| Health Care Benefits | Basic care shifts to the prison system, but WSIB may cover specific injury-related therapies or equipment. |
| Return-to-Work (RTW) Services | Fully suspended until you are released and available to re-enter the Ontario workforce. |
Legal representation is highly recommended in these scenarios. A seasoned Ontario law firm can draft the necessary redirection requests and advocate for your family’s financial stability while you are unable to do so.
How Long Does the Process Take?
The timeline for managing an incarcerated worker’s file moves quickly. You must notify the WSIB within 10 days of entering custody. Once an application for the redirection of benefits to dependents is submitted, the WSIB usually makes an administrative decision within 2 to 4 weeks. Upon your release from custody, it generally takes 2 to 3 weeks to reactivate your file and reassess your current ability to work .
Frequently Asked Questions (FAQ)
What happens if I am only in pre-trial custody and not convicted yet?
The WSIB policy generally applies anytime you are physically unable to participate in the labour market or recovery programs due to being in a correctional facility. Even in pre-trial detention, your LOE benefits may be suspended or redirected until you are released on bail.
Do I get back pay for the time I was in jail?
No. Because you were not legally available to work or participate in Return-to-Work programs while incarcerated, the WSIB will not issue retroactive pay for the months spent in custody.
Will my spouse automatically get my WSIB cheques?
No, redirection is not automatic. Your spouse or dependents must actively request the redirection and provide satisfactory evidence to the WSIB that they were financially dependent on your LOE benefits prior to your incarceration.
What do I do when I am finally released?
You must notify the WSIB immediately upon your release. They will re-evaluate your medical condition and your availability for work. If you still have a work-related impairment that prevents full employment, your LOE benefits and Return-to-Work services may be reinstated.
Can WSIB take away my Non-Economic Loss (NEL) award?
No. An NEL award compensates you for the permanent loss of physical or mental function. Because it is not a wage-replacement benefit, your entitlement to an NEL payout remains completely intact regardless of your incarceration status.
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