WSIB Announces the End of SIEF Cost Relief
The Workplace Safety and Insurance Board (WSIB) has announced that the Secondary Injury and Enhancement Fund (SIEF) is being phased out, effective June 16, 2026. For employers, this is an important development because SIEF has long played a role in reducing claim costs in cases where a worker’s pre-existing condition affected the outcome of a workplace injury or disease.
Under the WSIB’s update, businesses currently receiving SIEF relief will continue to receive that relief for the duration of their existing applicable claims. The WSIB will also review all SIEF requests received before July 16, 2026.
For employers, the practical impact is significant. With the loss of SIEF, claim management will become even more important in controlling WSIB costs.
What SIEF Did
Under the SIEF policy, if a prior disability caused or contributed to a compensable accident, or if the period resulting from an accident became prolonged or enhanced because of a pre-existing condition, all or part of the compensation and health care costs could be transferred from the accident employer in Schedule 1 to the Secondary Injury and Enhancement Fund.
In effect, SIEF helped reduce employer claim costs where a worker’s pre-existing condition played a meaningful role in the claim outcome. That cost relief will no longer be available for new matters once the phase-out takes effect.
Why the Change Matters for Employers
The end of SIEF means employers may now bear a greater share of claim costs in cases involving complex medical histories or pre-existing conditions. That makes the early stages of a claim especially important.
Employers need to be diligent in the initial investigation of every claim. Thorough documentation at the outset can be critical, particularly where there is any indication of a pre-existing condition. We recommend that all accidents be documented carefully, including photographs, weights, measurements, and any other information that may help establish the severity of the injury and the surrounding circumstances.
That evidence can become especially important when the extent of the workplace injury must be assessed against a prior medical condition.
Pre-Existing Conditions and WSIB Entitlement
Even where there is evidence of a pre-existing condition, Board policy may still allow entitlement for a workplace injury. Under Policy 15-02-03, Pre-existing Conditions, entitlement may be limited if the clinical evidence shows that the significance of the pre-existing condition is so great that it has overwhelmed the impact of the work-related injury or disease, rendering it insignificant. In that situation, benefits may be ended if the policy threshold is established.
Policy 15-02-04, Aggravation Basis, also allows entitlement, but the entitlement is monitored and limited. Once the worker has returned to the pre-accident state, benefits may be discontinued.
These policies make it clear that pre-existing conditions can materially affect entitlement and duration of benefits. For employers, that means the medical and factual record developed early in the claim can have lasting consequences.
Claims Management Will Be Critical
With the phase-out of SIEF, employers should expect greater pressure on claims management. The loss of cost relief increases the importance of identifying issues early, gathering evidence promptly, and challenging claims where appropriate.
Employers should be proactive in assessing both entitlement and causation, especially where a known pre-existing condition exists. If the facts support it, entitlement decisions should be challenged and appealed within the applicable six-month period.
In practical terms, this means employers should not wait until a claim has progressed before reviewing whether the injury is truly work-related, whether the extent of the injury is supported by the evidence, and whether a pre-existing condition is affecting the claim outcome.
Practical Steps for Employers
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Investigate all incidents promptly and thoroughly.
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Document the scene and the injury with photographs, measurements, weights, and other relevant details.
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Identify any known pre-existing conditions as early as possible.
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Review medical and factual evidence carefully to assess causation and entitlement.
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Challenge entitlement decisions where the evidence supports doing so.
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Appeal adverse entitlement decisions within six months.
These steps will not eliminate claim costs, but they can help employers better manage risk in a WSIB environment where cost relief through SIEF is no longer available for new claims.
Conclusion
The phase-out of SIEF represents a meaningful change for employers in Ontario. While existing applicable claims will continue to receive relief, the end of the program will likely increase the importance of early investigation, careful documentation, and active claims management.
Employers should be especially attentive where a pre-existing condition may affect entitlement or the duration of benefits. If you are dealing with a claim that may be affected by this change, or if you are unsure how best to respond, it is advisable to seek advice early in the claim process.