Legal Action and Limitations

If a worker is injured on the job and is entitled to compensation or a legal claim against their employer, they can choose to receive compensation under the workers' compensation law instead.

  • If the worker or their dependents agree to release the employer from any legal claim, they can receive full compensation under the workers' compensation law.

If an accident occurs to a worker in the course of their employment, and they have the right to take legal action against someone other than their employer, they can choose to either claim workers' compensation or bring legal action.

If the worker or their dependents collect any amount from the person they are taking legal action against before actually bringing the action, it is considered as if they have brought the action.

The worker or their dependents must make the choice between claiming workers' compensation or bringing legal action within three months of the accident unless the Commission allows a longer period due to special circumstances.

If a worker is physically or mentally unable to make the choice between workers' compensation and legal action, the Commission may pay the compensation until the worker is able to make the decision.

If the worker or their dependents choose to bring a legal action, and the amount recovered is less than the compensation they would receive under workers' compensation, they are entitled to receive the difference from workers' compensation.

The Commission has the exclusive right to decide whether to bring a legal action, drop it, or reach a settlement on behalf of the worker or their dependents.

In cases where both employers were at fault for an accident, no legal action can be taken between them, but the Commission may charge compensation against the class of employer responsible for the negligence.

The provisions of workers' compensation replace all other claims and rights of action the worker or their dependents may have against the employer for the accident covered by workers' compensation.

Workers cannot waive or give up their right to workers' compensation benefits, and any agreement attempting to do so is void.

There are time limitations for filing an application for compensation. Generally, it should be done within one year of the accident, or within six months in the case of death. The Commission may extend the time period if there are valid reasons for the delay.

NB Worker’s Compensation Act s. 9-16