Legal Action and Limitations

The rights provided through worker’s compensation replace any other rights or legal actions that a worker, their dependents, or their employer may have against the employer or any other employer, their employees, or agents regarding personal injuries suffered by the worker during their employment.

  • This applies to injuries for which compensation is payable under this part of the law and that occur within industries covered by this law. However, this provision doesn't apply when the injury is a result of a motor vehicle accident involving a vehicle registered under the Motor Vehicle Act.

Any party involved in a legal action can apply to the Chief Appeal Commissioner of the Appeals Tribunal to determine whether the right to take legal action is barred by this part of the law.

  • The Appeals Tribunal has exclusive jurisdiction to make this determination, and its decision is final and cannot be appealed in any court. If the Tribunal determines that the right to take legal action is barred, the action is permanently halted.

A worker or their dependents may bring an action against a third party if the worker suffers a work-related injury that entitles them to take legal action against someone other than those against whom legal action is barred. To do so, they must provide written notice to the Workers' Compensation Board indicating their election to bring such an action. This notice must be submitted within 180 days of the accident, and no extensions are allowed.

If compensation has been paid by the Board prior to the election, the Board becomes subrogated to the worker's position and has the right to be repaid from any amount the worker receives from the action.

  • If no election notice is received by the Board within 180 days, the Board assumes the position of the worker or their dependents in the legal action.

Any money recovered through an action or settlement must be paid to the Board. If the amount exceeds the compensation payable to the worker and other expenses determined by the Board, the excess amount is paid to the worker or their dependents. Additionally, if the Board accepts a full settlement, the person or party paying the money is released from any further liability.

If a worker or their dependents have a right to take legal action in another jurisdiction for the loss of earnings or permanent impairment for which compensation is payable, the Board may request the worker to take action in that jurisdiction. The worker must assign the right to damages recoverable from that action to the Board, and the Board may withhold compensation until the action is taken or the assignment is made.

No party shall bring forth an action from bringing a contribution or indemnity claim against an employer or worker who is barred from being sued under this part of the law.

If the defendant is barred from taking third-party proceedings against an employer or worker, and the employer or worker contributed to the plaintiff's damage or loss, the court can hold the defendant liable only for the portion of the damage or loss caused by their own fault or negligence.

NS Worker’s Compensation Act s. 28-33