Legal Action and Limitations
If an employee is injured on the job due to the actions of someone other than their employer, the employee or their dependents can choose to either claim workers' compensation or bring legal action against the other person.
If they choose to bring a legal action and the amount they recover is less than the amount of compensation they would have received, the workers' compensation board may authorize additional payment.
If the employee or their dependents have claimed workers' compensation, the board can take legal action against the other person on behalf of the employee.
However, if the accident was caused by the use of a motor vehicle, the employee may not be entitled to benefits under this Part.
An award for damages in a legal action should include the cost of medical aid, any other benefits listed in the Worker’s Compensation Act, and legal costs.
Neither the employee, their dependents, nor their employer can take legal action against another employer or employee within the same industry if the employee was injured while on the job.
The right to compensation provided by the Worker’s Compensation Act is in lieu of all other rights and actions that a worker or their dependents may have against the employer.
Workers cannot waive or forego any benefits that they or their dependents are entitled to under this law. Any agreement to waive these rights is considered void.
Employers shall not deduct any part of the compensation they are liable to pay from their workers' wages or require workers to contribute towards indemnifying the employer against any liability for worker’s compensation.
Any employer who violates this provision is guilty of an offence and may face a fine of up to $5,000. They may also be required to repay any sum that was deducted from the worker's wages.
No compensation payable to a worker or their dependents can be assigned, charged, or attached, except in certain circumstances specified by the Workers Compensation Board.
Decisions on compensation claims should be made in accordance with the real merits and justice of the case. If the evidence for or against an issue is approximately equal in weight, the issue should be resolved in favour of the claimant.
Legal Action
If a worker is injured due to a problem with the equipment or location of their workplace, or because their employer or a coworker was negligent, they can sue their employer for damages.
If the work is being done by a contractor or sub-contractor, the person who hired them can also be held responsible.
However, if the worker knew about the problem that caused their injury, they can't be considered to have accepted the risk.
If a worker is injured due to the negligence of a coworker, they can still sue their employer for damages, but any contribution to the injury due to their own actions will be taken into account when assessing the damages they can receive.
PEI Worker’s Compensation Act s.11-17, 88-90