Glossary

In addition to the terms defined in Section 1(1) of the Workers' Compensation Act, RSA 2000, there are a number of other terms and abbreviations commonly used by the Alberta WCB. The abbreviations are listed with the full name. The sources for the definition of terms are included with each definition.

ABBREVIATIONS:

AC - Appeals Commission
Act - The Workers' Compensation Act, RSA 2000
AIRA - Adult Interdependent Relationships Act
BoD - Board of Directors
CA - case assistant
CC - Clinical Consultant
CM - case manager
COLA - cost-of-living adjustment
Comp - compensation benefits
DOA - date of accident
DRDRB - Dispute Resolution and Decision Review Body
EACM - end of active case management
EEC - estimating earning capacity
ELP - Economic Loss Payment
ELS - Earnings Loss Supplement
FFW - fit for work
HMA - home maintenance allowance
IME - independent medical examination
MA - medical advisor
MC - Medical Consultant
MIE - maximum insurable earnings
NELP - Non-Economic Loss Payment
NIHL - noise-induced hearing loss
NP/NOP - nature of payment code
OAA - Office of the Appeals Advisors
PC - personal coverage
PCA - personal care allowance
PCI - Permanent Clinical Impairment
PDC - Permanent Disability Compensation
PIA - Permanent Injury Award
PIR - Partners in Injury Reduction
PPD - permanent partial disability
PTD - permanent total disability
RTW - return to work
TOJ - training on the job
TP/TOP - type of payment
TPD - temporary partial disability
TTD - temporary total disability
VR - vocational rehabilitation
 

TERMS & DEFINITIONS:

Accident
"Accident" is used in the usual and ordinary sense, and means an unexpected mishap or event. For the purposes of workers' compensation, "accident" also includes the circumstances defined in the four sub clauses of s.1(1)(a) of the Act.

The meaning of accident is satisfied when it can be shown that a worker's employment has contributed to personal injury, occupational disease, or death. (Source: Policy 02-01)

Adult Interdependent Partner
An adult interdependent partner as defined in the Adult Interdependent Partnerships Act

Agent
A person who is engaged to act on behalf of another.(Source: Dictionary of Insurance)

Aggravation
An aggravation is the clinical effect of a compensable accident on a pre-existing condition, resulting in temporary or permanent clinical impairment and/or loss of earning capacity.(Source: Policy 03-02)

Amalgamation
The joining of two or more corporations into a single corporation.(Source: Alberta Corporate Registry)

Appeals Commission
The Appeals Commission, comprising the Chairman and Chief Appeals Commissioner, Appeals Commissioners, and Temporary Appeals Commissioners.(Source: s.10 of the Act)

Arms Length Relationship
An arms-length relationship is one between unrelated persons each acting in their own self-interest. A related person includes but is not limited to those:

• defined in s.134 of the Act, and
• legal entities under the de facto control of the same person or persons.

It is a question of fact in each case whether persons are dealing with each other at arms length at a particular time. (Source: Policy 07-01)

Association
A collection or organization of persons who have joined together for a certain or common object. (Source: Black's Law Dictionary, Fifth Edition)

Authority
A body given powers by statute to oversee or carry out a government function, for example, an Ambulance Authority. (Source: Canadian Law Dictionary)

Bankruptcy
A state of insolvency where the financial affairs of the bankrupt are handled by a trustee appointed under the Bankruptcy and Insolvency Act. (Source: Bankruptcy and Insolvency Act)

Board
An official or representative body organized to perform a trust or to execute official or representative functions or having the management of a public office or department exercising administrative or governmental functions, for example, the Workers' Compensation Board. (Source: Black's Law Dictionary, Fifth Edition)

Business
The business of an employer consists of all activities common to the provision, or production, and sale of related goods and services. This includes management, administration, marketing and other functions, which are supportive of, incidental, or integral to the employer's main business activities. The WCB also considers activities that are contracted out when determining the industry classification assigned to an employer's business. (Source: Policy 07-01)

Certificate Of Clearance
Written confirmation that the account of a contractor/ subcontractor, the vendor of a business or the vendor of lumber is in good standing to the date the certificate is issued. (Source: Policy 06-03)

Clinical
Related to or based on observation or treatment of a patient. (Source: Dorland's Illustrated Medical Dictionary, 24th Edition)

Clinical Impairment
The loss of, loss of use of, or derangement of any body part, system or function. The presence and extent of impairment is determined by medical (clinical) means. (Source: Alberta Permanent Clinical Impairment Guide)

Commission
A board or committee officially appointed and empowered to perform certain acts or exercise certain jurisdiction of a public nature or relation, for example, the Liquor & Gaming Commission. (Source: Black's Law Dictionary, Fifth Edition)

Compensable
Entitling an individual to compensation.  Example:  a compensable job-related injury.  (Source:  Miriam-Webster's Dictionary of Law 1996)

Compensable Work Restrictions
Compensable work restrictions are based on an assessment of medical conditions (physical and/or psychological) which resulted from the work-related injury. Work restrictions impair a worker's ability to perform pre-accident work duties or to adapt to some other employment. For example, the worker's compensable condition prevents a return to pre-accident or comparable employment, or the worker suffers from a disabling or potentially disabling occupational disease and continued exposure would be harmful. The WCB identifies work restrictions, based on medical and vocational information about the worker. The restrictions may be temporary or permanent. (Source: Policy 04-05)

Competitive Sports
Competitive sports include all sports played against another person or team (such as tennis, basketball, etc.) at any time, and individual sports (such as weightlifting, aerobics, etc.) when the worker is participating in a competitive event. (Source: Policy 02-01)

Contractor
A person who contracts to do work for another. A contractor contracts directly with the principal. A subcontractor contracts with contractors. (Source: Policy 06-01)

Corporation
A corporation is:

• a separate legal entity created by the act of incorporation under the Alberta Business Corporations Act, the Canada Business Corporations Act, or some other statute
• capable of making contracts in its own right and performing all the acts necessary for the operation of the business, and
• commonly called a limited company.

When a corporation is struck from the Corporate Registry it ceases to exist as a corporation relative to the legislation under which it is registered. That corporation ceases to be an employer under the Act.(Source: Policy 06-01)

Cost-effective Return-to-work Services
The WCB will consult with the worker to jointly develop an appropriate and cost-effective return-to-work plan that is consistent with the worker's abilities, skills, and potential. The return-to-work plan is considered appropriate if the worker has a reasonable probability of successfully achieving the vocational goal.

In most cases, the WCB determines cost-effectiveness by comparing:

a) the total estimated costs of required vocational services

b) the remaining compensation benefits that the worker is entitled to

c) the estimated cost of alternative return-to-work plans, and

d) the estimated benefit costs if no return-to-work services are provided.

For workers with severe disabilities, other rehabilitation factors may be more important than vocational cost-effectiveness. Refer to Policy 04-07, Services for Workers with Severe Injuries. (Source: Policy 04-05)

Deemed Workers
Individuals considered to be workers under s.16(1) of the Act, or a direction or an Order of the WCB.[Source: s.1(1)(z)(iii) and s.16 of the Act]

Directors
The directors of a corporation are persons typically appointed by the shareholders to manage the business and affairs of the corporation. Their names are normally recorded both in the corporation's minute book and with the Corporate Registry. (Source: Policy 06-01)

Emergency Service Workers
Emergency Service Workers are persons who:

• volunteer and are registered for emergency services work, or

have been directed to carry out emergency services work by a local representative of the municipal government (e.g., fire, tornado, flood).(Source: Federal Provincial Agreement Providing for Sharing the Cost of Compensation in respect of the Injury or Death of Emergency Service Workers)

Exempt Industry
Any industry listed in of the General Regulations, except when performed as part of an industry to which the Act applies. An industry not listed in Schedule A is considered compulsory.[Source: s.14(1) of the Act]

Foundation
A corporation established to receive, hold, administer, and apply any property or the income from it for purposes or objects in connection with a hospital, other public, or charitable cause. e.g., the Alberta Law Foundation.(Source: Canadian Law Dictionary)

Gainful Employment
When a worker is killed in a work-related accident, a dependent spouse's eligibility for benefits depends in part on his or her ability to achieve gainful employment.

"Gainful employment" is a proportion of the deceased worker's full pension. To be considered gainfully employed, the dependent spouse must have net employment earnings that equal or exceed:

a) 75% of the worker's full pension, or

b) the minimum pension for permanent total disability (see Appendix F)

whichever is more.

The dependent spouse's net employment earnings are calculated in accordance with the Act and regulations.(Source: s.70 of the Act and Policy 04-08)

Guaranteed Coverage Amount
The Guaranteed Coverage amount is an amount that the WCB deems as representative of a Personal Coverage applicant's annual gross earnings. The amount may be different for different industries.

The Guaranteed Coverage amount is based on the WCB's determination of the annual gross earnings of similarly employed workers. The WCB uses earnings information from external wage sources and its own records to determine average earnings in an industry.

If the WCB has not set a Guaranteed Coverage amount for an industry, the minimum personal coverage amount is the Guaranteed Coverage amount for that industry. This may happen when, for example, average earnings in a particular industry do not differ significantly from the minimum personal coverage amount. It may also happen if there are wide fluctuations in earnings or insufficient data to determine a representative amount.

Guaranteed Coverage amounts are reviewed annually by the WCB and reported to the Board of Directors.[Source: s.5(2)(c)(ii) of the General Regulations and Policy 06-02]

Guardian
The term "guardian" refers to a person lawfully invested with the power, and charged with the duty, of taking care of another person and managing the property rights of that other person, who, because of age, understanding, or self-control, is considered incapable of administering his or her own affairs. When used in the context of fatality benefits (see Policy 04-08), the term refers to a person who legally has the care and management of the person, the estate, or both, of a child during its minority.(Source: Black's Law Dictionary, 5th Edition)

Industry Classification
Industry classifications are established by the WCB to group employers involved in the same kind of business. This generally groups employers with similar loss expectations. For each industry classification, the WCB maintains statistics on insurable earnings and claim costs to provide information for setting premium rates. (Source: Policy 07-01)

Insurable Earnings
The gross earnings of each worker up to the annual maximum insurable amount specified by the Board of Directors see Appendix F). Insurable earnings include, but are not limited to:

• wages, salaries and commissions
• labour portion of contract earnings
• bonuses, holiday pay and taxable benefits
• recorded tips and gratuities
• pay in lieu of notice
• value of service
• earnings paid to workers participating in the WCB's Vocational Rehabilitation Training on the Job Program
• any other remuneration or allowance the WCB determines is insurable. (Source: Policy 06-03)

Relationship of Interdependence
“relationship of interdependence” means a relationship outside marriage in which any 2 persons

(i)  share one another’s lives,
(ii) are emotionally committed to one another, and
(iii) function as an economic and domestic unit.

In determining whether 2 persons function as an economic and domestic unit, all the circumstances of the relationship must be taken into account, including such of the following matters as may be relevant:

(a) whether or not the persons have a conjugal relationship;
(b) the degree of exclusivity of the relationship;
(c) the conduct and habits of the persons in respect of household activities   and living arrangements;
(d) the degree to which the persons hold themselves out to others as an economic and domestic unit;
(e) the degree to which the persons formalize their legal obligations, intentions and responsibilities toward one another;
(f) the extent to which direct and indirect contributions have been made by either person to the other or to their mutual well-being;
(g) the degree of financial dependence or interdependence and any arrangements for financial support between the persons;
(h) the care and support of children;
(i) the ownership, use and acquisition of property.

[Source: Policy 04-08 and sections 1(1)(f) and 1(2) of the Adult Interdependent Relationships Act]

The Interjurisdictional Agreement on Workers' Compensation
An agreement between the Canadian Workers' Compensation authorities that is intended to avoid duplicate payment of premiums and to aid injured workers in claiming and receiving compensation when two or more jurisdictions are involved.

This is more commonly referred to as the Interjurisdictional Agreement. (Source: Policy 06-01)

Job Club
A job club is a program that uses instructional techniques in a supportive group setting. The program is designed to target suitable employment opportunities and help the worker gain the necessary job search skills to achieve employment in the shortest possible period of time. (Source: Facilitator's Manual for the Job Finding Club, Human Resources Canada)

Learner
A person who, although not under a contract of service or apprenticeship, becomes subject to the hazards of an industry to which the Act applies for the purpose of undergoing testing, training, or probationary work preliminary to employment in an industry to which the Act applies. [Source: s. 1(1)(o) of the Act]

Legal Entity
Any individual, proprietorship, partnership, corporation, association, or other organization that has, in the eyes of the law, the capacity to make a contract or an agreement and the abilities to assume an obligation and to discharge an indebtedness. A legal entity is a responsible being in the eyes of the law and can be sued for damages if the performance of a contract or agreement is not met. (Source: Dictionary of Business and Management)

Liquidation
The settling of financial affairs of a business or individual, usually by liquidating (turning to cash) all assets for distribution to creditors, heirs, etc. (Source: Black's Law Dictionary, Fifth Edition)

Maximum Insurable Earnings
Maximum Insurable Earnings refers to the maximum gross annual earnings prescribed by order of the Board of Directors under Section 56(4) of the Act. The WCB does not levy premiums or pay benefits on the portion of workers' earnings, which exceed the maximum amount. [Source: s.56(4) of the Act]

Measurable Permanent Clinical Impairment
A permanent clinical impairment is determined by a physician, and is expressed as a percentage of total impairment. It is considered measurable if it is equal to or greater than 0.4%, based on the approved WCB rating schedule. (Source: Policy 04-04)

Medical Plateau
The medical plateau is normally reached when the worker's medical condition has stabilized, further significant medical improvement is unlikely, and permanent work restrictions can be confirmed.

NOTE: In cases of permanent clinical impairment, the medical plateau and medical assessment for permanent clinical impairment need not occur at the same time. Depending on the nature of the injury, the WCB may recommend an additional period of time for minor changes to occur before assessing the permanent clinical impairment. (Source: Policy 04-04)

New evidence
New evidence is new information that may affect the outcome of a workers’ compensation decision. It must meet two basic criteria:

1. the evidence is material (relevant) to the issue in question
2. the evidence is substantive – it gives new information that was not previously available to the decision maker and could affect the outcome of the decision

Information is not new evidence when it simply summarizes or reformats information that was considered by the decision maker when the decision was made. For example, a medical report is not new evidence if it consists of the same clinical findings, by the same or another physician, already taken into account by the decision maker. A medical report may be new evidence if, for example, new clinical findings lead to a change in diagnosis.

Non-Permanent Worker
A worker whose position is subject to lay-offs or shutdowns due to lack of work or seasonal factors, or whose position is such that the agreed term of employment is less than 12 months' duration. (Source: Worker's Report of Injury or Occupational Disease, WCB form C-060 Rev Feb. 96)

Partnership
The relationship that subsists between persons carrying on business in common with a view to profit. (Source: Partnership Act)

Permanent Disability
A worker is considered to have a permanent disability when a work injury results in a permanent measurable clinical impairment or a permanent impairment of earning capacity due to compensable work restrictions, or both. (Source: Policy 04-04)

Permanent Impairment of Earning Capacity
The WCB determines a permanent impairment of earning capacity by assessing the impact permanent compensable work restrictions will have on the worker's ability to earn. (Source: Policy 04-04)

Personal Coverage
Personal coverage is optional WCB coverage for employers, partners in a partnership, proprietors, and directors of a corporation, as set out in the Act and General Regulations. (Source: s.15 and s.16 of the Act and General Regulations 4 and 5)

Physician
"Physician" means a person licensed to practice any of the healing arts in Alberta.  (Source:  s.1(1)(v) of the Act)

Preexisting Condition
A preexisting condition is any pathological condition which, based on a confirmed diagnosis or medical judgement, pre-dated a work-related injury.
(Source: Policy 03-02)

Premiums
The amounts paid to the WCB for worker's coverage, optional personal coverage, and related charges. Also referred to as Assessments. (Source: s.100 of the Act; Policy 06-03)

Premium Rates
Premium rates are set for each industry classification and reflect the loss experience of the respective rate groups. They are set annually, in an amount sufficient to meet the WCB's funding requirements as set out in the Act and Funding Policy (Policy 01-01). Premium rates are expressed as a rate per $100 of insurable earnings. (Source: Policy 07-01)

Principal
A person or a business entity that hires a contractor or subcontractor to perform work or services. (Source: Policy 06-01)

Proprietor
Individuals are considered proprietors under the Act when they

• own and operate a business,
• generally perform work for more than 1 person concurrently, and
• do not employ any workers.

Proprietors are considered to be workers of their principal unless they have an application for personal coverage approved by the WCB.

The WCB may pass an order to consider any other individual or class of individuals to be proprietors.[Source: s.1(1)(w) of the Act]

Receivership
Legal or equitable proceeding in which a receiver is appointed for an insolvent corporation, partnership or individual. (Source: Black's Law Dictionary, Fifth Edition)

Secured Creditor
A person holding a mortgage, hypothec, pledge, charge, lien or privilege on or against the property of the debtor or any part thereof as security for a debt due or accruing due to that person from the debtor.(Source: Canadian Law Dictionary)

Societies
An association or company of person (generally unincorporated) united together by mutual consent, in order to deliberate, determine, and act jointly for some common purpose.(Source: Black's Law Dictionary, Fifth Edition)

Suitable Employment
For the purposes of estimating earning capacity, suitable employment means employment which is consistent with the worker's ability and which is within the worker's locale or may be obtainable where relocation is reasonable. The WCB's assessment of ability will be based on physical, vocational, social, and psychological circumstances and such other factors as the WCB may consider relevant.(Source: Policy 04-04)

Trade Name
The name under which any business is carried on, whether or not it is the name of a corporation, a partnership or an individual.(Source: Canadian Law Dictionary)

Vocational Plateau
Generally, a vocational plateau is reached when the worker has completed the vocational rehabilitation plan and is considered employable.

If the worker is entering an apprenticeship program or other occupation with expected significant earnings in the first few years, the vocational plateau is the point when the worker is employable in the occupation or ready to start the apprenticeship program.(Source: Policy 04-04)