WSIB Phasing Out the Second Injury and Enhancement Fund:
What Employers Need to Know
Overview
The Workplace Safety and Insurance Board (WSIB) has announced that it is phasing out the Second Injury and Enhancement Fund (SIEF), a longstanding cost-relief program available to Schedule 1 employers.
SIEF was established to provide employers with relief from certain claim costs where a worker had a pre-existing condition that caused, contributed to, or prolonged a work-related disability. Depending on the circumstances, SIEF could transfer a portion of the claim costs that would otherwise be attributed to the employer’s experience-rating.
The WSIB’s decision to phase out SIEF follows a value-for-money audit of the program. As part of the wind-down, there are two (2) revised WSIB Operational Policy Manual Documents:
- 14-05-03, Second Injury and Enhancement Fund (SIEF), and
- 14-05-04, SIEF Application to NEL, FEL and LOE Benefits.
Clarification of the Effective Date
Although the revised policies are effective as of June 16, 2026, the WSIB will accept new SIEF requests received before July 16, 2026, to align the transition with the public release of the SIEF value-for-money audit.
The WSIB further clarified that requests received before July 16, 2026 will be reviewed and adjudicated under the SIEF wind-down provisions in Policies 14-05-03 and 14-05-04.
Summary:
- New SIEF requests received before July 16, 2026, will be accepted and considered under the wind-down provisions.
- The revised SIEF policies otherwise remain effective as of June 16, 2026.
- SIEF relief that was already granted will continue to apply in accordance with the applicable policy and claim circumstances.
The phase-out of SIEF does not affect an injured worker’s entitlement to benefits, health-care treatment or the adjudication of their underlying workplace injury claim.
What This Means for Employers
With SIEF ending, employers can no longer rely on the program as an mechanism for some cost relief from qualifying claims. Employers may wish to focus on:
- Participation in the WSIB Health and Safety Excellence Program
- Careful review of entitlement decisions, including possible application of Pre-existing Conditions policy (15-02-03) and Aggravation Basis policy (15-02-04)
- Proactive claims management including early intervention and effective return to work efforts
Employers should also ensure that they understand the status of any SIEF requests previously submitted and how existing SIEF relief, where already granted, will continue to be reflected in their claims and premium experience.
Questions About How the SIEF Changes Affect Your Organization?
The Office of the Employer Adviser (OEA) provides free and confidential advice, assistance and representation to eligible Ontario employers.
Employers with questions about the SIEF phase-out, an existing or previously submitted SIEF request, or how the changes may affect a particular claim, are encouraged to contact the OEA for assistance.
Please contact the OEA if you have questions about the information in this handout or anything related to your WSIB claims or costs, or OHSA s. 50 unlawful reprisal claims. We are independent of the WSIB and the OLRB, our legal services are available at no additional cost to you, and all conversations are confidential.
Call us at: (416) 327-0020 / 1-800-387-0774 or
Email us at: askoea@ontario.ca