
Meredith Principles
Sir William Meredith’s 1913 report (discussed in more detail here) outlined core concepts that form the foundation of workers compensation in Canada. These foundational concepts, known as the “Meredith Principles”, are as relevant today as they were when Sir William Meredith first outlined them.
The Meredith Principles represent what is known as the “historic compromise” between workers and employers. In exchange for employers funding 100% of the cost of compensation and agreeing that compensation be payable regardless of fault, workers gave up their right to sue their employer for injury.
There are five basic concepts in Meredith’s report which continue to underlie workers compensation systems in Canada today.
- No-Fault Compensation. Compensation and benefits are payable regardless of how the injury occurred or who is at fault for an injury. A worker can be at fault for an accident and still receive coverage. Employers get full immunity from suit even if they are at fault for the accident.
- Security of Benefits. A fund is established that guarantees funds exist to pay benefits to injured workers.
- Collective Liability. All covered employers share in the cost of the system. Workers do not pay premiums. All employers contribute to a common fund based on different rate groups according to their business. Collective liability ensures that workers receive benefits regardless of an employer’s ability to pay. It also protects employers from costs associated with serious accidents which can be significant.
- Independent Administration. An organization independent of government administers the workers compensation system. In Manitoba, this organization is the Workers Compensation Board (WCB).
- Exclusive Jurisdiction. Only workers compensation organizations provide workers compensation insurance. All compensation claims are directed to the compensation board. The board is the decision-maker and final authority for all claims. The courts’ role is very limited in workers compensation matters.
As workers compensation has evolved during the past century in Manitoba, two additional principles have been recognized to reflect the modern workplace:
- Prevention of Workplace Injuries and Diseases. Many workplace injuries are preventable. Safe workplaces should be the expected norm for all industries and employers in Manitoba.
- Timely and Safe Return to Health and Work. Enabling a worker to return to health and work safely and quickly has become a key goal of compensation boards across Canada. Timely return to work leads to better recovery and reduces the impact of the injury or illness on the worker’s quality of life, while also reducing costs to employers.