Understanding WSIAT Decision No. 773/22: Full Loss of Earnings Benefits After Refusing Unsuitable Work

🔍 Legal Insight: Termination Following an Unsuitable Job Offer Does Not Bar Entitlement to Full LOE Benefits

A central and frequently misunderstood issue in WSIB claims is whether an injured worker remains entitled to Loss of Earnings (LOE) benefits after being terminated by their employer, especially when the termination follows a refusal of modified work.

In WSIAT Decision No. 773/22 dated July 29, 2025, the Panel confirmed a critical legal principle that has wide-reaching implications for injured workers:

Termination of employment that arises from a refusal to perform unsuitable modified work does not disqualify a worker from receiving full LOE benefits.

⚖️ Context of the Case

In this matter, the worker was offered a modified position as a surface cleaner, which was determined, through extensive contemporeneous and unsolicited medical and functional evidence, to be unsuitable given the worker’s physical, cognitive, and psychological restrictions.

When the worker declined the position, citing its incompatibility with his documented impairments, the employer proceeded to terminate his employment.

The WSIB subsequently ceased LOE payments, taking the position that the worker had failed to cooperate with return-to-work efforts.

✅ WSIAT’s Finding on Post-Termination Entitlement

The Workplace Safety and Insurance Appeals Tribunal found that:

• The modified job was not suitable, based on the cumulative impact of the worker’s impairments.

• The worker acted reasonably in declining to participate in the return-to-work plan.

• The termination was not a severing event, nor did it amount to misconduct or a refusal without cause.

As such, the worker was entitled to full LOE benefits from the date of the job offer (January 4, 2021) and continuing after termination (December 10, 2021), subject to statutory review.

📌 Practical Implications

This decision reinforces the following:

• Unsuitable modified work, even when offered in good faith, cannot justify the suspension or denial of LOE benefits if the worker's refusal is medically supported.

• Termination for not attending such work does not break entitlement, provided the worker continues to experience a loss of earnings that is significantly linked to the compensable injury and/or injuries.

• Employers and adjudicators must consider the totality of a worker’s functional limitations, including psychological and cognitive impairments, not just physical capacity, when evaluating job suitability.

🔎 Conclusion

Bruce Zevallos, through detailed advocacy and evidence-based argumentation, secured a precedent-reinforcing result that reaffirms an injured worker’s right to fair compensation, even in the face of termination.

This case underscores that entitlement to LOE benefits depends on the medical and legal realities of impairment and work capacity, not merely on the employer’s administrative response to a job refusal.

💼 Need Advice on WSIB Terminations and LOE Denials?

If you have been:

• Terminated after refusing a modified job

• Denied LOE benefits

• Told that your refusal of modified duties disqualifies you

We can help.

RCR Legal Services Professional Corporation specializes in WSIB and WSIAT advocacy for injured workers across Ontario. We ensure that your rights are protected and your impairments are accurately represented.

📞 Contact us today at (416) 222-2213 for a confidential consultation.