Highlights of Noteworthy Decisions

Decision 342 17
2018-02-12
S. Netten
  • Earnings basis (long-term)
  • Earnings basis (bonus)

The worker suffered a compensable injury in April 2006. She continued to work until the employer was no longer able to employ her in July 2011, due to a plant closure. The Board paid benefits at the short-term rate starting in July 2011. The worker appealed a decision of the Appeals Resolution Officer regarding the earnings basis for long-term benefits starting in October 2011.

The Board based long-term benefits on the worker's earnings in the 12 months preceding the lay-off. However, the Board did not include a $31,000 bonus received by the worker in October 2010.
The payment was referred to as a one-time performance bonus. However, in fact, it was not a performance bonus. Of the $31,000 total, $5,000 was to settle a pension grievance and $26,000 was to reward senior employees on ratification of a new collective agreement.
Board policy provides for inclusion of production bonuses for achieving production quotas in the long-term earnings basis. There is no provision for inclusion of bonuses such as the bonus received by the worker in this case.
The appeal was dismissed.