Co-Operative Federalism Reinforced: Workers' Compensation Rules Clarified

Parliament said that it desired a flexible approach to workers' compensation for federal employees across Canada when it passed the Government Employees Compensation Act, R.S.C. 1985, c. G-5 ("GECA"). The Supreme Court of Canada upheld that model of flexibility for workers' compensation systems on March 28, 2014 in Martin v. Workers' Compensation Board of Alberta et al, 2014 SCC 25 ("Martin").

Justice Watson of the Court of Appeal of Alberta (Chief Justice Fraser concurring) provided a succinct synopsis of the Martin case:

Martin, a 33 year park warden, worked for Parks Canada at Banff. He was also a member of the Public Service Alliance of Canada. A prolonged dispute with Parks Canada began in 2000 when he complained that park rangers should be able to carry hand guns and other defensive equipment as a safety requirement under the Canada Labour Code. Martin asserts that, after filing his complaint in 2000, Parks Canada denied him training opportunities, assigned him to less challenging tasks, and generally "prevented him from performing the more pleasurable aspect of the work".

Martin was ultimately found by a workers' compensation board adjudicator to suffer from chronic onset stress. However, in the view of the adjudicator, such stress did not meet the test for an "accident" covered by the Alberta workers' compensation plan. On judicial review, the Court of Queen's Bench set aside the adjudicator's decision and returned the question of coverage to the adjudicator for a determination of whether the stress was covered under the GECA, without regard to the test for coverage under Alberta's workers compensation law and policy.

Prior to Martin, there were two conflicting lines of authority arising out of Canadian appellate courts. Newfoundland and New Brunswick took the view that the GECA established a complete and unified code of eligibility for federal workers' compensation in all provinces. All federal employees have to be treated the same under this theory. On the other hand, Ontario, Nova Scotia and British Columbia concluded that eligibility for compensation under the GECA is determined in accordance with provincial rules, so that all employees in each province, including federal employees, are treated the same.

In Martin, Court of Appeal of Alberta Justice Watson and Chief Justice Fraser (concurring) adopted the Ontario, Nova Scotia and British Columbia approach. A unanimous panel at the Supreme Court of Canada agreed with Chief...