Employers in some industries are covered under Schedule 2 of the Workplace Safety and Insurance Act. Examples include steamship lines, the City of Toronto, Canada Post and Air Canada. Schedule 2 employers pay dollar for dollar the cost of the claims of their workers plus an administrative charge to the WSIB. The administrative charge for provincially regulated employers is 22.2% and for federally regulated employers is 16.1%. Please see: https://www.wsib.ca/en/schedule-2-provisional-administration-rates.
The size of the administrative charge creates different incentives for Schedule 2 employers than for Schedule 1 employers. One option for exploiting these incentives is found in sub-section 63 (1) of the Workplace Safety and Insurance Act. This sub-section allows workers and Schedule 2 employers to make agreements about the amount that the employer will pay to the worker either by way of ongoing payment or lump sum. The agreements are not binding unless approved by the WSIB. For some workers, these agreements can be advantageous. For instance, if a fair lump sum is agreed to and approved by the WSIB, the worker can leave the country prior to the final review date without concerns about the Board reviewing entitlement at that time. There are, of course, issues about deterioration after the agreement, among other things, which workers need to be fully aware of prior to any agreement.