Alternative Payment Arrangements



The WSIB may require from an employer security for the payment of amounts that are, or may become, due under the insurance plan.


The WSIB may specify the type and amount of security to be provided, and may vary the type and amount if it considers it appropriate to do so.


The employer shall provide the security within 15 days after being directed to do so.


The WSIB has the powers of a natural person including the power to establish policies concerning the premiums payable by employers under the insurance plan.


The WSIB may consider alternative payment arrangements to an employer's account while a disputed premium amount is under appeal.



"appeal" for the purpose of this policy means a reconsideration of a decision-maker's decision following an employer's objection, an appeal to the Appeals Branch or to the Workplace Safety and Insurance Appeals Tribunal (WSIAT).

In situations where an employer is appealing a WSIB premium issue or is unable to pay, the employer may:

By choosing a LC, the WSIB suspends and, the employer avoids collection activity on the disputed premium amount due.

Appeal Decision

If the employer's appeal is successful, the WSIB adjusts the employer's account accordingly.

  • If the employer posted a LC as security, the LC is released and no credit interest calculation will apply for the LC's posted amount. Also, the WSIB does not reimburse administrative fees incurred by the employer for the original issuance or renewal of the LC.
  • Credit interest will be calculated and paid on premiums (payments received) that became due during the course of the appeal, providing they were paid in full, until the date of the appeal decision.

If the employer's appeal is unsuccessful, the employer is required to pay all outstanding amounts immediately, including any accrued or applied interest charges. The WSIB will cash the LC immediately and pursue any remaining balance due.

For more information on credit and/or debit interest see OPM 14-02-16, Credit Interest on Appeals and 14-02-07, Employer Non-Compliance Interest and Charges.

Letter of credit

The standard form of security considered acceptable by the WSIB is an irrevocable and renewable LC. It must be issued or guaranteed by a bank defined under Schedule 1 or Schedule 2 of the Canadian federal Bank Act and be issued for the duration of one year. The WSIB reserves the right to approve the format, content and issuer of LC.

WSIB Issued Certificates

Clearance certificates may be issued while a disputed premium amount is under appeal and a LC has been provided as security provided the employer complies with all requirements outlined in OPM 14-02-04, Clearance Certificates.

Purchase Certificates will not be issued by the WSIB while a disputed premium amount is under appeal and a LC has been provided as security. For more information, see OPM 14-02-03, Purchase Certificates.

Writ of Seizure and Sale certificates will not be filed by the WSIB where an employer provided a LC for security within 15 days of the request. See OPM 14-04-03, Writs of Seizure and Sale.

Application date

This policy applies to all active appeals in progress on or after April 7, 2008, regardless of whether the appeal was initiated prior to April 7, 2008.

Document History

This document replaces 14-04-05 dated October 12, 2004.


Legislative Authority

Workplace Safety and Insurance Act, 1997,as amended
Sections 137, 159 (2)(a)

Workers' Compensation Act, R.S.O. 1997,as amended
Section 72(1)


#10, March 17, 2008, page 460