CapitalCare Collective Agreement 2020-2024

Article 49: Subrogation

1. Sick leave is provided by the Employer for the purpose of insuring the maintenance of regular earnings, during absences due to illness or accidents for which compensation is not payable under the Workers’ Compensation Act or for quarantine by the Medical Officer of Health.
2. Sick leave provisions, as they provide compensation to Employees for actual lost wages during the course of their illness or non-occupational injury, constitute a contract of indemnity and are therefore subject to the Employer’s right of reimbursement of sick leave earnings should the utilization of those earnings be as a result of the negligence of a third party.
3. Based on the legal principle that the negligence of a third party causing an illness or accident (example:  car accident) has caused the Employer harm, due to the loss of services of the injured or ill Employee and the cost of sick leave/vacation benefits, the Employer is entitled to claim against the responsible party for it’s loss.  It is in the Employee’s best interests to include the Employer in any lawsuit against the negligent third party as their sick/vacation banks will be reinstated proportionate to the amount of sick leave/vacation costs recovered.
4. If an Employee is involved in a motor vehicle accident or becomes ill as a result of the negligence of a third party and they are legally represented, they have the right to apply for subrogation. Subrogation is a process which provides the Employer with the opportunity to recover all or part of the sick leave and/or vacation benefits paid to the Employee during their absence.
5. Upon payment of the net reimbursement amount, and subject to the terms and conditions of CapitalCare’s Reimbursement Agreement the Employer will reinstate the Employee’s sick bank proportionate to the extent of reimbursement received.