Alternate grants -retraining and self-employment

Before contacting the worker, prepare for the discussion. Review the information they provided about their alternate retraining or self-employment plan. Determine what re-employment (RE) services have been provided, and if a re-employment plan has been identified. If so, calculate the costs associated with that plan, including applicable retraining costs and the cost of any anticipated wage loss supplement. Consider any research that was completed (e.g., academic program costs, worker research form, ALIS occupational profiles or labor market information related to the job option or self-employment).  

When speaking with the worker, discuss the following:

Their current RE plan 

• Whether an RE plan has been identified and, if so, what the worker thinks of that plan.
• If a plan has been identified, the estimated cost of the plan and what those costs include (i.e., retraining costs, allowances, estimated costs of any wage loss supplement).
• If a plan has not been identified, explain the need for the worker to participate in RE services to develop a plan. Explain this plan will be used for comparison purposes to determine the amount of the grant. 

Their alternate retraining or self-employment plan

• The worker's reason for requesting the alternate grant and the benefits of their plan and the desired outcome. Why is the alternate grant a better option for them? 
• What research have they completed so far?
• The purpose of an alternate grant and how estimated costs are calculatedAll WCB payable costs are included in the overall projected cost for the alternate plan. This information is used to compare the cost-effectiveness of the plan. For self-employment plans, this includes any reasonable cost involved in establishing a business such as (but not limited to) purchase costs, franchising fees, inventory, tools, equipment, etc..  
• The financial limits for an alternate grant (i.e., the alternate grant is subject to a maximum based on the estimated costs of the re-employment plan developed with WCB).
• The self-employment or training plan will be compared to the re-employment plan developed with WCB. The probability of success will be considered, as well as the overall costs.
• If the worker wants to pursue a:
  •  Self-employment plan, the BDS provider will provide an opinion on whether the self-employment plan is likely to succeed and can operate based on the amount of the potential grant plus any money the worker has to invest. This will be used to decide whether the self-employment plan is likely to succeed.
  • Retraining plan, the decision maker will review available information about the worker’s previous success in training and may refer them for additional services to assess the likelihood of the worker being successful in the training plan.  

Next steps 

• The worker will need to provide a written request outlining the details of their alternate re-employment plan including the reason for the request, associated costs for the plan such as training or costs for setting up their business, and how the plan will be successful.
  • If the request is for self-employment, provide the worker with the business development plan template to guide them in developing their plan.  Discuss a referral for BDS services to help the worker with developing their plan and to complete a business feasibility studyA business feasibility study is completed by the business development consultant to provide demographic and economic feasibility studies regarding the potential success of a proposed business venture. to confirm the potential for success.  See Business plan (BDS) support services and Business plan feasibility sections below for more information.
  • If the request is for retraining, provide the worker with the Worker's Retraining Research form.
• If there is no current re-employment plan as they have not participated in re-employment services, advise that they will be referred for a triage assessment so a re-employment plan can be developed. 
• Explain that a re-employment provider may be able to assist with researching the training costs if the request is for a retraining program. Explain to the worker that other suitableSuitable work refers to a position that can be performed safely and is consistent with the worker's physical, vocational, social and psychological ability. job options are needed for cost comparison with the alternate re-employment plan being requested.
  • When the worker agrees to participate, refer them for a triage assessment to establish a re-employment plan. If the worker does not agree to participate in the re-employment services explain that further discussion of an alternate grant will be delayed until the worker agrees to participate

Review the alternate re-employment plan details

Before contacting the worker to discuss their alternate re-employment plan, review their written proposal for a training program or their business plan for self-employment. 

Confirm: 

• Does the worker have compensable permanent work restrictionsTo be eligible for alternate program assistance, the worker must have permanent work restrictions that are due to their accepted work injury (i.e., compensable). ?
• Is the information provided complete?

For a self-employment plan, consider whether the physical demands required in the self-employment suit the worker's compensable permanent work restrictions and the potential for a successful outcome. Review the worker's business plan and whether the information supports a viableA viable business plan has a high probability for success.  A viable business plan has a high probability for success.business plan that includes realistic financial projections and anticipated income. The business plan should address each of the areas identified in the WCB Business Plan Preparation form. 

For a retraining plan consider: 

• The estimated total costCosts for retraining may include tuition, books, equipment, fees, retraining allowance, costs for upgrading, wage loss payable during summer breaks, transportation costs, etc. for and length of time needed to complete the academic program.
• If the program requires pre-requisites and if upgrading is required.
• The retraining enables the worker to be employable in a position that is suitable and accessible.
• The likelihood of success.
• If the retraining program will result in new and/or increased transferrable skills.
• Whether the wage loss liability is reduced or eliminated with the alternate re-employment plan.

Discuss with review outcome with the worker

Call the worker to discuss their written request for financial assistance to support their alternate retraining or self-employment plan and the outcome of the review of their proposal. Ask questions to obtain information that was missed in their written proposal or business plan. 

If all necessary information is available, explain that a comparison reviewThe worker's alternate re-employment plan will be compared with the plan that was developed during re-employment services. will be completed to confirm if the plan can be supported. For self-employment, arrangements will be made for an independent review to assist in determining the business plan's viability and potential for success. If the decision is to recommend the alternate grant, approval will be required from the appropriate level of authority (supervisor, manager and/or director).

If all necessary information is not available, discuss any referrals that will be made to a re-employment provider for additional academic research or to BDS for assistance to develop the self-employment plan.

Compare the worker's alternate retraining or self-employment plan to the re-employment plan developed with WCB. Confirm the options identified in the WCB re-employment plan and the alternate re-employment plan are suitable,Suitable work refers to a position that can be performed safely and is consistent with the worker's physical, vocational, social and psychological ability. accessibleA position is accessible when the job exists in the worker's locale/within a reasonable commuting distance/with relocation, the job is open for the public to apply for and the position does not require the worker to work more hours than they worked at DOA. and maximizes the worker's earnings capacity. For a retraining plan, confirm the training will allow the worker to be employable in a position that is suitable and accessible. For a self-employment plan, confirm the physical demands required in the self-employment suit the worker's compensable permanent work restrictions.

Cost comparison

Complete a breakdown of the total costs for each plan. Consider costs for:

• Services and assessmentsThis may include triage assessment, supported job search services, etc. completed to date by the re-employment provider. 
• Total cost associated with the re-employment plan created with WCB including the costs for re-employment assessments, recommended training, additional re-employment services that would be required to complete the plan, supplies and equipment, etc. 
  • For a retraining program, determine the total cost for the plan.  Costs may include tuition, books, supplies/equipment (e.g., computer purchase), retraining allowance and other related expensesOther related expenses could include costs for upgrading, wage loss payable during summer breaks, transportation costs, etc..  
  • For self-employment, d Self-employment costs may include business licenses, permits and related certificates, marketing, and any additional financial costs identified in the business plan.etermine the total cost for the plan. CostsSelf-employment costs may include business licenses, permits and related certificates, marketing, and any additional financial costs identified in the business plan. include those identified in the business plan related to set-up and operation.  Ensure the funding requested by the worker for self-employment is adequate to cover: start-up costs, capital costs, and operating costs up to the time the business is expected to produce adequate income or profit.

Wage loss liability comparison

Compare what the worker's estimated earnings ability will be at the end of each plan to determine if the plan will maximize the worker's earnings capacity and reduce or eliminate the wage loss liability.

Review the following information:

• The ALIS occupational profiles or labor market information for salary information for: 
  • the job option proposed by the re-employment services provider. 
  • the potential jobs based on the job(s) the worker will be able to do upon completion of the proposed retraining program. 
• The self-employment business plan and determine if the business will generate sufficient income to provide the worker with a reasonable net income in comparison the earnings associated with the re-employment plan created with WCB.

Plan strength and success comparison 

Determine the potential for success of each plan. 

For a retraining plan, consider the worker's academic strengths, weaknesses, and their potential for successfully completing the program. Ensure the worker has thoroughly researched the program and understands the level of commitment required.

For a self-employment plan, review the business plan and feasibility reports and identify:

• The forecasted costs to operate the business.
• The estimated general annual cash flow forecast for a period of one to three years with an estimation of the time frame when the business will produce an income profit.
• Associated risks for the plan (e.g., competition from other businesses).
• The business development consultant's opinion regarding viabilityViability refers the business plan's potential for success..

When considering self-employment, ensure the alternate program/plan satisfies the conditions outlined in Policy 04-05, Part II, Application 9 – Self Employment.

After reviewing all the information and completing a comparison review, decide if an alternate grant should be recommended. 

If the alternate grant is appropriate, obtain approval from the supervisor when the cost is above a case manager's level of authority. 

Action any recommendations from the supervisor's review.

If the alternate grant is not appropriate, go to the next step.

Communicate the decision and next steps to the worker verbally and in writing.  

Clearly express the rationale used to reach the decision (citing policy, medical information on the file, any important background information) during the conversation as well as within the letter.

If the alternate grant is approved, agree on a reasonable plan for issuing funds (i.e., issued as a lump sum or as certain benchmarks in the plan are met, etc.).

If the alternate grant is not approved, discuss referring the worker for the remaining re-employment services associated with the re-employment plan developed with WCB. 

Continue managing the claim or transfer to the case assistant for monitoring when no further management is required from the decision maker.