Document name
Coverage – Contracts Involving Equipment
Document number
POL 02/2011

Effective date: February 1, 2011

Last updated: January 19, 2011

Application: Principals and contractors of equipment

Policy subject: Employer coverage and registration

Purpose:

To establish coverage when an equipment owner enters into a contract requiring equipment.

DEFINITION

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Section detail

Equipment, as referenced in Section 8 of The Workers’ Compensation Act, 2013 (the “Act”), means major, industrial-grade equipment that is used to fulfil the terms of a contract for which the owner of the equipment is being paid. The owner of the equipment generates revenue from entering into contracts that require the use of equipment. Light- or home-use grade items such as hand tools, lawnmowers, snowblowers, and personal transportation vehicles are not considered equipment.

BACKGROUND

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  1. Under Section 8(2) and 8(3) of the Act, the owner of equipment, who has not been assessed as an employer and enters into a contract with a principal, is deemed a worker in the employ of the principal. Any individuals hired by the owner to operate the equipment are considered a worker of the principal.
  2. Under Section 8(4) of the Act, when a principal is required to pay premiums for the equipment owner, the principal may deduct from the owner the sum equivalent to the premiums assessed by Workers’ Compensation Board (WCB).

POLICY

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  1. When a principal contracts with an owner of equipment who is not registered with WCB, the owner is considered a worker of the principal. Any individual the owner may hire to operate the equipment and fulfil the contract is also considered a worker of the principal.
  2. When the owner and/or operator is considered a worker of the principal, the principal may deduct or recover from the equipment owner the sum equivalent to the premiums paid based on the firm’s net premium rate for the work being completed.
  3. Those considered workers of the principal will be provided with coverage under the Act from the start of the contract until twelve midnight of the tenth calendar day following completion of the contract or the effective date of a new contract if earlier. Coverage will be provided for directly-related activities including equipment servicing and will be in effect to include travel to and from the contracted worksite, provided the worker proceeds by the most practical route.
  4. The principal’s premium will be based on the labour portion of the contract.

Policy references

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Section heading

Act Sec #

Page/document title
3, 8, 20

Section heading

Amended

Section detail

01 January 2014. References updated in accordance with The Workers’ Compensation Act, 2013

Section heading

Supersedes

Page/document title
POL 01/87 Coverage, Owner-Operators

Section heading

Complements

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