Effective date: January 1, 2015
Application: Applies to all principals and contractors.
Policy subject: Employer payroll and premiums
To outline the process for issuing clearances and letters of good standing.
Principal means any person, association or body that hires a contractor. Principals are considered employers.
Contractor or subcontractor means a business or individual hired under a contract for service by another business or individual and can be present in all industries.
Clearance means a letter from the Workers’ Compensation Board (WCB) that authorizes a principal to make payment to a contractor for work completed as of the date of the clearance. A clearance protects the principal from having to pay any overdue premiums the contractor owes.
Letter of good standing means a letter requested before a contract begins which indicates whether a contractor has a WCB account and whether their premiums are paid.
The Workers’ Compensation Act, 2013
Sections 8, 20, 131, 132, 148, 159, 164
The Workers’ Compensation General Regulations, 1985
The Workers’ Compensation Miscellaneous Regulations
(1) February 1, 2021. Definitions updated as per POL 12/2020, Employer Coverage and Registration.
(2) POL 25/95, Clearance, Letters of (effective January 1, 1996 to December 31, 2014).
(3) POL 42/86, Letters of Clearance (effective November 24, 1986 to December 21, 1995).
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