WHEREAS Section 131 and 132 of The Workers’ Compensation Act, 2013 directs that a principal is liable for any outstanding Workers’ Compensation Board (WCB) premiums of their contractors;
WHEREAS WCB has deemed rural municipalities as the principal or general contractor and all businesses that the rural municipalities deal with as sub-contractors;
WHEREAS WCB has the ability to hold the RM liable for premiums by any of the businesses that the RM deals with whether it is a backhoe service or the company delivering fuel to the RM;
BE IT RESOLVED that SARM lobby the Ministry of Labour Relations and Workplace Safety to review The Workers’ Compensation Act, 2013 and limit the Workers’ Compensation Board’s (WCB) ability to use RMs as a collection agency and WCB’s ability to have a perpetual garnishee on all businesses.
Response From The Ministry of Labour Relations and Workplace Safety:
April 22, 2019
I appreciate the frustration rural municipalities experience in collecting and remitting workers' compensation premiums for subcontractors. I believe an option available to the rural municipalities is to request a clearance letter from contractors and subcontractors prior to payment for services rendered. This will ensure that these parties are in good standing with the Workers' Compensation Board.
As you may be aware, amendments to The Workers' Compensation Act, 2013 are currently being consider by the Legislative Assembly. The next scheduled review of the Act and regulations will occur in 2022. I have asked Ministry officials to maintain your proposal for the next review.
Don Morgan, Q.C. - Minister of Labour Relations and Workplace Safety