The present trend of subcontracting is important enough to address the issue in this guide.
In past years, the Parity Committee has conducted many investigations in cases of subcontracting and autonomous workers in order to stop the black market and fight this fraudulent non-declared work.
These investigations brought many penal accusations and important salary claims.
As a contractor, you have the right to have subcontractors to execute the work. However, you must be very careful if you do not want the operation to turn into a nightmare.
You can give a subcontract to a firm which is already in business and who has its own employees. However, you must know that if your subcontractor does not respect the Decree and does not pay the employees correctly, the Act respecting Collective Agreement Decrees (Section 14) stipulates that you will be held responsible for the unpaid salaries. The Parity Committee will send you a claim for the differences in salary that you will have to pay.
It is important to know that even if you hire an independent worker according to the taxation authorities, he may still be considered an employee according to the Decree. According to this double status, this person would be entitled to all the benefits provided by the Decree (hourly rate, vacation pay, legal holidays, sick leave, RRSP, etc.). He should also appear on your payroll and monthly reports.
Attention: The fact of being registered, incorporated or having a tax number does not at all guaranty that a subcontractor will be accepted as such. You must know that in order to be accepted by the Parity Committee as an autonomous worker, the worker must already be in business in a significant manner, meaning that, he must not depend on only one important subcontract or he must have his own employees.
Be cautious! Enquire with the Parity Committee before hiring a subcontractor.
- What is the Decree respecting Building Service Employees?
- What is the Parity Committee?
- What are the obligations of the employer?
- The Act respecting Labour Standards and the Act respecting Collective Agreement Decrees