Bill 119, Workplace Safety and Insurance Amendment Act, WSIB

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With January 1, 2013 fast approaching, it is important for ?independent operators, sole proprietors, executive officers and partners in a partnership working in construction to understand their obligations under Bill 119, Workplace Safety and Insurance Amendment Act, 2008 (?Act?).?

The Act, which was introduced in 2008 and scheduled to come into effect not earlier than January 1, 2012, makes it mandatory for all independent operators, sole proprietors, certain business partners and executive officers carrying on business in construction to have WSIB coverage, which prior to the Act was optional. Under the Act, an independent operator is defined as a person who carries on an industry under Schedule 1 or Schedule 2 but does not employ any workers for that purpose.

Subsequent to its introduction, the Ontario Government decided to dedicate 2012 to a year-long ?education campaign?. The provisions of the Act will come into effect by January 1, 2013.

Under the Act, if you directly hire someone who is required to carry mandatory WSIB coverage, you will be required to ensure that they comply with their obligations under the Act. Otherwise, you may be required to pay the premiums that are payable to the WSIB by them and will be liable to the extent that they do not meet their obligations under the Act.

Furthermore, if you directly hire a contractor or a subcontractor, you must ensure that a clearance certificate is obtained from the WSIB prior to the contractor or subcontractor performing any work. If a clearance certificate has expired or has been revoked during their work, the contractor is responsible for obtaining a valid clearance certificate prior to the completion of their work. There is also a requirement that clearance certificates be kept for three years so that they can be produced during an inspection.

Independent operators and partners in the construction industry who have no employees will also be required to register with the WSIB and obtain a clearance certificate.

There are of course a number of exceptions to the mandatory coverage under the Act, namely home renovators and partners or executive officers who apply for an exemption and who can establish that they do not do any construction work on any building sites with the caveat that construction businesses can only select one partner or executive officer to apply for the exemption.

The price of not complying with the provisions of the Act can be quite high. Individual violators may be fined up to $25,000 and/or imprisoned for six months. Corporations may be fined up to $100,000.

It is essential for those affected by the Act to fully understand their obligations under the Act prior to its coming into force on January 1, 2013. It is still not too late to start thinking about the implications of this Act and how you can go about minimizing your exposure to liability.?

For more information about Bill 119 click here.

Source: http://harrisonpensa.com/attention-construction-business-obligations-bill-119/?utm_source=rss&utm_medium=rss&utm_campaign=attention-construction-business-obligations-bill-119

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