The primary purpose of a clearance certificate is to shift liability. In Ontario, under the Workplace Safety and Insurance Act , if you hire a contractor who is not in good standing with the WSIB and an accident occurs, could be held liable for their unpaid premiums or the costs associated with a workplace injury. For Principals (The Person Hiring)
You can request a clearance certificate through the WSIB’s online portal or by phone. You will need the contractor’s firm number. You can verify the status of a certificate instantly using the WSIB website.
It ensures you aren't stuck paying the contractor’s WSIB debts.
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