1.0 Reason for Policy

1.1 To define the circumstances in which a service provider is considered to be either in an employment situation; or a contract for service as an independent contractor. Among other things the determination will affect method of payment issues including compliance with the Income Tax Act (Canada), statutory deductions for Canada Pension Plan and Employment Insurance, eligibility for staff benefits and pension plan participation, inclusion within a bargaining unit and terms and conditions of employment.

1.2 The purpose of this Policy is to assist University staff to determine the correct terms of engagement made with individuals or business entities that provide services to the University.

2.0 Policy Statement

2.1 The University will comply with all relevant legislation in determining whether the service provider is considered to be either an employee or an independent contractor.

2.2 The federal government is entitled to conduct an audit of the University's records around payment to individuals or entities for services. Where such an audit concluded that certain relationships were employment, as opposed to independent contractor, the University may then be required to pay all statutory deducations (i.e. Income Tax, Canada Pension Plan and Employment Insurance). It may also be the case that the University would be subject to penalties. Accordingly, the final responsibility for the determination of an individual's status, either employment or independent contractor, will be made by Human Resources.

2.3 The University has eight (8) bargaining units and all employment situations must be reviewed by Human Resources to determine membership in any of these bargaining units. If an audit should determine that certain relationships were employment, as opposed to independent contractor, the University may then be required to comply with the terms of the appropriate collective agreement.

2.4 The Purchasing Department will receive requests for approval of independent contractor situations utilizing standard criteria and guidelines provided by Human Resources. In situations where the determination is not clear, Human Resources will be asked to make a ruling on the nature of the relationship.

3.0 Accountability

3.1 The University Secretary is responsible for advising the President that a formal review of this Policy and Secondary Documents are required.

3.2 The Comptroller and the Executive Director of Human Resources are jointly responsible for the communication, administration and interpretation of this policy.

4.0 Secondary Documents

4.1 The Vice-President (Administration) or the President may approve Procedures which are secondary to and comply with this Policy.

5.0 Review

5.1 Formal Policy reviews will be conducted every ten (10) years. The next scheduled review date for this Policy is August 28, 2018.

5.2 In the interim, this Policy may be revised or rescinded if the Board of Governors deems necessary.

5.3 If this Policy is revised or rescinded, all Secondary Documents will be reviewed as soon as reasonable possible in order to ensure that they:

(a) comply with the revised Policy; or
(b) are in turn rescinded.

6.0 Effect of Previous Statements

6.1 This Policy supercedes:

(a) all previous Board/Senate Policies, Procedures, and resolutions on the subject matter herein; and
(b) all previous Administration Policies, Procedures, and directives on the subject matter contained herein.

7.0 Cross References

Cross referenced to:

Procedure: Independent Contractors
Policy: Employee Organizations and Employment Groups
Procedure: Employee Organizations and Employment Groups