1.0 Reason for Procedures

To set out the Procedures secondary to the Policy entitled "Independent Contractors", in connection with services provided to the University.


2.0 Procedures

2.1 Employee or Independent Contractor

2.1.1 An employment agreement of service to the University and an Independent Contractor agreement to provide services to the University are two distinct contracts. Each arrangement carries with it consequences for the method of payment, deductions required from the payments and additional terms, either as set out in an agreement, or by operation of the law.

2.2 Payments to Employees

2.2.1 Payments to employees are paid as employment income and reported to the Canada Revenue Agency on T4 slips. Statutory deductions are taken at the time of payment as required by legislation (Income Tax Act, Employment Insurance Act, Canada Pension Plan, Manitoba Labour Relations Act for union dues), and for any staff benefits and pension plans where the employee is eligible.

2.3 Payments to Independent Contractors

2.3.1 Payments to Independent Contractors are classified as business income. An independent contractor receiving payment from the University may be an individual, a sole proprietorship, a partnership or a corporation.

2.4 Employment Relationship Characteristics

2.4.1 Generally, the relationship is employment with the University when the following conditions are met:

(a) the University directs and controls how the work will be done and including without limitation:

(i) determines the hours of work;
(ii) determines the quality of the work;
(iii) hires and trains the individual;
(iv) provides pay and benefits to the individual;
(v) the individual reports to the employer for each work day and the next; and
(vi) the individual cannot subcontract the tasks to another employee.

(b) the University owns and provides the tools, equipment, facilities and other resources necessary to do the work;

(c) the individual does not suffer a loss if the project fails, nor does the individual realize a profit if the work or project is successful. Rather the individual typically receives a salary regardless of success or failure of a project or work; and

(d) the work is related to the University’s core business of teaching and research.

2.5 Independent Contractor Characteristics

2.5.1 Generally, the relationship constitutes an independent contractor situation when the following conditions are met:

(a) the individual specifies the work process, and the University only specifies the work outcome;
(b) the individual provides the facilities, equipment and other resources;
(c) the individual runs the risk of loss or profit; and
(d) the work is not related to the University’s core business of teaching and research.

2.5.2 The determination of whether there is an employment relationship instead of an independent contractor relationship shall be made by Human Resources. Units are encouraged to consult with their Human Resource Consultant where there is an area of doubt.

2.6 Independent Contractor Requirements

2.6.1 When someone is an independent contractor, the University requires that either an agreement be signed with or a Purchase Order issued to the individual or entity specifying the desired outcome (instead of setting out the duties or responsibilities). The templates for the agreement and Purchase Order Terms and Conditions are attached in Appendix A.

2.7 Checklist to Determine Method of Payment

2.7.1 Appendix B is a checklist which will assist units in determining the method of payment to be made to individuals or entities providing service to the University.

3.0 Accountability

3.1 University Secretary is responsible for advising the President that a formal review of this Procedure is required.

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

3.3 Human Resources, in consultation with Purchasing Services, are responsible for ensuring compliance with these Procedures.

4.0 Review

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

4.2 In the interim, these Procedures may be revised or rescinded if:

(a) the Vice-President (Administration) or the President deems necessary; or
(b) the relevant Policy is revised or rescinded.

5.0 Effect on Previous Statements

5.1 These Procedures supercede the following:

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

6.0 Cross References

Cross referenced to:

Policy: Independent Contractors
Policy: Employee Organizations and Employment Groups