Coverage – Trucking, Leased Operators
Effective date: January 1, 2012
Last updated: August 16, 2011
Application: All firms in the trucking industry.
Policy subject: Employer coverage and registration
To establish coverage guidelines for leased operators in the trucking industry.
Leased operator means a business or person that owns a truck and provides transportation services under contract to another business or person.
- Under Section 8(2) and 8(3) of The Workers’ Compensation Act, 2013 (the “Act”), the owner of equipment, who has not been assessed as an employer and enters into a contract with a principal, is deemed a worker in the employ of the principal. Any individual hired by the owner to operate the equipment is considered a worker of the principal.
- In accordance with Section 8(4), when a principal is required to pay premiums for the equipment owner, the principal may deduct from the owner the sum equivalent to the premiums assessed by the Workers’ Compensation Board (WCB).
- Section 18 of The Workers’ Compensation General Regulations, 1985 (the “General Regulations”) defines the holder of the Operating Authority Certificate issued pursuant to The Motor Carrier Act as an employer within the commercial transportation industry. Under The Motor Carrier Act, leased operators were not eligible for an Operating Authority Certificate and therefore were not eligible for an account, regardless of whether they hired workers.
- Deregulation of the trucking industry occurred in 1998 and The Motor Carrier Act was repealed in 2006. The Traffic Safety Act, which replaced The Motor Carrier Act, does not require an Operating Authority Certificate for the transportation of goods. Consequently, Section 18 of the General Regulations is no longer relevant in defining who is an employer within the trucking industry.
- Where a leased operator employs workers on a full-time, part-time, casual, or contract basis, they are required to register for an account with the WCB.
- If the leased operator does not hire workers, they are considered a worker of the principal unless they are eligible for coverage as an independent worker and have purchased personal coverage.
- Where a leased operator is not required to register and has not purchased personal coverage, they are considered a worker of the principal they have contracted with. The principal may deduct or recover from the leased operator the sum equivalent to the premiums paid based on the firm’s net premium rate for the work being completed.
Act Sec #
Act Sec #
01 January 2014. References updated in accordance with The Workers’ Compensation Act, 2013
POL 15/2000 Coverage – Independent Worker
POL 07/2004 Assessable Labour Portion of Contracts
PRO 07/2004 Assessable Labour Portion of Contracts
POL 02/2011 Coverage – Contracts Involving Equipment
PRO 02/2011 Coverage – Contracts Involving Equipment
POL 24/2010 Assessable Earnings
POL 24/2014 Alternative Assessment Procedure for the Interjurisdictional Trucking Industry
PRO 24/2014 Alternative Assessment Procedure for the Interjurisdictional Trucking Industry
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