Document name

Employer Accounts – Clearances

Document number

POL 39/2025

Principal means any person, association or body that hires a contractor. Principals are considered employers.

Contractor or subcontractor means a business or individual hired under a contract for service by another business or individual and can be present in all industries.

Clearance means a letter from the Workers’ Compensation Board (WCB) that authorizes a principal to make payment to a contractor for work completed as of the date of the clearance. A clearance protects the principal from having to pay any overdue premiums the contractor owes.

1. The Workers’ Compensation Act, 2013 (the Act) states a contractor is considered to be a worker of the principal unless they are eligible for and purchase optional personal coverage (Section 131).
2. When a principal has not obtained a clearance from the WCB prior to making payment to a contractor, the Act allows the WCB to hold the principal liable for outstanding premiums owing to the WCB with respect to that work (Section 132).
3. The Workers’ Compensation General Regulations, 1985 (the General Regulations) state the principal must withhold any payment to a contractor until the WCB confirms that the contractor has fulfilled all obligations under the Act.

1. Prior to hiring a contractor, a principal may request a clearance letter to ensure that the contractor has a WCB account in good standing.
2. Prior to a principal releasing any payment to a contractor, a clearance letter must be requested.
3. When a clearance letter is not obtained prior to making payment to a contractor and that contractor has not paid their WCB premiums, the principal will be liable to the WCB for the premiums relating to the labour portion of the contract.
4. When a contractor is not registered with the WCB, they will be considered a worker of the principal and the principal will be responsible for paying premiums on behalf of the contractor.
5. A clearance letter is only valid for the date shown on the letter and only applies to work performed in Saskatchewan.
6. Clearances are not required when:
   1. A business is only supplying goods regardless of whether a delivery charge is included, or
   2. A homeowner, who has not applied for voluntary coverage, hires contractors for the purpose of construction or renovations to their residence.