Saskatchewan Workers' Compensation Board

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The Saskatchewan Workers' Compensation Board administers a provincial compensation system on behalf of workers and employers. This no-fault system protects both parties against medical, lost income and other costs resulting from work injuries. The system is built on co-operative partnerships among workers', employers, other stakeholders and the WCB. One of these partnerships is based on the WCB's Clearance procedures.
What is a Clearance?
 A Clearance is a means of ensuring that premiums are paid to cover workers in a principal/contractor environment.
 A Clearance consists of a letter from the WCB stating that a contracted employer has a WCB account in good standing. This letter authorizes the principal employer to make payments to the contractor for work performed.
Who Needs a Clearance?
1. A principal:
* the owner of a project; or
* the person or firm letting the contract.
2. A subcontractor:
* the person or firm performing the work on a project; or
* the person or firm receiving the contract.
Principal/contractor relationships are most common to construction or renovation type projects.
Why is a Clearance Required?
 Clearances ensure that all employers carry a fair share of WCB assessment premiums.
Clearance procedures help:
* identify new employers;
* provide protection from potential liability to the principal; and
* enable collection of unpaid contractor WCB assessment premiums.
Workers' compensation insurance is different from other forms of insurance in that an injured worker is entitled to benefits regardless of whether the employer has paid its assessment obligation.
 While the WCB cannot exclude employers with bad payment records from the partnership, the use of Clearances helps ensure that employers pay their fair share.
When is a Clearance Required?
 On a project with a stated end date: when any advance, progress or final payment is made.
The WCB requires the following information prior to the final payment:
* name of principal (the person or firm letting the contract);
* name of contractor (the person or firm contracted to do the work);
* year(s) in which the work is being performed;
* description of the project; and
* total contract amount at the end of the contract.
On a continuous contract: every four months.
Responsibility for Clearances
 Under Saskatchewan workers' compensation legislation, the principal owner/contractor are responsible to ensure that the employer premium assessments owed by the contractor to the WCB are paid.
  If the contractor has not paid the required WCB premiums, the principal may be requested to withhold the outstanding premium amount from the contractor's work contract. If the contractor does not have a WCB account, injury claims are charged to the claims experience of the principal.
Clearance Policy
  If settlement is made without first obtaining Clearance, the principal may be responsible for premium payments related to the labour portion of that contract.
  Securing a current Clearance releases the principal from potential liability.
  Through the Clearance procedure, the WCB may release contractor or sub-contractor information to the principal owner or contractor.