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PAGE 1 OF 5
WORKERS'
COMPENSATION BOARD
CONTRACTOR COVERAGE
POLICY
Council Administrative
PURPOSE
The Purpose of this Policy is to ensure the interests of the Municipality of the District of East Hants are protected
when engaging Contractors to perform work on the Municipality's behalf, by requiring the Contractor to have
workplace injury insurance of a type acceptable to East Hants.
SCOPE
This Policy applies to every employee of East Hants when they engage any Contractor (or Consultant) to complete
any work on behalf of East Hants, regardless of the type of work, the value of the work, the expected duration
of the work, or how it will be performed. In requesting services, obtaining a quotation, or in developing a formal
competition, East Hants Staff must include a statement letting the potential Contractors know that we require
WCBNS workplace insurance coverage as a condition of award and a statement that no payment will be made
unless the Contractor is in good standing with WCBNS.
This Policy will also apply to the purchase of goods where the provider will also set up or install the goods on our
behalf.
This Policy applies to any Contractor regardless of their normal status under the Workers' Compensation Act,
Nova Scotia (Act), including providers who may not appear on the list of Mandatory Industries, as well as
proprietors, partners or individuals who may offer to do work for East Hants.
Exemptions:
Only the Chief Administrative Officer (CAO) may approve exemptions under this Policy. The circumstances where
the CAO may consider an exemption are:
-
In a situation where the number of Contractors available to do a type of work is limited and the
requirement to register for WCB coverage would cause all available Contractors severe financial
hardship. In this circumstance a contractual obligation to hold East Hants harmless with respect to
workplace injury claims will be required; or
-
The Contractor is in an Exempt industry and the Contractor will agree to the contractual obligation
to hold East Hants harmless with respect to workplace injury claims; and
-
Where the level of risk assumed by East Hants will be minimal (low cost or low complexity).
East Hants may not award to a Contractor in a competitive situation and then provide an exemption to this Policy;
any exemption must be made available to all potential Contractor's during the competition. If there is likelihood
PAGE 2 OF 5
WORKERS'
COMPENSATION BOARD
CONTRACTOR COVERAGE
POLICY
Council Administrative
that an exemption may become necessary because there are a limited number of contractor's available to do
the work or where the industry is typically exempt, the option to accept an indemnification statement instead
of WCB coverage must be included in the competition document or in an addendum while the competition is
active.
Examples of industries where the CAO has approved an exemption include photographers, writers or artists, and
instructors (when not associated with a Mandatory Industry). Exemptions will be recorded in a list maintained
by the Procurement Officer.
Other Jurisdictions:
Where reciprocal agreements exist between WCBNS and other jurisdictions, the CAO may, at their sole discretion,
accept workplace insurance coverage from another jurisdiction. It will be the responsibility of the Contractor to
provide proof acceptable to East Hants that:
The workplace insurance coverage in the originating jurisdiction is in place, that the originating
jurisdiction is aware that work is taking place outside of their jurisdiction and agree to cover this work,
and that the Contractor remains in good standing with respect to their obligations in the originating
jurisdiction during the course of the work; and
That WCBNS agrees that the extension of coverage or that the reciprocal agreement applies to the
Contractor and that the workplace insurance being provided meets or exceeds their requirements for
WCB.
Private insurance which purports to provide workplace insurance coverage will not be accepted as replacement
for WCBNS coverage.
DEFINITIONS
Term
Definition
Contractor
From the WCB Act: a person or company hired by an employer to do a specific job for a specific
price. Contractor and subcontractor may be used interchangeably
Consultant
Many consultants are considered exempt under the WCB Act. However, East Hants does not
exempt consultants from the requirements of the Policy and therefore the term Contractor will
also be read to mean Consultant.
Clearance Letter
A letter provided by the Workers' Compensation Board of Nova Scotia confirming that the
Contractor is in good standing, until a set date, with WCBNS.
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WORKERS'
COMPENSATION BOARD
CONTRACTOR COVERAGE
POLICY
Council Administrative
Term
Definition
Subcontractor List
An electronic list through the WCB website where typical subcontractors for East Hants may be
listed and the current WCB status may be confirmed.
Exempt Industry
An industry which normally is not required to have WCB coverage due to the nature of the work
they undertake as specified in the WCB Act.
Mandatory Industry
An industry where WCB coverage is required under the WCB Act.
Special Protection coverage
Coverage under WCB provided to proprietors and partners who normally are not required to have
workplace injury insurance. If a company obtains such coverage, they must also provide coverage
to each employee they hire.
Annual Subcontractor Report
A report submitted to the WCBNS
WCB Act
Workers' Compensation Act, Nova Scotia
POLICY
It is the policy of the Municipality of East Hants to require that any Contractor hired by East Hants, regardless of
normal status with respect to the WCB Act, have or obtain coverage through WCBNS prior to starting the job for
which they were hired. The Contractor must remain in Good Standing for the greater of the duration of the work
for which they were hired or the term specified in their contract with East Hants. East Hants will make no
payment to any Contractor if proof of such coverage cannot be provided in a form acceptable to East Hants,
submitted at the time of invoicing.
In the event East Hants contemplates an Exemption and the CAO agrees, the Contractor will be required to
accept a contractual obligation to hold East Hants harmless from any financial consequences should one of their
employees be injured while performing work for East Hants. The language of such a clause is subject to legal
review and may form part of an engagement letter with the Contractor.
ROLES AND RESPONSIBILITIES
Title/Role
Responsibilities
Directors & Supervisors
Ensure the policy is communicated and enforced. Do not authorize any use of Contractors unless proof of
WCB coverage has been obtained and emphasize such coverage must be maintained for the duration of the
work, as well as any additional time identified in contract documents.
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WORKERS'
COMPENSATION BOARD
CONTRACTOR COVERAGE
POLICY
Council Administrative
Title/Role
Responsibilities
Employees
Require or make a requirement of any request for quotation or other form competition (tender or RFP)
that the Contractor must provide a valid Clearance Letter prior to commencing any work. The
requirement must state that such coverage must be maintained for the duration of the work, as well as
any additional time identified in contract documents. The Contractor must be told that no payment will
be made unless they are in good standing with WCBNS. Employees must send any Clearance Letters or
notification of the use of a Contractor to the Procurement Officer before work commences.
Policy Owner
The policy owner (see Version Log) is responsible for reviewing the policy on a yearly basis for relevancy
and potential updates.
Procurement Officer
Maintain the Subcontractor List on the WCBNS website. Print and summary list quarterly for audit
purposes.
Accounts Payable Clerk
Provide to WCBNS the Annual Subcontractor Report containing information about all of the subcontractors
hired throughout the year.
CAO
Approve or Reject Exemptions. Approve or Reject proposed changes to the Policy.
RELATED DOCUMENTATION
Document Name
Document ID
Document Type
Workers' Compensation Act, Nova Scotia
N/A
Legislation
June 22, 2004 Memo from Connie Nolan to Ian Glasgow and Directors
N/A
Background
VERSION LOG
Version
Number
Amendment Description
Amendment/Policy
Editor
Amendment/
Policy Owner
Approver
Approval Date
1.0
Council Policy summarized
for approval as Municipal
Policy
Kim Ramsay
Ian Glasgow
February 14,
2003
1.1
Amending Council Policy to
allow for exemptions
CAO
Connie Nolan
March 30, 2004
2.0
Formalize WCB Policy in
current template and
update for jurisdictions
Procurement Officer
Deputy CAO
Council
November 28,
2018
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WORKERS'
COMPENSATION BOARD
CONTRACTOR COVERAGE
POLICY
Council Administrative
CERTIFICATION
I, Connie Nolan, Municipal Clerk of the Municipality of East Hants, hereby certify that this policy was duly
approved.
_______________________________________
Connie Nolan
Municipal Clerk