Bill 119 requires businesses that hire contractors for renovations to obtain clearance certificates from those contractors, proving they are registered with and paying premiums to the Workplace Safety and Insurance Board (WSIB). The business is responsible for ensuring any contractors and subcontractors they hire have valid clearance certificates. Failure to do so could result in the business being liable for any unpaid WSIB premiums if a worker is injured. Clearance certificates are valid for only 90 days, so businesses must monitor contractors' compliance. Penalties for non-compliance include fines up to $25,000 for individuals and $100,000 for corporations.

1. Kathryn Kissinger HR Services 2013
Bill 119 & Business Renovations

2. Bill 119 & Business Renos
Here’s another example of the government passing a
law, and making the average Business Owner
responsible to enforce it.
Haven’t heard of Bill 119 yet? Unless you are a
Construction Contractor, you likely haven’t.
This Bill requires all contractors who perform
commercial renovations to register with and
participate in WSIB premium payments.
Kathryn Kissinger HR Services 2013

3. Why is this bill important to other types
of businesses?
Bill 119 applies to renovations to or the building
of premises that are used for your business
purposes.
This Bill requires the “principle” (that is, the person
or company/organization that actually pays for
the work being done) to ensure the Contractor
being hired is compliant with WSIB.
Kathryn Kissinger HR Services 2013

4. Requirement for Clearance Certificates
The Principle must obtain Clearance Certificates
from the Contractor before any work can begin.
These Certificates prove that the Contractor is in
compliance with WSIB, to ensure that no-one
misses any premiums.
Clearance Certificates are only valid for 90 days,
(and they all expire at the same time, every 90
days!).
Kathryn Kissinger HR Services 2013

5. Here’s an Example:
 Home based business owner hires a contractor to turn spare bedroom
into office, requiring minor carpentry, drywall and electrical work.
 The Business owner must obtain, from the Contractor (preferably) or
WSIB, a Clearance Certificate which states the Contractor is up to date
and in compliance with WSIB and premium payments. These
Certificates must be kept by both parties for 3 years after the end
date of the project.
 If the Business owner fails to obtain this Clearance and the contractor
or his/her employee is injured on this job, the Principle (Business
owner) becomes liable to WSIB for the missing premiums.
Kathryn Kissinger HR Services 2013

6. Here’s an Example:
 If the Contractor then hires another sub-Contractor (an
electrician, for example), the Principle and the original
Contractor must both obtain the Clearance Certificate
from the (electrician) sub-Contractor.
This Bill also applies to a business such as a retail business
hiring a contractor to remodel the store and to a landlord
who hires a contractor to perform work on tenant-occupied
dwellings.
Kathryn Kissinger HR Services 2013

7. It’s the Law…
Failure to obtain these Clearance Certificates constitutes the
following Offences under Sections 149 through 158 of the
WSIA:
 Failure to comply with Registration
 Making a false declaration
 Failure to report a material change in circumstances
 Failure to register
 Failure to get a clearance certificate and keep them
for 3 years
Kathryn Kissinger HR Services 2013

8. Penalty
If convicted of these offences under the Act, the
following penalties apply:
1. If the person is an individual, he or she is
liable to a fine not exceeding $25,000 or to
imprisonment not exceeding six months or to
both.
2. If the person is not an individual (i.e.
registered as a corporation or a partnership), the
person is liable to a fine not exceeding $100,000.
Kathryn Kissinger HR Services 2013

9. Helpful Links:
WSIA
http://www.e-
laws.gov.on.ca/html/statutes/english/elaws_statutes_9
7w16_e.htm#BK186
e-Clearance
https://eservices.wsib.on.ca/portal/server.pt/commun
ity/eservicespublic/eclearance
WSIB main page http://www.wsib.on.ca/en
Kathryn Kissinger HR Services 2013