WCB clearance letter: without one, you can owe a contractor's premiums

What does a clearance protect your client from in each province?

A clearance is the board's written confirmation that a contractor is registered and current. In Ontario, the WSIB says that by issuing one it waives its right to hold the principal liable for the contractor's unpaid premiums and other amounts owed wsib.ca. Each board runs its own version, with its own rules on how long it lasts, as of October 2026.

The Ontario figures come from WSIB policy 14-02-04, which applies to decisions made on or after September 22, 2025 wsib.ca. WorkSafeBC says the letter must confirm the subcontractor was active and in good standing for the entire contract period, and it must be addressed to your client worksafebc.com. WCB Alberta letters are free and name a single principal, so a contractor working for three companies needs three letters decc.wcb.ab.ca.

Why can your client end up paying a contractor's premiums?

Because the boards collect from whoever hired an unpaid contractor. Under section 141 of the Workplace Safety and Insurance Act, 1997, as the WSIB applies it, a principal without a clearance may be liable for the contractor's unpaid premiums and other outstanding amounts, up to the value of the labour portion of the contract wsib.ca.

Worked example, Ontario. Your client hires a framing contractor on a $150,000 contract, of which $60,000 is labour. The contractor walks away owing the WSIB $95,000. With no clearance, your client's exposure is the lower of the debt and the labour portion: the lower of $95,000 and $60,000, so up to $60,000. With a valid clearance covering the work, the exposure is nil.

British Columbia and Alberta use the same logic without an Ontario style cap on the board pages. WorkSafeBC says a hiring firm could be liable for premiums relating to the work the subcontractor provided worksafebc.com. WCB Alberta says a principal with no clearance letter may be liable for an unpaid contractor's premiums wcb.ab.ca.

Saskatchewan expects the clearance after the work is done but before you pay, and WCB Saskatchewan says it releases you from having to pay any amounts not paid on the contractor's account, while a Demand status means paying the board the requested sum out of what you owe the contractor wcbsask.com. In Manitoba, hiring a contractor who is not in good standing makes you responsible for including the labour portion of its earnings in your own reported assessable payroll and for reporting any workplace injuries while it works for you wcb.mb.ca. In Nova Scotia, good standing means the account is active and up to date, and when a covered contractor is not in good standing the hiring business is jointly responsible for its premiums and may withhold premium amounts from the contract, the only case where WCB Nova Scotia allows a wage holdback wcb.ns.ca.

The bigger Alberta trap is a contractor with no account at all. If the contractor doesn't meet the business test for its own account, WCB Alberta treats it as the principal's worker and the principal must report its earnings wcb.ab.ca. That is a separate question from the CRA's test, covered in employee or self employed.

How often should you pull a fresh clearance on a long contract?

Often enough that there is never a gap. An Ontario clearance is valid for up to 90 calendar days depending on when it was issued wsib.ca. An Alberta letter covers work done up to the date of the letter, and WCB Alberta advises a new one at hiring and before each payment when you pay in installments decc.wcb.ab.ca.

The Ontario count is a floor. A certificate can come back with fewer than 90 days left, so you renew on the expiry date shown, not on a fixed calendar. Two services cut the manual work: WorkSafeBC clearance alerts email you when a listed firm's status changes worksafebc.com, and WCB Alberta's Automatic Clearance Notification is a report emailed each business day flagging only contractors with an actual or potential clearance problem decc.wcb.ab.ca.

What changes for construction work in Ontario?

In construction, the clearance stops being optional. A principal who directly retains a contractor for construction work must obtain a clearance before work begins and keep one in effect for the whole job, and starting without one is an offence for both the principal and the contractor wsib.ca.

The same policy, 14-02-19, makes it an offence for the principal to let an expired or revoked clearance lapse without renewing it, and for the contractor to hide a revocation. Both sides must keep clearance records for at least three years from the date obtained. A householder who directly hires a contractor for exempt home renovation work only falls outside the policy wsib.ca.

Outside construction, independent operators may not be obligated to register with the WSIB and so can't get a clearance at all wsib.ca. Whether your client's business needs WSIB coverage in the first place is covered in is WSIB mandatory in Ontario.

What should you do when a BC letter isn't clean?

Read the status line before releasing payment. WorkSafeBC prints one of several statuses, and only some of them protect your client worksafebc.com.

Some letters, including ones for asset purchases, a limited period or a firm that isn't registered, can be requested only by phone or fax, not through the online application worksafebc.com.

Why does a Quebec validation not protect your client?

The CNESST form for a validation de conformité says the reply can be used to bid on a contract or show compliance to a third party, but that it does not release a principal (donneur d'ouvrage) from paying the contractor's health and safety assessment under section 316 of the Act respecting industrial accidents and occupational diseases cnesst.gouv.qc.ca.

So a bid stage validation is not the end of the file. Mon espace CNESST lists three separate requests: validation de conformité, a follow up on compliance status (suivi de l'état de conformité), and the attestation de conformité, and you need a clicSÉQUR Entreprises account to make them cnesst.gouv.qc.ca. Confirm with the CNESST which document covers your client's contract period before the final payment. Registration and premium basics are in CNESST registration.