A WSIB clearance certificate is an official document issued by Ontario's Workplace Safety and Insurance Board confirming that a registered employer's premiums are paid up to date as of a specific date. The certificate is required by most owners and general contractors in Ontario before they release final payment on a construction project. Without a valid clearance, the owner can be held liable for the contractor's unpaid WSIB premiums under the principal-and-contractor liability rules of section 141 of the Workplace Safety and Insurance Act. Contractors can request a clearance certificate at no cost through the WSIB website, and the certificate is typically valid for 60 to 90 days from the date of issue. Similar clearance systems exist in other provinces: BC's WorkSafeBC clearance, Alberta's WCB clearance, and equivalent in each province with workers' compensation legislation.
Why it matters to Canadian contractors
- Final payment on most construction contracts in Ontario is conditional on producing a current WSIB clearance. Without it, payment is held indefinitely and your contract is in technical breach.
- Owners face principal-and-contractor liability for unpaid premiums. Smart owners enforce clearance strictly because a small unpaid premium can become a personal-liability claim.
- Sole proprietors and partnerships in construction are required to register with WSIB (mandatory in construction since January 1, 2013, even if you have no employees). Many sole-prop contractors are not aware of this and only discover the gap when they cannot get a clearance.
- Clearance certificates are project-specific. You need a fresh one for each contract, not a single annual document.
Common mistakes and pitfalls
- Mandatory WSIB coverage in construction extends to working partners and sole proprietors, not just employees. Coverage applies even if you have no payroll.
- Independent operators in construction are also typically required to register, despite the 'independent contractor' label. WSIB applies an industry-specific test.
- Late premium payments invalidate a clearance instantly. A contractor who is current today can have an invalid clearance the moment they miss a quarterly remittance.
- Owners and GCs sometimes accept a screenshot or PDF copy. A fraudulent or expired clearance does not protect the contractor; the underlying liability still attaches to the owner.
- BC, Alberta, and other provinces have their own clearance systems and certificates. Cross-provincial work requires checking the destination province's rules, not just Ontario's.
Related
- Glossary: Statutory holdback→
- Glossary: Ontario Construction Act→
- Proper invoice requirements→
- Ontario Construction Act guide→
This glossary entry is for general information only and does not constitute legal or tax advice. Canadian tax and construction law rules vary by province and contract. For advice specific to your situation, consult a licensed professional.