There are so many different facets of workforce compliance that it may be difficult for you to fully understand it. Don’t worry, you’re not alone. While you can read up on how your staffing agency can approach these tricky legal matters, you’re likely to still be left with questions.
To help you, we’ve answered three of the most common questions associated with workforce compliance.
1. What’s the Difference between a Contractor and an Employee?
Misclassification is a major workforce compliance issue in the staffing industry with serious consequences. Some Canadian companies will try to avoid paying payroll taxes, CPP premiums and EI contributions by misclassifying employees as independent contractors.
Employees are not only covered by federal and provincial labour laws but are hired through a different process than an independent contractor—usually an application and job offer versus a proposal, respectively. Independent contractors have complete control over when and where their work is done, as long as it is completed by a previously decided-upon date.
Money is another area where employees and independent contractor differ, as employees are paid hourly or salaried and independent contractors are paid on a set contract amount after workload completion. This payment is received by an independent contractor after an invoice is issued, unlike an employee who is paid for regular pay periods.
2. What Do I Need to Know about the WSIB?
In 2015, the WSIB issued over $2.5 billion to just under 230,000 workers. For temporary employees, their benefits rely on the services of a staffing agency. Staffing agencies need to ensure that the proper paperwork is filed for placed employees and the proper training is provided to avoid any and all preventable workplace accidents.
What you as a staffing agency need to do to abide by WSIB workforce compliance:
- Client compliance is essential before you begin placing candidates. If you don’t ensure this compliance, you could be responsible if candidates are injured on the job and you didn’t take the necessary precautions to prevent it. Ask questions and check to make sure your clients are following proper workplace procedures and providing employees with orientation and safety training.
- Ensure both your clients and your placed candidates have thoroughly agreed upon the worker’s workplace responsibilities. This can be achieved by having your candidates read through and sign the company rules as well as the workplace harassment and health and safety policies.
3. Are There Back Office Solutions Available for My Staffing Firm to Comply with Workforce Standards?
If you’re unfamiliar with workforce compliance, you don’t need to stress. There are options available to your company that can assist you in complying with all Canadian regulations. A reputable back office solutions provider will have previously established relationships with Canadian Workplace Safety Boards and years of experience complying with government standards.
You can also benefit from a worker classification system from a back office solutions provider. This will guarantee that you properly classify your temporary candidates every time, avoiding any legal non-compliance.
Lastly, you can purchase low-cost insurance through a back office solutions provider. Not only does this benefit your company but also your workers, making your agency a desirable option for high-quality candidates.