3000-1-2Determination of Working Relationships

Issue Date:
May 04, 2016
Supersedes Date:
December 17, 2009

Upon request, the college will provide a copy of this policy in an alternate format.

In order to be in compliance with Canada Revenue Agency (CRA) requirements, the nature of the employment relationship of individuals providing services to Lambton College must be defined. The following policy statements, guidelines and procedures will serve to define the nature of the employment relationship for individuals or businesses that provide services to Lambton College in order to ensure the College is in compliance with CRA regulations.

Policy

  1. Prior to the activity start date, it must be determined whether the individual hired to deliver the activity is recognized as an employee of the College or as a contractor eligible for a Contract for Service
  2. Lambton College will adhere to the Canada Revenue Agency guidelines to determine a worker’s employment status.
  3. The nature of the employment relationship of any business or individual engaged to provide a service to Lambton College must be considered and determined per this policy. For the purposes of this policy, a business is defined as a sole-proprietorship, partnership, incorporated company, registered charitable organization or registered non-profit community group.
  4. A full-time College employee undertaking a part-time assignment for the College will be considered an employee and paid through payroll, whether the agreement is with the employee as an individual or with a business with which the full-time College employee is associated.
  5. Where an individual performs work for the College under the following terms, they are considered an employee of the College:
    1. The individual agrees to provide personal services to perform the work;
    2. The College defines the work to be done (i.e. course outlines, job descriptions, project outlines);
    3. The College provides the materials/tools required in completing the work (except for Distance delivery), e.g. photocopying, secretarial services, overhead transparencies, office space;
    4. The College determines the time and place to perform the work (e.g. courses advertised that specify time and/or place);
    5. The College determines the rate of pay according to College policy or Continuing Education Guidelines and/or the applicable Collective Agreement;
    6. The College maintains ongoing control of the individual in the performance of the work being done and can, on an ongoing basis, direct the individual doing the work; can discipline and discharge the individual.
     
  6. When an individual performs work for the College under the following terms, they are considered to be in a contract for services relationship:
    1. The individual determines/defines the work to be done via an estimate, proposal or tender;
    2. The College purchases the delivery of a complete course or seminar from a business;
    3. The design of the course or seminar and any materials required, such as, outline, lecture notes, and/or handouts are provided by and remain the property of the business OR the College purchases a complete non-instructional service from a business. This service results in a finished product provided to the College. The College determines the task to be performed and to what standard, but it does not determine how the task is performed and does not provide direct supervision, equipment, supplies or materials;
    4. A time frame is negotiated for completing the work as opposed to defining specific tasks performed on specific dates;
    5. The individual performing the work is chosen by the contracting firm;
    6. The individual performing the work is hired, supervised, disciplined and discharged by the contracting firm.
     
  7. When an individual is considered an employee of the College, he or she must be paid through the College payroll system and statutory deductions (i.e. Income Tax, Employment Insurance, Canada Pension) will be withheld as required by the law.
  8. When an individual is considered to be in a contract for services relationship with the College, the Purchasing Policy will apply and the service provider will be paid through an invoice submitted to the College.
  9. The nature of the working relationship will be determined initially by the hiring or contracting manager and confirmed by the Vice-President, Corporate Performance and Employee Relations or the Director of Finance. Appendix A contains the form and operational guidelines to be used.
  10. In those situations in which the working relationship is not clear, or the supplier is in disagreement with the decision, the individual in question will be compensated as though an employer - employee relationship exists, until Canada Revenue Agency rules otherwise through a completed Canada Revenue Agency form CPT1, available from the CRA forms website (www.cra-arc.gc.ca/forms).

Appendices

Appendix ‘A’ - Working Relationship Questionnaire Form (PDF)

Appendix ‘B’ - Contract for Services (PDF)


For questions or concerns regarding policies, please contact:

Jim Elliott
Director, Quality Assurance & Institutional Research
519-542-7751 x 3489
jim.elliott@lambtoncollege.ca

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