Some of our competitors however utilize a growing practice by which they maintain a subcontractor relationship with their drivers strictly to avoid paying employer related benefits (CPP, EI, WSIB etc.) The purpose of this practice is to gain a cost advantage over other driver agencies that adhere to their employer related obligations. In most cases these agencies/services provide the same driver to a customer on a full time basis.  This is clearly not a subcontractor relationship. This practice is a risk to the customer and the driver because it will not meet government defined employer/subcontractor relationship tests.

The Ontario Ministry of Labour, Revenue Canada, the Employer Health Tax branch of the Ministry of Finance, along with legal specialists for the most part does not support a subcontractor relationship of the nature described above. WSIB is very clear on the employee / subcontractor issue. The only drivers considered true subcontractors by the "Board" are owner operators. All other drivers in their view are deemed to be employees.

Not only is there agreement that this type of so-called subcontractor relationship is a questionable one, the Employer Health Tax Branch stated it would have recourse against a third party for non-payment of EHT in the event they are "found to be employer or joint employer". With the government’s quest for lost revenue, you can be sure that in a questionable relationship of this nature, all avenues will be pursued. In simple terms, if the Driver Agency/Service does not pay or is unable to pay their EHT as a result of an audit, they will then pursue the end use which is you the customer. 

A legitimate driver personnel agency providing drivers on an employer/employee basis can prevent this from happening, eliminating any risk to the customer.

Existing and potential customers are encouraged to confirm the relationship that the Driver Agency/Service has with their drivers. Although no official letters are provided by the MOL, EHT Branch, WSIB or Revenue Canada, a simple meeting with the Driver Agency/Service should establish that their employer payroll obligations are being fulfilled. Forest City Transportation Resources/Signature Staffing Group would provide a letter of certification signed by our President that the employer/employee relationship exists and that our employer payroll obligations are being fulfilled.

If a driver agency/service cannot or will not establish that they are meeting their employer payroll obligations, then we strongly recommend that you avoid them.