Entrepreneurship & Small Business

Hiring contract driver/dental lab helper - any precautions to take?

  • Last Updated:
  • Jul 17th, 2018 10:45 pm
[OP]
Deal Addict
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Feb 16, 2004
1487 posts
48 upvotes
York Region

Hiring contract driver/dental lab helper - any precautions to take?

Hey guys,
So we are at the stage of our business where we need help.
We posted an ad for Driver/Dental lab helper.
Many people applied, some interviews scheduled.

My question is this: this is CONTRACT position that will turn into full time contract or permanent in early 2019. We offered an hourly wage + gas card ( will issue costco corporate card for filling up at costco).
If he is self employed and HST registered - great, if not - who cares. We will only issue a cheque with NO deductions on it - they would have to pay their own taxes from it.

This driver will be using his own car and insurance. I dont think that he/she will call her car insurance to let them know of vehicle being used for local deliveries. HOW CAN I PROTECT MYSELF AS AN EMPLOYER and not be liable for any car damage if the accident occurs while this person is on delivery?

Any other suggestions are appreciated guys :)
6 replies
Deal Fanatic
User avatar
Mar 23, 2008
7467 posts
4331 upvotes
Edmonton
edkate wrote:
Jul 11th, 2018 2:52 pm
Hey guys,
So we are at the stage of our business where we need help.
We posted an ad for Driver/Dental lab helper.
Many people applied, some interviews scheduled.

My question is this: this is CONTRACT position that will turn into full time contract or permanent in early 2019. We offered an hourly wage + gas card ( will issue costco corporate card for filling up at costco).
If he is self employed and HST registered - great, if not - who cares. We will only issue a cheque with NO deductions on it - they would have to pay their own taxes from it.

This driver will be using his own car and insurance. I dont think that he/she will call her car insurance to let them know of vehicle being used for local deliveries. HOW CAN I PROTECT MYSELF AS AN EMPLOYER and not be liable for any car damage if the accident occurs while this person is on delivery?

Any other suggestions are appreciated guys :)
Just because you consider it a contract position (as opposed to employer/employee relationship) doesn't mean that you're safe from the CRA declaring them as your employee, and making you liable for all the deductions you didn't pay. You should speak to an accountant.

As far as making sure you're not liable for any accidents, you should speak to a lawyer. Your contract should likely be done professionally to make sure your bases are covered.

C
[OP]
Deal Addict
User avatar
Feb 16, 2004
1487 posts
48 upvotes
York Region
Thanks! we did speak to our accountant already about this.
My question was not about the pay but rather about a vehicle accidents.
Penalty Box
Apr 5, 2013
3344 posts
871 upvotes
markham
the onus is you to ask for a certificate of insurance.
[OP]
Deal Addict
User avatar
Feb 16, 2004
1487 posts
48 upvotes
York Region
you mean just asking if a potential employee has a vehicle insurance for herself?
Member
Dec 15, 2015
479 posts
281 upvotes
Toronto
edkate wrote:
Jul 16th, 2018 1:01 pm
you mean just asking if a potential employee has a vehicle insurance for herself?
You will want to contact a lawyer for the actual answer.
Deal Expert
Aug 2, 2001
15124 posts
5399 upvotes
In my province a subcontractor who does not provide their own worker's comp insurance would then be covered by the person contracting them. Therefore, if this individual is on "employment business" in a car accident your worker's comp premiums may then cover them and their injuries.

Obviously you do not cover their vehicle - but it's the injuries to them that you want to cover. For their vehicle you would want them to provide proof of insurance and that their vehicle is being used for commercial purposes.


That said, a previous poster is correct that you may actually be hiring an employee and not a contractor. I would recommend seeking another opinion on this. You may open yourself up to liability as you are required to make deductions and if you fail to do so, you will likely pay BOTH portions (plus interest) if caught.

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