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Can an employer ask a person to register a name or an incorporation so that this person can be invoiced for her or his services?

Subcontracting is widely used in the cleaning of public buildings. It is very often a diverted and illegal way to bypass the law. Moreover, subcontracting often hides situations of moonlighting and tax evasion.

The fact of having a company, whether it is incorporated or not, is not enough for its owner to be considered a subcontractor. The fact of having a G.S.T. and a Q.S.T. number and even of being accepted as an autonomous worker according to tax laws does not guarantee in any way that the status of subcontractor is accepted for as much by the Parity Committee.

It should be known that the definition of an employee according to An Act Respecting Collective Agreement Decrees is much broader than that according to tax laws. The decrees having an objective of social protection, jurisprudence has granted the statute of employee to many subcontractors, and this, in a variety of situations and even where many would have thought that subcontracting was carried out within the rules.

It should be known that the principal contractor (that which holds the service contract and which gives it out in subcontracting) remains jointly responsible for the pecuniary obligations set by the law. Many companies were surprised to receive from the Parity Committee, claims for several thousands of dollars of wages which the subcontractor had not paid to its employees. Moreover, they were sued for not having produced exact monthly reports, following the refusal by the Parity Committee to consider their subcontractors as autonomous workers.

Before entrusting a contract in subcontracting or before accepting a subcontract, contact the Parity Committee, even anonymously, to have a better idea of the risks attached to this kind of situation.