What is the difference between a subcontractor and an employee?

In Ottawa construction projects, the difference between subcontractors and employees affects your liability, costs, and legal obligations as a homeowner hiring work.

When you hire a general contractor in Ottawa, they may use both employees and subcontractors to complete your project. Understanding this distinction protects you from potential liability and helps you verify proper coverage.

Employees vs. Subcontractors: Key Differences

Employees work directly for the contractor under their control and direction. The contractor pays them wages, deducts taxes, provides WSIB coverage, and controls how and when they work. If a contractor's employee is injured on your Ottawa property, the contractor's WSIB coverage should protect you from liability.

Subcontractors are independent businesses hired by your main contractor to perform specific trades - like electrical, plumbing, or drywall. They operate their own businesses, have their own WSIB accounts, and work under contract rather than as employees. In Ottawa, specialized trades like electrical (requiring ESA licensing) and gas work (requiring TSSA certification) are typically done by subcontractors.

Why This Matters for Ottawa Homeowners

When verifying your contractor through the City of Ottawa Building Code Services (613-580-2424), ask specifically about their subcontractor arrangements. Each subcontractor should have:

• Valid WSIB clearance certificate from wsib.ca/clearances
• Appropriate trade licensing (ESA for electrical, TSSA for gas work)
• Their own liability insurance
• Proper business registration with the Ontario government

The main contractor remains responsible for coordinating all work and ensuring subcontractors meet Ottawa building permit requirements. However, if a subcontractor lacks proper WSIB coverage and gets injured, you could face liability claims.

Red Flags to Watch For

Be cautious if a contractor claims workers are subcontractors but treats them like employees - controlling their hours, providing tools, or paying them wages instead of invoicing arrangements. This "misclassification" can leave you exposed if someone gets hurt.

Also watch for contractors who can't provide subcontractor insurance certificates or WSIB clearances. Legitimate Ottawa contractors will readily provide this documentation before starting work.

Protecting Yourself

Before any work begins on your Ottawa property, request WSIB clearance certificates for both the main contractor and any subcontractors. Verify electrical subcontractors through esasafe.com/contractor-locator and gas technicians through tssa.org. Your building permit from ottawa.ca/building should list the responsible contractors for each trade.

Remember, while subcontractors handle specialized work, your main contractor remains accountable for coordinating the entire project and ensuring all work meets Ontario Building Code requirements. This structure allows you to work with one primary contact while benefiting from specialized trade expertise.

For complex renovations involving multiple trades, this subcontractor system is standard practice in Ottawa and works well when properly managed with appropriate insurance and licensing verification.