Question 1

Is a cleaning worker an employee or independent contractor in Canada?

Accepted Answer

The distinction is determined by the Sagaz test established by the Supreme Court of Canada (2001 SCC 59). Key factors include who controls how the work is done, who provides equipment, the degree of financial risk, and whether the worker operates their own business. This template structures the relationship as an independent contractor arrangement.

Question 2

Do cleaning services require WSIB/WCB coverage?

Accepted Answer

Requirements vary by province. In Ontario, independent operators are not automatically insured through WSIB but may voluntarily elect coverage. Businesses with employees in the cleaning industry generally must register with their provincial workers' compensation board. This template includes an optional insurance clause covering WSIB/WCB clearance certificates.

Question 3

What is WHMIS 2015 and how does it apply to cleaning services?

Accepted Answer

WHMIS 2015 (Workplace Hazardous Materials Information System) requires that all hazardous cleaning products be properly labelled and accompanied by Safety Data Sheets (SDS). Workers must be trained in the safe handling, storage, and disposal of hazardous chemicals. This template requires the Service Provider to comply with WHMIS 2015 and make SDS available upon request.

Question 4

Do I need to charge GST/HST on cleaning services?

Accepted Answer

Commercial and residential cleaning services are generally subject to GST/HST in Canada. If the service provider's annual revenue exceeds CAD $30,000, they must register for GST/HST. The rate varies by province: 5% GST in Alberta and the territories, 13% HST in Ontario, and 15% HST in the Atlantic provinces. Some home care cleaning services may qualify for exemptions under specific conditions.

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