Contract Employees – Independent Contractors Policy

HR-07
Contract Employees – Independent Contractors Policy
DepartmentHuman Resources
Creation DateApril 1, 2004
Approval DateAugust 1, 2008
Effective DateAugust 1, 2008

Organizational Scope

The contract employees/independent contractors policy shall apply to all non-permanent employees of Michener.

Purpose

The purpose of this policy is to clearly outline the guidelines for how individuals or companies that provide service to Michener enter into a contract with Michener and are paid for those services.

Policy

Contract full time or part time employees

Employees contracted to work for a defined period of time that are hired through Human Resources and paid by Payroll. Services that constitute a total of less than $500 per calendar year will be paid through Accounts Payable.

Hiring a new employee on an employment contract:

A Request to Hire or Recruit Staff form must be filled out by the manager initiating the recruitment or hire and submitted to the relevant Vice-President for final approval. The request may be subject to further approval by the Executive Leadership Team if it is outside approved fiscal budgets.  The approved Request to Hire or Recruit Staff form is then submitted to the Human Resources department who will, along with the requesting manager, start the recruitment/hire process.

Renewing an employment contract:

A Request to Hire or Recruit Staff form must be filled out by the manager and submitted to the relevant Vice-President for approval. The request may be subject to further approval by the Executive Leadership Team if it is outside approved fiscal budgets. The approved Request to Hire or Recruit Staff form is then submitted to the Human Resources department who will be responsibly for creating a letter outlining the extension.

Services that are provided that constitute a total of less than $500 per calendar year will be paid through Accounts Payable. The Agreement for Services Less than $500 per Calendar Year must be completed, appropriately signed and submitted to Finance.

Fee Contract for Existing Employees

Current full-time and part-time faculty and staff who wish to engage in teaching for part-time, continuing, distance or international education programs, or to perform other services outside of normal working hours, may do so, subject to the authorization of their supervisor.

The Agreement for Employee Services form must be completed with approvals obtained from the hiring manager and employee’s Chair/Director. Further approval is also required by the relevant Vice President and the Human Resources department

All fees received will be considered as earned income and subject to all statutory deductions. Fees will be processed through regular Payroll process.

Michener prohibits all employees from using company names, other individual’s names or declaring independent contractor status in performing the services.

Independent Contractor

Independent contractors, in accordance with Revenue Canada guidelines and any applicable legislation and case law, will be paid through Accounts Payable.  Managers who wish to hire external contractors must complete an Independent Contractor Agreement form and submit to the relevant Vice President, or delegate, for approval.  The request may be subject to further approval by the Executive Leadership Team if it is outside approved fiscal budgets, and/or may require a request for proposal, dependent on the service (e.e. consultant). The approved Independent Contractor Agreement is then submitted to the Finance department.  Registered companies would be required to submit a GST business number.

Secondments

Those hired through Human Resources on secondment from another organization may be exempted from this policy at the discretion of the Human Resources and Finance departments.

Secondment agreements must be signed prior to the individual starting work at Michener and must be signed by the relevant member of Executive Leadership Team.

 

Associated Documentation

Forms

Revision History

Date Reviewer Change(s) Made Policy Location(s)
December 5, 2014 Human Resources minor changes to wording and removal of Appendix A