WCB Manitoba clearances: what hiring a contractor who is not in good standing costs you

Manitoba's WCB clearance system runs around the clock and answers one question: is this business in good standing? The answer matters because the cost of a non-compliant contractor falls on whoever hired them.

What a clearance shows

A WCB Manitoba clearance letter shows whether a business, contractor or subcontractor has complied with WCB requirements, meaning it is in good standing. The clearance system operates 24 hours a day, 7 days a week.

If the contractor is not in good standing

You will be responsible for including the labour portion of their earnings in your reported assessable payroll, and for reporting any workplace injuries that happen while the contractor works for you. Firms without appropriate coverage can be treated as deemed workers of the contractor who hired them; premiums are charged on the labour portion only.

How much counts as labour

WCB Manitoba publishes a schedule for the labour portion. Where the contractor supplies only labour, 100% of the contract is labour; where they use their own vehicle or hand tools, WCB generally treats 85% as labour.

You cannot pass it back

The Workers Compensation Act says principal contractors must not deduct money from subcontractor payments to offset WCB premiums they pay on the labour portion.

When to check

Check before hiring, and get a clearance before the final payment on any contract; if the subcontractor owes the WCB money, you are liable to withhold the premiums on the labour portion.

Prevention Checklist

• Check the contractor's clearance before hiring.
• Check again before final payment.
• If not in good standing, report the labour portion and any injuries.
• Use WCB's labour schedule to calculate the labour share.
• Do not deduct premiums from the contractor's payments.

References

1. Workers Compensation Board of Manitoba. Clearances, Web page, Good standing; before final payment; 24/7. Accessed 2026-11-01.
2. Workers Compensation Board of Manitoba. Coverage for contract workers (2025), Web page, Deemed workers; liability. Accessed 2026-11-01.
3. Workers Compensation Board of Manitoba. Assessment schedule for contract labour, Web page, 100% and 85% labour. Accessed 2026-11-01.

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