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Hiring and retention

Hiring a self-employed worker without risk: contract, insurance, licences

By · Published · 7 min read

Property manager and self-employed contractor reviewing a paper contract on a pickup truck hood

Friday, 4:30 p.m. Your drywall contractor texts that he won't be able to finish the basement on Monday, and you realize you have no business number, no written contract and no proof of insurance. Just a cell number and a handshake. Hiring a self-employed worker can save your season, as long as you do a few checks first. Here's the checklist, a sample contract and the trap to avoid.

Check no. 1: who is this business, really?

Before you talk price, make sure you know who you're dealing with. Quebec's enterprise register can be searched online for free. You can look up a business by its Québec enterprise number (NEQ), by its name or by a related word, and even search for a person by name to see which businesses they're linked to.

What the register shows you:

  • the NEQ and the registration status;
  • the names the business uses;
  • the addresses of its establishments;
  • its officers and directors, and its ultimate beneficial owners.

A self-employed worker operating under their own name isn't always required to register: it depends on their situation. But if they use a business name, that name should appear in the register. If nothing matches, ask the question plainly before you sign anything.

Also ask for their GST and QST numbers if they charge you taxes. A complete invoice, with the right information, protects you when you claim your input tax credits. Invoicing correctly: required details and sales taxes explains what it must include.

Do it today: look up every subcontractor you already work with in the register. Write down the NEQ and status in your supplier file.

Check no. 2: the RBQ licence, if it's construction work

Renovation, roofing, electrical, plumbing, excavation: as soon as construction work is involved, the Régie du bâtiment du Québec (RBQ) comes into play. For residential renovation work, the contractor must hold a valid licence, with the subclasses that match the work in the contract. A building painter and an electrician don't hold the same licence, and a licence "in good standing" that doesn't cover your work won't do you much good.

In the RBQ's register of licence holders, you enter the licence number or the contractor's name. The record shows you:

  • whether the licence is valid, and its classes and subclasses;
  • the business's NEQ and contact details;
  • the licence's qualified representatives and their fields;
  • the surety that provides the licence bond, and the claims and indemnities paid over the last five years;
  • any restriction for public works.

Why does it matter? With a licensed contractor, you have access to a financial guarantee (the bond) if there's a dispute. Without a licence, you lose that protection and the RBQ's oversight. If you have doubts about an offer of unlicensed work, the RBQ takes complaints at 1-800-361-0761.

Do it today: for your next construction contract, print or save the contractor's RBQ record and check that the subclasses cover every type of work planned.

Check no. 3: insurance and the CNESST

Civil liability insurance covers damage caused to others during the work: a water leak at your client's home, a ladder falling on a car. Nothing stops you from making it a condition of the contract. Ask for current proof of insurance, check the expiry date and the coverage amount, and keep a copy in your file.

On the CNESST side, there's a detail many employers don't know. Under section 316 of Quebec's Act respecting industrial accidents and occupational diseases, the CNESST can require the employer who retains the services of a contractor to pay the contribution owed by that contractor. In other words, if your subcontractor has employees and doesn't pay their contribution, the bill can land on you. The law provides that you can then get reimbursed by the contractor and withhold the amount from what you owe them.

The good news: when you show that you retain the services of a contractor, the CNESST can tell you whether that contractor owes a contribution. Note that a "compliance validation" provided by the contractor themselves doesn't release the client from paying the contribution, according to the CNESST form. For your specific case, contact the CNESST.

Do it today: add two lines to your supplier checklist: "proof of insurance received (expiry date)" and "CNESST contribution checked."

The contract: what it must spell out in black and white

The RBQ says it plainly: a detailed written contract with a timeline is your best protection. A verbal agreement leaves you with little recourse. A good contract with a self-employed worker doesn't need to be twenty pages, but it must answer these questions:

  • The parties: name, NEQ, RBQ licence number if applicable.
  • The deliverable: what will be done, with which materials, to which standards. "Paint the basement" isn't enough; "two coats on walls and ceilings, colours supplied by the client" is better.
  • The timeline: start date, stages, end date.
  • Price and staged payments: an amount tied to each stage delivered and accepted.
  • Changes: how an addition is approved and billed.
  • Insurance and licences required.
  • Ending the contract: what happens if either party doesn't keep its commitments.
StageDeliverablePayment
1Protecting the space, preparing surfaces20%
2First coat, walls and ceilings40%
3Second coat, touch-ups, clean-up40%

These percentages are an example, not a rule: what matters is that each payment matches something you can see and check. And no, a text saying "ok for Thursday!" doesn't count as a timeline.

Do it today: take the last contract you gave a self-employed worker and tick off the seven items on the list. Whatever's missing, add it to your template.

The fake contractor trap

Calling someone a "subcontractor" doesn't make them self-employed. The facts are what count. Revenu Québec looks at six criteria in particular: actual subordination (who decides how, when and where the work is done), the economic or financial criterion (who bears the risk of profit and loss), ownership of tools, integration of the work into your business, the specific result of the work and the attitude of the parties in the business relationship.

Signs you actually have an employee:

  • you set their schedule every day and tell them how to do each task;
  • they work only for you, with your tools, your truck and your company shirt;
  • you pay them by the hour, with no price set for a result;
  • they can't send a replacement or turn down a job.

If the relationship looks like employment, the person could be considered an employee, with the obligations that come with it: source deductions, labour standards, CNESST. When in doubt, Revenu Québec can issue a ruling on the status (form RR-65). For the full explanation of the criteria, read Employee or self-employed? The criteria that matter in Quebec.

Do it today: for each self-employed worker who works with you regularly, answer the four questions on the list honestly. More than two "yes" answers? Talk to an accountant or to Revenu Québec.

Doing all of this on GPP Emploi

On GPP Emploi, posting an ad is free. For a result to deliver, choose the "request for quotes" type: the self-employed worker sets their price. Interested contractors reply with their price, you choose, then the contract is signed on the platform (signature by typed name). Delivery happens in stages: after each stage is delivered, you have 72 hours to accept or dispute it. With no response, it's accepted automatically.

The matching fee is 5% of the contract amount, paid in credits at signing (minimum 1, maximum 40 credits, 1 credit = $25). Example: for a $4,000 contract, 5% is $200, or 8 credits. Protected payment isn't offered yet: you pay the contractor directly, according to the schedule signed on the platform. Details are on the pricing page.

On the verification side, our team checks licences against the public register and a badge then appears on the profile. Some construction work requires a verified RBQ licence to submit a quote. All messages, quotes and contracts stay on the platform, which gives you a written record. For other ways to recruit during a labour shortage, read Recruiting through a labour shortage: a guide for small service businesses.

Do it today: create your employer account, then visit the employer page to post your first request for quotes.

The bottom line

Three checks, a staged contract and an honest look at the relationship: that's what separates a good subcontractor from a bad Friday. Build your checklist once, and use it for every contract.

Frequently asked questions

How do I check if a contractor has an RBQ licence?

Enter their licence number or name in the RBQ's register of licence holders. The record shows whether the licence is valid, its subclasses, the bond and the claims over the last five years. Check that the subclasses cover the work in the contract.

How do I know if a business is registered in Quebec?

Search Quebec's enterprise register for free on Québec.ca. You can search by NEQ, by name or by a person's name. The record shows the registration status, addresses and officers, among other things.

Am I liable if my subcontractor doesn't pay their CNESST contribution?

It can happen. Under section 316 of Quebec's Act respecting industrial accidents and occupational diseases, the CNESST can require the employer who retains a contractor's services to pay the contribution that contractor owes. You can then get reimbursed and withhold the amount from what you owe them. Contact the CNESST about your specific case.

What's the difference between an employee and a self-employed worker in Quebec?

Revenu Québec looks at subordination, financial risk, ownership of tools, integration of the work, the result of the work and the attitude of the parties, among other things. The facts count, not the title written in the contract. Revenu Québec can issue a ruling using form RR-65.

Can I require liability insurance from a contractor?

Yes, you can make it a condition of the contract. Ask for current proof of insurance, with the expiry date and coverage amount, and keep a copy. Check the date before each new contract.

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