When is a clearance needed? - WCB Alberta

When is a clearance needed?

The Workers' Compensation Act outlines the following situations when you will need a clearance:

1. Hiring an individual or company (section 126)

Before hiring an individual or company, and before releasing payment, you should get a clearance to make sure they have a WCB account in good standing. If you hire a contractor or subcontractor who doesn't have WCB coverage, you could be responsible for payment of any outstanding WCB premiums.

You can search the clearance status of any company registered with WCB. Clearance letters can be emailed, faxed or printed online.

Automatic notifications for clearances

If you are a registered myWCB online user, you can visit online services to sign up for automatic clearance notifications. Once you sign up, you can save a list of companies you hire and get clearances for them all at once rather than one at a time. A report will be emailed to you letting you know about any changes that could affect your liability.

Find out more about coverage for contractors and subcontractors.

2. Financial institution and creditor purposes (section 129/130)

Financial institutions and anyone who owns a debt or equity interest in an organization should get a section 129 or section 130 clearance letter for:

  • refinancing,
  • partial sale of assets
  • creditors earning profit from their financial assets

If an employer has defaulted on their premiums, WCB has priority on the property and/or the proceeds of property used in connection with the business.

3. Sale of a business (section 132)

You have a responsibility to get a clearance when buying a business, its stock or equipment.

4. Sale of primary timber products (wholesale) (section 133)

You have a responsibility to get a clearance when buying primary timber products (with the exception of retail sales of primary timber products).