A recent decision of the Ontario Court of Appeal[1] may significantly increase the risk of legal exposure for an owner of a construction project.
As a result of this decision, engaging a General Contractor (“GC”) as the constructor on a construction project and allowing the GC to assume full operational control over the project may no longer insulate the project’s owner from liability under Ontario’s Occupational Health and Safety Act (“OHSA”).
The Court of Appeal has suggested that if an “owner”[2] is found to be an “employer”[3] pursuant to the OHSA, and the owner (or its staff) are regularly present at the project site, the owner may be held liable for health and safety matters for the entire project. This means that an owner may now be liable for health and safety matters over which it exercises no day-to-day oversight or control.
This article will provide a detailed breakdown of the Court of Appeal’s decision in Ontario (Labour) v Sudbury (City) (“Sudbury”) and explain why an owner may wish to take immediate steps to avoid being characterized as an “employer” in these circumstances.
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