Do I need a WSCC clearance certificate when I buy a business in the Northwest Territories?

Under the Act, in the consolidation read for this page, section 144(2) says the purchaser of a business, or the bulk sale purchaser of stock or equipment used in connection with a business, shall demand and obtain a clearance certificate from the vendor. The timing matters: the certificate must be demanded and obtained before paying any part of the purchase price or giving the vendor any security for it. Confirm the current text of the Act before relying on this page.

Who issues it and who provides it

Section 144(3) says the Commission may issue to the vendor a clearance certificate stating that it has no claim in respect of the business, stock or equipment, and the vendor must, on demand, provide the certificate to the purchaser. The certificate therefore runs through the seller. A buyer asks the seller for it, and the Commission issues it to the seller. Ask the WSCC how to request one and how long it takes, because the Act as read does not set that out.

If the buyer does not receive it

Section 144(4) says a purchaser who does not receive the clearance certificate is liable to the Commission for any assessment or other money due to the Commission by the vendor, not exceeding the fair market value of the business, stock or equipment referred to in subsection (2). The cap is the fair market value of what was bought. Section 143 also gives amounts due to the Commission priority over assignments, debts, liens, charges or encumbrances, other than wages due to workers and prior mortgages on land or personal property.

A separate successor power and registration

Section 9(1) is a different power. The Commission may determine that an employer is the successor to a former employer and may treat the successor employer as the former employer for all purposes under the Act. A clearance certificate and a successor determination are separate tools. The WSCC also says all employers who operate or establish a business in the Northwest Territories and/or Nunavut must register with it, unless they meet the Temporary Employer criteria, and that employers who fail to register must pay a penalty.

• How to request a certificate for this seller, and how long it takes.
• Whether the certificate covers the whole business or only the stock or equipment being bought.
• Whether the Commission is considering a successor determination under section 9.

The WSCC also serves Nunavut, but this page covers the Northwest Territories only. Nunavut’s own Act was not read, so do not assume section 144 applies there. For the territory’s separate employee rules, see employment standards when a business is sold in the Northwest Territories.