What is a Service Agreement?
A Service Agreement is an agreement by which a Contractor undertakes to carry out physical or intellectual work or provide a service to the University for a stipulated fee. The Contractor is free to choose the means of performing the work and no relationship of subordination exists between the Contractor and the University in respect of such performance.
Employee or Independent Contractor?
Faculty/Staff overseeing the service contract are responsible for determining if a Service Agreement is necessary or if the services will be paid to the service provider as an employee. Determining the status is complex and is guided by Canada Revenue Agency* guidelines.
Determining the Status
Prior to work commencing or initiating a Service Agreement, Faculty/Staff should complete an Employee/Independent Contractor Checklist to assist with determining whether an employee contract or service contract is required.
Once complete, review the information on Page 2 of the Checklist. Based on the results, proceed with the appropriate steps below.
Please note: the complete Checklist must be submitted with the contract for both employees and independent contractor.
Complete a Request for Contract Form and attach the signed Checklist, send to Human Resources.
Contact the Legal Department (Legal@ufv.ca) to obtain a copy of a Service Agreement and/or to discuss your needs to determine whether Procurement needs to be involved.
When the initial invoice has been received, please submit the following to Accounts Payable:
- Excecuted Service Agreement
- Initial Invoice
- Completed Employee/Independent Contractor Checklist
*This a a guide only; CRA is ultimately the deciding authority in all situations.