By Charlotte Anderson, PT, PhD(c), Owner ALPHA Health Services, Co-owner PhysioLogicPLUS
So, the time has come to expand your clinic’s services. It is time to hire another physiotherapist. So, now what? It is important to differentiate if you are hiring an independent contractor or an employee. The negotiation process is different depending on their employment status. The following is a list of 10 things to be aware of when negotiating a contract with a new physiotherapist as an independent contractor.
- Pay Terms
Discuss and determine if the new hire will pay a rent, or if it will be fee for service. If fee for service, be sure to negotiate the percentage the physiotherapist will receive. If they are paying rent, be clear on if they are paying hourly or daily and when their rent is due. It is a good idea to ask for post-dated cheques.
- Pay Schedule
Set out the pay schedule from day one. Explain to the new hire how and when they will be paid. If you decide to pay the new hire via direct deposit, be sure to collect their banking information. Be sure to make the physiotherapist aware of when they can expect to be paid (bi-weekly, monthly, etc.).
- Extracurricular Courses
New hires may expect an academic course fund or increase in pay with successful completion of courses. As an independent contractor, this addition is not feasible, however, owners may offer a change in split with further education.
- Non-Solicitation Clause
Be very clear on the terms of the contract. Clinic owners often instate a non-solicitation clause stating that contractors cannot solicit patients after they have finished working at a clinic. Check out: https://opa.on.ca/wp-content/uploads/2018/07/New-Grad-Kit-2018.pdf for further information. A patient is not “owned” by any clinic, or any practitioner.
- Termination Notice
Discuss the terms of termination and the proper method and timeline for termination of the contractor for both the new hire and the owner.
- Independent Responsibilities
As an independent contractor, your new hire is responsible for making sure their insurance is up to date and they are in good standing with the college. Be clear to state this so there is no misinterpretation or issues. Be very clear the coverage they require and ask for confirmation of insurance coverage. Also make sure they are aware that as an independent contractor, the clinic owner is not responsible for contributing to a pension plan or covering health care benefits.
- Clinic objectives and values
It is a good idea to be very clear in the operating mandate and objectives of the clinic. A new hire must be made aware of these and agree to work within these objectives. It is also wise to allow the new hire to ask questions and bring up any questions or issues they may have.
- Vacation
As an independent contractors, you set your own hours. However, it is professional courtesy to clear a vacation with an owner and often this protocol will be discussed at the time of signing the contract.
- Expectations with clients (treatment times, follow ups)
Although it may seem obvious, lay out the how the clinic works. The treatment times, how patients are billed, expectations for follow up and the number of patients to be seen daily. Be sure to have the new hire sign off on these, and if they have any issues to discuss it early.
- Is this new hire actually an independent contractor?
- This is the most important point of all. Make sure that your new physiotherapist actually is an independent contractor, according to the rules of the Canadian Revenue Agency (CRA). Here is a link to the CRA’s guide to whether you are hiring an employee or an independent contractor (note that the term “self-employed worker/individual” is used as a stand-in for independent contractor in this CRA information page).
