Common Legal Considerations for Psychologists

Professional Corporations & Practice Structure
Ontario psychologists may practise through a professional corporation provided that the corporation satisfies applicable requirements and obtains a Certificate of Authorization from the College of Psychologists and Behaviour Analysts of Ontario.
 
Professional corporations are subject to specific requirements concerning matters such as ownership, corporate structure, naming, directors, officers, and the activities carried on through the corporation.
 
Legal considerations may include:

• Psychology professional corporation incorporations

• Certificates of Authorization

• Corporate organization and governance

• Shareholder agreements

• Partnership arrangements

• Business ownership structures

• Corporate reorganizations

• Succession planning

• Practice purchases and sales
   

Practitioner, Employment & Contractor Relationships
Psychology practices may involve other psychologists, psychological associates, psychotherapists, social workers, administrative staff, supervised practitioners, independent contractors, and other healthcare professionals.
 
Clear agreements can address:

• Compensation arrangements

• Roles and responsibilities

• Scope of services

• Scheduling expectations

• Use of clinic facilities and technology

• Billing and collection arrangements

• Confidentiality obligations

• Insurance requirements

• Supervision responsibilities

• Restrictive covenants

• Termination provisions

• Client transition procedures
   

Where services involve supervision or collaboration between regulated professionals, the agreement should also reflect the professional responsibilities of the individuals involved.
 
Client Documentation & Privacy
Psychologists collect and maintain highly sensitive personal health information relating to client histories, assessments, diagnoses, treatment, clinical observations, test results, reports, and other aspects of psychological services.
 
The College's current professional standards contain detailed requirements concerning informed consent, confidentiality and privacy, client records, record security, access to records, and record retention.
 
Legal documentation may include:

• Informed consent documentation

• Client intake forms

• Privacy policies

• Fee and payment policies

• Cancellation policies

• Virtual service documentation

• Website privacy policies

• Website terms and conditions

• Internal practice policies

• Record retention policies

• Client communication policies
   

Assessment, Technology & Service Provider Arrangements
Psychology practices may rely on psychological assessment tools, testing platforms, electronic record systems, virtual care platforms, scheduling software, billing systems, and other third party service providers.
 
Psychological assessment materials can also involve confidentiality, test security, intellectual property, and access considerations. The College's Standards specifically address protection of test security as well as electronic and other client records.
 
Clear commercial agreements can establish expectations concerning services, pricing, access to information, privacy and security responsibilities, licensing, payment obligations, data management, termination, and transition arrangements.
 
Legal support may include:

• Software and technology agreements

• Virtual service platform agreements

• Electronic record agreements

• Assessment platform agreements

• Administrative service agreements

• Billing service agreements

• Vendor agreements

• Confidentiality agreements

• Commercial contract review and negotiation
   

Clinic Space & Business Operations
Whether you operate from a standalone psychology practice, shared healthcare facility, multidisciplinary clinic, or primarily virtual practice, the arrangements governing your premises and business operations should reflect how your practice actually functions.
 
Legal support may include:

• Commercial lease review and negotiation

• Clinic sublease agreements

• Space sharing agreements

• Cost sharing arrangements

• Administrative service agreements

• Management agreements

• Shared technology arrangements

• Supplier and vendor contracts
   

Relationships With Other Mental Health Professionals
Psychologists frequently practise alongside or maintain professional relationships with psychotherapists, social workers, psychiatrists, family physicians, occupational therapists, counsellors, and other regulated healthcare professionals.
 
Clear agreements can help define:

• Professional relationships

• Use of shared clinic space

• Administrative responsibilities

• Shared resources and technology

• Client information responsibilities

• Privacy and confidentiality obligations

• Billing arrangements

• Cost sharing

• Supervision arrangements

• Departure and termination procedures
   

These considerations can become particularly important in multidisciplinary mental health clinics where several professionals provide services through the same practice while maintaining separate professional responsibilities.
 
Practice Sales, Purchases & Client Records
Buying or selling a psychology practice can involve corporate, contractual, operational, privacy, and client record considerations.

Particular attention should be given to the custody, control, storage, accessibility, and transfer of client records when ownership changes or a practitioner leaves or closes a practice.

Legal support may include:

• Asset purchase agreements

• Share purchase agreements

• Due diligence

• Lease assignments

• Employee and contractor transitions

• Client record arrangements

• Restrictive covenants

• Transition service arrangements
   

Practice Growth & Long Term Planning
Whether you are opening your first practice, incorporating, bringing on another psychologist or mental health professional, building a multidisciplinary clinic, moving into a larger location, expanding virtual services, or growing your team, proactive legal planning can help ensure that your corporate structure and agreements continue to support the practice as it develops.

How We Support Psychologists