Current jobs related to Navigating The Legal Distinction: Employee Vs. Independent Contractor Relationships - Canada, CA - Mondaq® Ltd


  • Canada, CA Umbrella Legal Marketing Full time

    ℹ️ – ABOUT UMBRELLA LEGAL MARKETING -----------------------------------------------------------------------Umbrella Legal Marketing is a leading provider of comprehensive legal marketing services. We specialize in helping law firms attract and retain clients through effective marketing strategies. – POSITION...

  • Privacy Lawyer

    3 months ago


    Canada, CA Simplex Legal Full time

    Are you ready to practice law on your own terms in a flexible, innovative, and remote environment? We are, first and foremost, about people –our team and our clients. Our approach provides clients with practical, business-oriented advice and our lawyers with flexible opportunities for sophisticated work and career growth in a team-oriented environment.We...

  • Legal Assistant

    1 month ago


    Canada, CA The Mirillion Group Full time

    Commercial Litigation Legal AssistantOur client, is a premier, full-service law firm, nestled in the bustling core of Toronto’s financial district. They’ve secured many accolades over the years including being ranked in the Top 10 regional law firms in Ontario as well, have been celebrated, and recognized, for their commitment to community, diversity,...

  • Corporate Lawyer

    5 months ago


    Canada, CA Simplex Legal Full time

    Are you ready to practice law on your own terms in a flexible, innovative, and remote environment? We are, first and foremost, about people –our team and our clients. Our approach provides clients with practical, business-oriented advice and our lawyers with flexible opportunities for sophisticated work and career growth in a team-oriented environment. We...

  • Oil & Gas Lawyer

    5 months ago


    Canada, CA Simplex Legal Full time

    Are you ready to practice law on your own terms in a flexible, innovative, and remote environment? We are, first and foremost, about people –our team and our clients. Our approach provides clients with practical, business-oriented advice and our lawyers with flexible opportunities for sophisticated work and career growth in a team-oriented environment. If...


  • Canada, CA Skyfall Intelligence Agency Part time

    Company DescriptionSkyfall Intelligence Agency (SIA Inc.) is a platform that specializes in managing local marketing for businesses, making them more visible online. With a focus on optimizing business listings and improving digital reputations, SIA Inc. offers a comprehensive tool to attract more clients. The platform provides up-to-date information on over...

  • Senior Legal Assistant

    3 months ago


    Canada, CA Hays Full time

    DESCRIPTIONPerforming full legal administrative work of a responsible and confidential nature for one or more professionals for our Business Law department. This position receives some direction or guidance; most tasks and objectives are accomplished independently.RESPONSIBILITIESOrganize and expedite the flow of work through the Professional’s office,...


  • Canada, CA Insight Global Full time

    Required Skills & ExperienceExperience working in a fast-paced environment1+ years of Customer Service ExperienceBanking experienceBilingual in French and EnglishOrganized and great time management skillsCan handle stress wellAbility to navigate and support client requestsExperience with Microsoft OfficeAttention to detail and documentation supportNice to...


  • Canada, CA Delpath Full time

    Delpath Inc – A Canadian Consulting Services and Staffing Firm.About Us: Delpath Inc is a leading Consulting and Staffing Firm based in Canada. We specialize in providing top-notch consulting services and skilled professionals to our esteemed clients. With a commitment to excellence, we are seeking a dynamic HR Manager to join our team and play a pivotal...

  • Legal Counsel

    4 months ago


    Canada, CA Pantos Logistics Canada Inc. Full time

    Position SummaryThe Legal Counsel will assist with a variety of corporate and commercial matters, including drafting, reviewing and negotiating contracts, addressing employment law related matters, managing regulatory compliance issues, and assisting the legal team. The position will report directly to Senior Counsels in the legal team and involves a broad...


  • Canada, CA Experis Canada Full time

    As an Employee Central Payroll Specialist, you will make a difference in the way our employees work. You will leverage your technical acumen, creative problem-solving, and interpersonal skills to tackle various challenges and deliver operational and customer service excellence. You will be key to maintaining data integrity, functionality, and enhancements...


  • Canada, CA Voyageur Aviation Corp. Full time

    What is Voyageur Aviation Corp.?Unfamiliar with what we do? No worries, we've got you covered!At Voyageur Aviation Corp., we deliver innovative solutions to customers with unique aviation requirements. We are an integrated provider of specialized aviation services, including, advanced engineering and maintenance capabilities, part sales and logistics...


  • Canada, CA Navacord Full time

    COMPANY PERKSA very specialized team with a market-leading value propositionA truly collaborative environmentGreat learning and growth opportunitiesHybrid remote and flexible scheduleA competitive compensation package (Base Salary, Performance Bonus + commission on New Business)Full Benefits PackageProfit Sharing PlanProfessional Development Courses &...


  • Canada, CA Delpath Full time

    Senior Data Engineer- PythonHiring Manager: Senior Manager, Data ArchitectureLocation Address Hybrid (1 day per week at TorontoContract Duration: 9 months in total. Possibility of extension: YesBusiness group:The purpose of this role is to support the Director of Analytics at Scotiabank’s Global Contact Centers in developing advanced analytics (AI / ML)...

  • Contracts Manager

    4 weeks ago


    Canada, CA NGen Canada Full time

    NGen’s Mission NGen is the industry-led, non-profit organization leading Canada’s Global Innovation Cluster for Advanced Manufacturing and dedicated to building next generation manufacturing capabilities nationally. NGen’s goal is to strengthen the Canadian economy and create high-value jobs for Canadians while contributing solutions addressing some of...


  • Canada, CA Dhillon Immigration Law, Canadian Immigration Law Firm Full time

    Join Our Team as a Senior Canadian Immigration Lawyer at Dhillon Immigration Law!Dhillon Immigration Law is a boutique Canadian immigration law firm based in Seattle, Washington, U.S. We are dedicated to delivering tailored, strategic, and client-focused inbound Canadian immigration solutions. Known for our success in guiding corporate clients and...


  • Canada, CA Saxon Mechanical Ltd. Full time

    A great opportunity for a Project Manager to join Saxon Mechanical an established contractor in Abbotsford! Your new company:Looking to join a widely known, community-based contractor in Abbotsford who have a century of combined experience in the industry? Saxon Mechanical is known for providing custom mechanical solutions to residential and commercial...


  • Canada, CA Robert Half Full time

    We are in search of an Indigenous Engagement Specialist to remotely join our clients team located in Edmonton, Alberta. This role is central to our clients operations and communications, offering an opportunity to engage with First Nations, Inuit, and Métis-led organizations and partners. The position involves developing strategies for meaningful and...


  • Canada, CA Stonerise Construction Full time

    Stonerise Construction is a progressive developer/ builder with a proven track record of success and a substantial future ahead! Current projects located in Southwestern Ontario include residential high-rise, midrise, and mixed-use developments.At Stonerise Construction we build communities – not houses. You will gain such a sense of pride and...


  • Canada, CA JD Sports Canada Full time

    Title: Human Resources AdvisorLocation: TorontoSalary: 70-80kThe role: As the HR Advisor, you will partner with business leaders to develop and execute HR strategies focused on performance management, organizational effectiveness and employee relations. Along with the support from the HR Manager, this role will see you partnering and coaching Store Managers...

Navigating The Legal Distinction: Employee Vs. Independent Contractor Relationships

3 months ago


Canada, CA Mondaq® Ltd Full time
Navigating The Legal Distinction: Employee Vs. Independent Contractor Relationships

When bringing people in to work with your business, the distinction between an 'employee' and an 'independent contractor' is not just an administrative detail; it carries significant legal implications, particularly in the realms of tax and employment law.

The relationship between employers and employees is governed by not only employment contracts but also employment standards legislation and the common law. The law sees employees as the party with less power in the bargaining process and therefore imposes safeguards to protect the rights of employees. Employees are entitled to minimum employment standards such as minimum wage, vacation and vacation pay, overtime pay, notice of termination, etc.

In contrast, an independent contractor relationship is viewed as a business-to-business engagement and can provide employers with more flexibility in addressing their business needs. Independent contractors assume responsibility for their taxes and maintain control and discretion over their work. Notably, they are not covered by Employment Insurance (EI) or the Canada Pension Plan (CPP), and they are not afforded the same protections under employment laws. Independent contractors are not entitled to minimum employment standards, and the only terms governing the relationship are those recorded in the contract as negotiated by the parties. The contractor is considered to have equal bargaining power in the relationship with the employer.

Factors that will indicate that a worker is truly an independent contractor include that the worker:

  • has an existing business;
  • has control over their hours of work;
  • can perform work for other clients;
  • can hire their employees;
  • invoices the employer for their services rather than being paid through payroll;
  • performs their services with minimal supervision from the employer;
  • has the freedom to decline assignments from the employer;
  • has a chance of profit but also bears the risk of loss.

However, none of these factors are determinative on their own, and each situation needs to be assessed on a case-by-case basis.

Employers should ensure they are characterizing their workers correctly, as mischaracterization can carry substantial risks. Courts and the CRA will look beneath the surface of the relationship to determine whether the arrangement aligns more closely with an employment or contractor relationship.

Key Points to Consider:

  • Legal Protections: Employees benefit from statutory legal protections and minimum entitlements, while contractor relationships are governed by whatever terms are negotiated in the contract.
  • Tax Implications: Misclassifying a worker may result in unintended tax consequences, with employers potentially facing liabilities for unpaid taxes and benefits.
  • Employment standards: A misclassified worker may be entitled to retroactive payment for minimum employment standards, such as vacation pay, public holiday pay, and termination pay.
  • CRA Scrutiny: The CRA may look into contractor relationships that appear to mirror employment, to ensure proper remittance of payroll taxes.

Employers need to balance the different benefits and risks of working with independent contractors vs. employers. While working with independent contractors may seem less risky on its face and reduces liability for things like termination pay, benefits, and paid time off, there may be other significant risks if the worker isn't truly an independent contractor.

A critical takeaway for employers is that the label assigned to the relationship matters far less than the actual characteristics of the day-to-day working arrangement. Courts and the CRA look beyond semantics, focusing on the true nature of the relationship. While what the parties intended does matter, the tangible aspects of the working dynamic carry greater weight in the eyes of the law.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

#J-18808-Ljbffr