Independent Contractors
Generally speaking, independent contractors are different than employees at law and not entitled to reasonable notice on termination or dismissal.
However, many people who think they are independent contractors are actually determined to be employees at law, therefore entitled to reasonable notice (or pay in lieu of notice) at termination.
Whether someone is an independent contractor or an employee is not based on just on whether they receive a T4 slip or bill a company independently for their work.
Both for tax purposes and for notice purposes, the courts have developed a control and chance of profit / risk of loss test.
Among the factors the courts consider in determining whether someone is employee or an independent contractor are:
- Who owns the tools of work (the computer, the building, etc.)?
- Does the independent contractor / employee:
a. set their own hours?
b. have many clients or principally one client?
3. Does the person have the chance of profit or risk of loss?
It is important to understand that even the existence of a written contract is not ultimately determinative of this issue. If a contract provides that a certain person is “an independent contractor”, that is not the end of the inquiry. You need to do the test.
When every attempt is made to provide helpful information in this website, you may not rely on the information above as legal advice.