DISCLAIMER: This website is for information purposes and does not constitute legal advice.

The misclassification of

INDEPENDENT CONTRACTORS

Who is an employee?

 

You are an employee if you are party to a verbal or written contract of service with an employer, in exchange for the payment of wages, in which case the employer reserves the right to control and direct the manner and method by which you carry out your duties under the contract. 

The Labour Standards Act and Labour Standards Regulations set out the labour regulations for non-unionized employees. 

 

Who is Self-Employed?

 

You are self-employed if you are party to a verbal or written contract for service and you control how you conduct your work in exchange for payment. 

Unfortunately, the Labour Standards Act and Labour Standards Regulations do not apply to self-employed workers. 

This distinction is currently being pursued by some employers to avoid complying with provincial labour legislation and, in some cases, to pay less than minimum wage. 

In their publication, Employee or Self-employed?, Canada Revenue Agency provides detailed criteria to distinguish between an employee and someone who is self-employed (sometimes referred to as an “independent operator” or “independent contractor”).

If you believe you are an employee but your employer treats you as an independent contractor, we can advise and support you in fighting for your status and rights as an employee.