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Difference between revisions of "Preliminary Matters for Employment Law (9:IV)"

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== D. Determine if the Worker is an Employee or Independent Contractor ==
== D. Determine if the Worker is an Employee or Independent Contractor ==


Most workers are considered “employees”, but some are considered “independent contractors”, and some fall under an intermediate category  sometimes referred to as “dependent contractors”. The distinction is important because independent contractors are generally not protected by the ''Employment Standards Act'' or the ''Human Rights Code'' for provincially regulated employees, or the ''Canada Labour Code'' or the ''Canada Human Rights Act'' for federally regulated employees.  
Most workers are considered “employees”, but some are considered “independent contractors”, and some fall under an intermediate category  sometimes referred to as “dependent contractors”.


Additionally, independent contractors may not be entitled to reasonable notice if they are dismissed, as many employees are, although the law on this can be complex (see below). Note that different statutes have different objectives and definitions, and as a result, “employee” and “independent contractor” may be interpreted differently under each statute. These interpretations are generally similar and sometimes follow the same tests; however, the ''ESA'' and particularly the ''HRC'' may define “employee” more broadly than the common law tests would – see [[{{PAGENAME}}#2. Employees v. Contractors - Employment Standards Act | Sections III.D.2]] and [[{{PAGENAME}}#3. Employees v. Contractors - Human Rights Code | III.D.3]], below. As a result, those who would be categorized as dependent or independent contractors under the common law may sometimes be categorized as employees under the ''HRC''.
The distinction is important because independent contractors are generally not protected by the ''Employment Standards Act'' or the ''Human Rights Code'' for provincially regulated employees, or the ''Canada Labour Code'' or the ''Canada Human Rights Act'' for federally regulated employees.
 
Additionally, independent contractors may not be entitled to reasonable notice if they are dismissed, as many employees are, although the law on this can be complex (see below).  
 
Note that different statutes have different objectives and definitions, and as a result, “employee” and “independent contractor” may be interpreted differently under each statute. These interpretations are generally similar and sometimes follow the same tests; however, the ''ESA'' and particularly the ''HRC'' may define “employee” more broadly than the common law tests would – see [[{{PAGENAME}}#2. Employees v. Contractors - Employment Standards Act | Sections III.D.2]] and [[{{PAGENAME}}#3. Employees v. Contractors - Human Rights Code | III.D.3]], below. As a result, those who would be categorized as dependent or independent contractors under the common law may sometimes be categorized as employees under the ''HRC''.


In ''McCormick v Fasken Martineau DuMoulin LLP'' (2014 SCC 39), the Supreme Court of Canada affirmed that the key to a determination of employment relationship is the degree of control and dependency.
In ''McCormick v Fasken Martineau DuMoulin LLP'' (2014 SCC 39), the Supreme Court of Canada affirmed that the key to a determination of employment relationship is the degree of control and dependency.
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