Client Win: Ontario Contractor’s 9 Months’ Severance Upheld On Appeal

Samfiru Tumarkin LLP successfully defended nine months’ severance for an Ontario contractor whose former company argued that he was not owed that amount.

Mark Lefor spent approximately seven years working for Canada Suites, eventually becoming its General Manager. He typically worked more than 40 hours a week, was always on call and earned more than 90% of his income from the company. Yet when the relationship ended, Canada Suites treated him as an independent contractor and paid no severance.

Lefor challenged that decision and won. When the company appealed, Toronto employment lawyer Teilen Celentano defended his win. The Ontario Divisional Court dismissed the appeal and ordered Canada Suites to pay another $6,000 toward his legal costs.

The Company Argued That He Was An Independent Contractor

Canada Suites disputed the finding that Lefor depended on it enough to qualify for severance.

The company argued that the trial judge had used the wrong approach, overlooked evidence and misunderstood their agreement. It also said the trial had been unfair because certain tax forms were missing and it had not had a proper chance to challenge his income figures.

At stake was the compensation Lefor had already fought to secure. Our team had to defend the finding that the company could not simply end this working relationship without proper notice or pay.

More Than 90% Of His Income Came From Canada Suites

The court looked at how Lefor actually worked and earned his living.

His financial records covered more than three years leading up to his termination. Although he had income from several sources, more than 90% came from Canada Suites alone.

His workload helped explain why. Lefor testified that he typically worked more than 40 hours a week and was always on call, leaving him little opportunity to work for others.

Those details supported the finding that he was a dependent contractor: someone who is self-employed but relies heavily on one company for their livelihood.

He did not have to be an employee to be owed notice or compensation when the company ended his work. The appeal court found no basis to overturn that part of his win.

The Court Also Rejected The Unfair-Trial Argument

Canada Suites argued that the judge should not have accepted Lefor’s income evidence without specific tax forms.

But Lefor had shared the documents he planned to use before trial. The company could have requested the additional tax records earlier and had not done so. Its lawyer also had the opportunity to question Lefor at trial.

The appeal court found that the process had been fair. His financial records and testimony gave the trial judge enough evidence to decide how dependent he was on Canada Suites.

Our Team Defended His Win And Secured Appeal Costs

On March 20, 2026, the Ontario Divisional Court dismissed Canada Suites’ appeal. Lefor’s original award remained in place, and the company was ordered to pay an additional $6,000 toward the costs of the appeal.

Read the full court decision: Canada Suites Ltd. v. Lefor, 2026 ONSC 1591.

What This Means For You

• Being called a contractor does not automatically mean you get no severance. How you actually worked, and how much you relied on the company, can matter more than the label.
• Having some other clients does not automatically rule out a claim. Lefor had other income sources, but Canada Suites still provided more than 90% of his income.
• Your records can help tell the story. Keep your agreements, invoices, income records and messages showing your hours or availability. These can help establish the nature of your working relationship.
• Get advice before accepting a major pay cut or walking away. If a company wants to substantially change your compensation, our team can review the proposal and explain your options. Learn more about pay cuts in Ontario.

A Lesson For Employers

A contractor agreement does not settle every question about severance. Before ending a long-standing working relationship, consider how the person actually works and how dependent they are on your business. Our employment lawyers for employers can help assess those risks.

Another Ontario appeal win: Read how our team defended 17 months’ severance for a long-service salesperson.

Told You Get No Severance Because You’re A Contractor?

If you spent years working mainly for one company, losing that work can mean losing most of your income at once. Do not assume you are owed nothing because you submitted invoices or signed a contractor agreement.

Our Ontario employment lawyers can review your agreement, work history and income records to determine what the company may owe you. Depending on your circumstances, severance can be as much as 24 months’ pay.

Many severance disputes can be resolved without going to court. When a company fights a claim or appeals a decision, Lefor’s case shows how our team can help protect a hard-won result.

Contact Teilen Celentano or another member of the employment law team at Samfiru Tumarkin LLP to find out what you may be owed.