A dependent contractor in BC is a self-employed worker or business that relies heavily on one company for its work and income.
Dependent contractors aren’t employees, but they aren’t completely independent either. If a company ends a long-term, economically dependent relationship without enough notice, the contractor can be entitled to significant compensation.
Being called an independent contractor doesn’t automatically mean a company can end your contract without notice or compensation.
⚠️ Contract Terminated? If one company provided most or nearly all of your income, don’t sign a release or assume you’re owed nothing before checking your rights.
On This Page
- What Is a Dependent Contractor?
- How Do You Know?
- Dependent vs. Independent
- Severance & Notice Rights
- Contractor Agreements
- What to Do if Terminated
- Frequently Asked Questions
What Is a Dependent Contractor in BC?
A dependent contractor is someone who remains self-employed but has become economically dependent on one company or client.
For example, you might operate your own business, send invoices and pay your own taxes. However, if you work almost exclusively for the same company for years and rely on it for nearly all your income, you could be a dependent contractor.
Dependent contractors occupy a legal category between employees and genuinely independent businesses.
💡 Ask Yourself: If this company stopped giving you work tomorrow, would most of your business income disappear? If so, you could have dependent-contractor rights.
If you’re unsure whether you’re genuinely self-employed, see our Independent Contractor BC guide.
How Do You Know if You’re a Dependent Contractor in BC?
Economic dependence, exclusivity and the length of the business relationship are key factors.
You could be a dependent contractor if:
- You’ve worked for the same company for many years
- Most or nearly all your income comes from that company
- You work exclusively or almost exclusively for it
- Your relationship is ongoing rather than project-based
- Your business is closely tied to the company
- Replacing the lost work would be difficult
No single factor determines your status. The full working relationship must be examined.
Do You Have to Work Exclusively for One Company?
No. Complete exclusivity isn’t always required, but a high level of economic dependence is important.
Having occasional smaller clients doesn’t automatically eliminate dependent-contractor rights if one company still provides the overwhelming majority of your work and income.
There’s no automatic percentage of income that establishes dependent-contractor status.
Dependent Contractor vs. Independent Contractor in BC
The main difference is how economically dependent you are on one company.
| Dependent Contractor | Independent Contractor |
|---|---|
| Relies heavily on one company | Operates a genuinely independent business |
| Works exclusively or almost exclusively for one client | Can serve multiple clients independently |
| Losing one client removes most business income | Less dependent on any single client |
| Can be owed reasonable notice or compensation | Termination rights depend mainly on the agreement and applicable law |
Is a Dependent Contractor an Employee?
No. Dependent-contractor status doesn’t automatically give you employee rights under BC’s Employment Standards Act.
This means you aren’t automatically entitled to statutory vacation pay, overtime or employee termination pay simply because you’re a dependent contractor.
However, if the company actually controlled your work and treated you like an employee, you could have been misclassified as an independent contractor. That can give you broader employment rights.
Are Dependent Contractors Entitled to Severance Pay in BC?
Yes. Dependent contractors can be entitled to reasonable notice or compensation when a company ends the relationship without sufficient notice.
This compensation is often called severance, but dependent-contractor claims normally involve common-law reasonable notice rather than statutory termination pay under the Employment Standards Act.
How Much Notice or Compensation Can You Receive?
There’s no fixed formula. Your entitlement can depend on:
- How long the relationship lasted
- How exclusively you worked for the company
- How dependent your income was on that business
- The nature of your work
- How difficult it is to replace the lost business
- The termination terms in your agreement
For example: A self-employed consultant who works almost exclusively for one company for 10 years could be owed months of notice or compensation if the company suddenly ends the relationship.
Economically dependent contractors should have reasonable notice rights. The amount depends on the specific relationship, not a standard severance formula.
⚠️ Don’t Assume You’re Owed Nothing. Even if your agreement calls you an independent contractor, you could have notice or compensation rights. Your legal status and termination clause should be reviewed first.
What if You Were Actually an Employee?
If you were misclassified and are legally an employee, your termination rights can be different.
You can qualify for minimum protections under BC employment standards and additional common-law severance. For eligible non-unionized employees, full severance can reach up to 24 months’ pay.
See our Severance Pay BC guide.
What if Your Agreement Says You’re an Independent Contractor?
Signing an independent contractor agreement doesn’t automatically prevent you from being a dependent contractor.
Your relationship can change over time. You might start with several clients but gradually work almost exclusively for one company and become economically dependent on it.
The termination clause in your agreement can affect your notice or compensation rights. Both the contract and the actual working relationship matter.
Can You Be a Dependent Contractor if You’re Incorporated?
Yes. Operating through a corporation doesn’t automatically eliminate dependent-contractor rights.
The actual business relationship, including exclusivity, economic dependence, the length of the arrangement and the contract terms must be taken into account.
What Should You Do if Your Contractor Relationship Ends?
Determine your legal status before accepting that the company owes you nothing.
- Keep your contracts. Save your original agreement, amendments and termination notice.
- Document your income. Keep invoices and records showing how much of your business income came from the company.
- Record the relationship. Note how long you worked for the company and whether you served other clients.
- Don’t sign a release immediately. You could be giving up compensation rights.
- Get your status reviewed. An employment lawyer can assess whether you’re entitled to notice or compensation.
Dependent Contractor BC: Frequently Asked Questions
Can a Dependent Contractor Get Severance in BC?
Yes. A dependent contractor can be entitled to reasonable notice or compensation when a sufficiently dependent relationship ends without adequate notice.
Does Having Other Clients Mean You’re Not a Dependent Contractor?
No. Having some other clients doesn’t automatically prevent dependent-contractor status. It depends on the degree of exclusivity and economic dependence across the relationship.
Does Invoicing or Charging GST Make You an Independent Contractor?
No. Invoicing, charging GST and paying your own taxes don’t determine your legal status by themselves.
Can You Be a Dependent Contractor if You’re Incorporated?
Yes. Incorporation doesn’t automatically remove dependent-contractor rights. The actual relationship and agreement must be examined.
Does Working for One Company for Years Make You a Dependent Contractor?
Not automatically. A long-term relationship is important, especially when you work exclusively or almost exclusively for one company and rely on it for most of your income.
Find Out What You’re Owed in BC
Losing a long-term contractor relationship can mean losing most of your income overnight. Being called an independent contractor doesn’t automatically mean you’re owed nothing.
The BC employment lawyers at Samfiru Tumarkin LLP can review your agreement and working relationship to determine whether you’re a dependent contractor, a genuine independent contractor or a misclassified employee.
We can assess your notice and compensation rights and deal directly with the company when we take on your case.
Before you sign, always check first.
➡️ Get a Consultation or call 1-855-821-5900.