Employee or Independent Contractor: Understanding the difference
Determining whether you are an independent contractor or an employee is crucial, as it affects your rights and entitlements under employment law in Canada. Misclassification can lead to significant legal consequences for both employers and employees.
Learn more about independent contractors and their rights in your province:
WATCH: Employment lawyer Lior Samfiru discusses the misclassification of independent contractors and employees on an episode of the Employment Law Show.
Key differences between independent contractors and employees
- Employment rights: Employees have rights to vacation pay, statutory holidays, overtime pay, notice or severance pay upon termination, and employment insurance benefits. Independent contractors typically do not have these rights unless negotiated in their agreement.
- Control: If your employer sets your hours, work tasks, and supervises you, you are likely an employee.
- Ownership of tools: If the employer provides the tools and equipment for your work, you may be considered an employee.
- Profit and loss: If you are paid a set fee and do not incur expenses related to your work, you are likely to be considered an employee.
Severance pay for misclassified independent contractors
If you were terminated and classified as an independent contractor, you might be legally owed to full severance – as much as 24 months’ pay. Our employment lawyers in Ontario, Alberta and British Columbia can assess your situation to determine the true nature of your employment relationship, discover if you’ve been wrongfully dismissed, and secure your severance package. Contact us online or call 1-855-821-5900 to get the advice you need, the compensation you deserve.
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More about independent contractors
Explore some of our past blogs and episodes from the Employment Law Show related to independent contractors in Canada.Pocket Employment Lawyer
Before you call an employment lawyer, use the Pocket Employment Lawyer to determine if your employment law rights have been violated, and what you should do about it.
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