Being classified as an independent contractor in British Columbia does not automatically mean you have no legal rights. Many workers labelled as contractors are, in practice, treated like employees — and BC law may still require notice, severance-style compensation, or damages when the relationship ends.
Misclassification is common across BC industries. If a company controls your work but calls you a contractor, that label alone does not determine your legal status.
This guide explains independent contractor rights in British Columbia, how misclassification works, and when contractors may be entitled to compensation after termination.
💡 For a national overview of how independent contractor status works, including classification tests used across Canada, see our guide on independent contractors in Canada.
What Is an Independent Contractor in British Columbia?
An independent contractor is a self-employed individual who provides services to a business under a contract, rather than as an employee.
In British Columbia, courts and tribunals look beyond the wording of the agreement and focus on the true nature of the working relationship. If the reality of the relationship resembles employment, a worker may be legally treated as an employee — even if paid by invoice or required to carry their own insurance.
👉 What matters most is how the work is performed, not what the contract calls you.
How BC Law Determines Contractor vs Employee Status
In British Columbia, courts consider multiple factors to determine whether a worker is truly an independent contractor, including:
- Who controls how, when, and where the work is done
- Whether the worker can refuse work
- Whether the worker can hire helpers or subcontractors
- Who provides tools, equipment, or vehicles
- Whether the worker takes on financial risk
- Whether the worker works mainly for one company
No single factor is decisive. The court looks at the overall relationship.
If a company exercises significant control over your work, you may be legally classified as an employee, regardless of the contract wording.
Misclassified Independent Contractors in British Columbia
Misclassification occurs when a business labels a worker as an independent contractor but treats them like an employee in practice.
This is a common issue in British Columbia, particularly in industries such as:
- Construction and skilled trades
- Film, television, and creative industries
- Technology and consulting
- Delivery, courier, and gig work
- Healthcare and support services
If you’ve been misclassified, BC law may entitle you to compensation when the relationship ends.
Termination and Compensation for Independent Contractors in BC
True independent contractors are generally excluded from many protections under BC’s Employment Standards Act (ESA).
However, if you are misclassified and legally considered an employee, you may be entitled to:
- Statutory notice or pay in lieu of notice under the ESA
- Common-law severance pay in BC, which is often significantly greater
- Damages for wrongful dismissal
Common-law notice in British Columbia depends on factors such as:
- Length of the working relationship
- Age of the worker
- Nature of the role
- Availability of similar work
Many misclassified contractors are wrongly told they are owed nothing when terminated without cause. That is often incorrect.
📲 Quick Starting Point: Use the Severance Pay Calculator to estimate how much you may be entitled to.
Do Independent Contractors Have Rights Under BC’s Employment Standards Act?
True independent contractors are generally excluded from the ESA.
However, if you are misclassified and function as an employee, you may still be entitled to ESA protections, including:
- Minimum notice of termination
- Overtime Pay
- Vacation pay
- Statutory holiday pay
- Minimum wage protections
The ESA does not allow employers to avoid obligations simply by calling someone a contractor.
Independent Contractor Agreements in British Columbia
Independent contractor agreements in BC are often drafted to protect the company, not the worker.
Common issues include:
- Agreements that mislabel employees as contractors
- Clauses denying notice or compensation
- Fixed-term arrangements that are repeatedly renewed
- Restrictive clauses limiting future work
⚠️ A contract does not override the law. Courts in British Columbia will set aside contractor agreements that do not reflect the true working relationship.
Signs You May Be an Employee — Not a Contractor
You may be misclassified if:
- The company sets your schedule
- You cannot refuse assignments
- You report to a manager or supervisor
- You work primarily for one business
- You use company tools or systems
- You are subject to discipline or performance management
If these factors apply, you should seek legal advice before accepting termination terms.
Independent Contractor vs Employee in British Columbia
| Topic | Independent Contractor | Employee |
|---|---|---|
| Control | Controls own work | Employer controls work |
| Taxes | Self-managed | Employer deducts taxes |
| Benefits | None | Eligible |
| Notice / compensation | No (unless misclassified) | Yes |
| ESA coverage | Generally excluded | Covered |
| Financial risk | Worker bears risk | Employer bears risk |
When to Speak to an Employment Lawyer in BC
You should speak with an employment lawyer in British Columbia if you:
- Were terminated and told you’re “not entitled to severance”
- Believe you were misclassified as a contractor
- Work mainly for one company
- Were pressured to sign a contractor agreement
- Are a dependent contractor
Your employer may owe you significant severance pay or compensation — up to 24 months.
✅ Samfiru Tumarkin LLP regularly represents misclassified contractors across BC and has helped thousands of non-unionized workers recover compensation they were wrongly denied.
📞 Call us at 1-855-821-5900, email help@employmentlawyer.ca, or use our online form to book your consultation.
⚠️ UNIONIZED? Contact your union immediately. By law,employment lawyers can’t represent unionized employees.