Your amazing business is growing and its time for you to hire! Exciting!
In case you haven't considered the difference between Independent Contractors and Employees, it's always a good idea to refresh your memory to ensure legal compliance and a healthy working relationship. Employment status ties directly to liabilities, benefits, along with financial and tax implications.
While the terms are often used interchangeably, there are significant differences between independent contractors and employees in the eyes of the law. In particular, the Employment Standards Act does not apply to independent contractors.
An individual may be considered an employee or an independent contractor when at least some of the following points describe the business relationship:
An independent contractor is a person that is in business for themselves
Usually provides services or can provide services to more than one company
An independent contractor can profit but can also lose money in the business relationship
Do not receive employee benefits from the employer
Can decide how, when or where the work is to be performed
Usually work for one employer
Usually work at the employer's place of business during hours set by the employer
Often receives employment benefits (i.e. health benefits)
Work under the control of the employer and completes tasks in the manner that the employer has requested
Receives net salary after employer has applied all requisite deductions (i.e. income tax)
Has the protection of work place safety and employment anti-discrimination laws
If you've read the article, and conducted your own research but still are unsure how to proceed, feel free to reach out! Our proven Employment Legal and Litigation talent brings proven experience, helping organizations like yours operate and grow.