CONTRACTOR VS. EMPLOYEE

Independent contractors are not governed by the ESC. Various tests have been developed to determine whether an individual is an employee or an independent contractor.

In Connor Homes v. Canada (National Revenue) , 2013 FCA 85, the framework to determine legal status of a worker was outlined:

• Ascertaining the subjective intent of each party
• Ascertaining whether the objective reality sustains the subjective intent of the parties
• Considering factors for objective reality(Wiebe – Control test, ownership of tools, chance of profit and risk of loss and the integration into the business; Sagaz – Whether or not the individual is performing the services as his own business on his own account);
• Understand that subjective intent cannot trump the reality ascertained through objective facts

However, section 1(1)(l) of the ESC does recognize “dependent contractors” as individuals economically dependent and under an obl...