Dependent Vs. Independent Contractors: Key Distinctions For Employers

This article was prepared with the assistance of summer law student Amy Fisher.

Contractors are generally viewed and treated as distinct entities from the engaging party, with independent contractors operating outside the structure, control and obligations that typically apply to employees. Unlike employees, contractors are presumed to run their own business, control their work and bear the associated risks and rewards. 

In practice, however, the classification of work relationships is not strictly binary. Instead, it exists on a spectrum ranging from pure employment, to dependent contractors and finally to independent contractors. The recent British Columbia Supreme Court (BCSC) decision in Ursic v. Country Lumber Ltd, 2025 BCSC 970, affirms this spectrum and highlights the differences and overlaps between dependent contractors and employees, as well as the potential obligations that arise when a contractor's role becomes highly dependent.