Employee vs. Independent Contractor: The Test Refined

The issue as to whether an individual is providing services as an independent contractor or performing services as an employee is a perennial one. The Federal Court of Appeal recently weighed in to reconcile competing tests on the proper way to determine whether an individual is a contractor or truly an employee.

The particular appeal involved three individuals who worked for Connor Homes, a licensed operator of foster homes and group homes for children with serious behavioural and developmental disorders, as area supervisors and/or child and youth workers. Each worked under a contract that stipulated she was an independent contractor "responsible for payment of all necessary remittances, including Canada Pension Plan, Employment Insurance and Provincial and Federal Taxes". Each was paid at a specified hourly rate or flat rate that depended on the service provided and provided those services in accordance with the homes' policies and procedures manual. The Canada