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ARTICLE · 24 MARCH 2016

Exceptional Notice Period Assessed For Dependent Contractors

Miller Thomson
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An employee's right to implied reasonable notice of termination in the absence of an express termination provision depends on various factors, such as age, length of service, and character of employment.

CanadaEmployment and HR
Lisa Goodfellow
Lisa Goodfellow
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An employee's right to implied reasonable notice of termination in the absence of an express termination provision depends on various factors, such as age, length of service, and character of employment.  Very few awards have exceeded 24 months.

The Ontario Court of Appeal recently upheld a lower court's decision finding that two long service, dependent contractors should have been provided 26 months of notice.  Keenan v Canac Kitchens Ltd., 2016 ONCA 79 sheds light on the factors that lead to a finding of a "dependent contractor" relationship, and the circumstances that led to this extraordinary result.

Background

The plaintiffs, Lawrence and Marilyn Keenan, worked for Canac Kitchens Ltd. ("Canac") for 32 and 25 years, respectively.  Initially, the plaintiffs were employed as foremen, supervising installation crews. In 1987, they were informed that they were to be converted to independent contractors. 

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