Has The Landscape Changed For Fixed-term Independent Contractors?

In a recent Ontario Court of Appeal decision, the Court addressed mitigation obligations that apply to independent contractors when their fixed-term contracts are terminated prior to the end of the term. The reasoning in this decision will be of particular interest to both employers and independent contractors moving forward.

In Monterosso v. Metro Freightliner Hamilton Inc., the Appellants, Metro Freightliner Hamilton Inc. ("Metro"), had engaged Monterosso as an independent contractor in March 2017, to provide services for a fixed term of 72 months. Metro terminated Monterosso's contact – without just cause – approximately seven months into the term. Monterosso sued Metro for the 65-month period that remained in the fixed-term contract.