Independent Contractor Or Employee? Which Are You And Why It Matters?

In Ontario, the distinction between being classified as an independent contractor or an employee has significant implications for both the worker's entitlements and the employer's obligations under the law. Employers and workers may choose to enter into agreements where the worker provides services as an independent contractor for various reasons that can be mutually advantageous. From the employer's perspective, there are fewer regulations when it comes to contractors, and from a worker's perspective, they may benefit from more autonomy than if they were an employee.

However, there can be negative consequences to this characterisation, especially if the employer misclassifies an employee as an independent contractor. This blog post delves into the core differences between employees, independent contractors, and dependent contractors, and examines the legal tests used to define these working relationships.