Summary
In its recent decision Modern Cleaning Concept Inc. v
Comité paritaire de l'entretien d'édifices
publics de la région de Québec, the Supreme
Court of Canada (SCC) considered the distinction between
independent contractors and employees in a franchisor-franchisee
relationship. The majority of the SCC upheld the decision of the
Québec Court of Appeal (the "Court of
Appeal") and determined that, based on a
consideration of the entire relationship between the parties, the
franchisee in question was an employee. The SCC reiterated that the
words of the agreement alone are not determinative of the
relationship between the parties, and that the totality of the
relationship between the parties, as demonstrated by factors
including degree of control, ownership of tools, chance of profit
and risk of loss, must be considered.
