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ARTICLE · 21 JULY 2010

Ontario Report - The Dependent Contractor

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In the case of McKee v. Reid Heritage Homes, the Court of Appeal has now confirmed the intermediate category of the dependent contractor.

CanadaEmployment and HR
Fazilah Hussain
Fazilah Hussain
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In the case of McKee v. Reid Heritage Homes,1 the Court of Appeal has now confirmed the intermediate category of the dependent contractor. As a result, employers must now provide reasonable notice upon termination for both employees and dependent contractors. Employers, in order to be aware of the defining features between an employee, an independent contractor, and the new intermediary category of the dependent contractor, need to take a closer look at the essence of the relationships with workers.

McKee v. Reid Heritage Homes

In 1987, Reid Heritage Homes, a new home builder, entered into a handwritten contract with Elizabeth McKee agreeing that McKee would sell 69 homes for Reid, exclusively and in exchange for commission. The agreement included a termination provision providing that with 30 days' notice, either party could end the agreement.

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