Independent Contractor Or Employee: Canada Has a Third Classification

Most countries distinguish between various types of workers to determine application of labor and employment laws, liability, tax issues, and benefits. In addition to the classifications of employee and independent contractor. Canada recognizes a third classification: dependent contractor. Employers have different responsibilities to this intermediate classification than to independent contractors.

Based upon factors set forth by Canadian courts, in order to avoid liability employers may want to examine which is the proper classification for its workers and thus what legal obligations the employer owes to each such classification.

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By Kornfeld.