Claims alleging the misclassification of workers as independent contractors rather than employees are widespread. Properly classifying a worker’s status is critical because it determines substantive legal rights. In addition to independent contractors and employees, in Canada, there is a hybrid category — dependent contractors. To be classified as a dependent contractor, the contractor must be “economically dependent” on a particular client. Dependent contractor status may be found even where a worker conducts business through a corporation and hires employees to assist in the performance of the work.

In a significant decision, Canadian Union of Postal Workers v. Foodora Inc., the Ontario Labour Relations Board (the Board) held that couriers delivering food on behalf of Foodora Inc., an app based food delivery company, were dependent contractors under the Labour Relations Act, 1995 (the Act) and thus have the right to unionize under the Act. This is one of the first decisions commenting on the status of workers in the gig economy.


Continue Reading Decision Delivers Dependent Contractor Status to Foodora Workers

In 2016, the Ontario Court of Appeal confirmed that dependent contractors are entitled to reasonable notice of termination. In a recent decision, Cormier v 1772887 Ontario Limited cob as St. Joseph Communications, (“Cormier“) the Ontario Superior Court of Justice extended this principle – commenting that service as an independent contractor should be considered in calculating the reasonable notice period in certain circumstances.
Continue Reading Independent Contractors Entitled to Reasonable Notice on Dismissal?

The Ontario Court of Appeal recently confirmed not only that dependent contractors are entitled to reasonable notice of termination, but that 26 months can be an appropriate notice period for long-service dependent contractors.
Continue Reading Dependent Contractors are Entitled to Reasonable Notice (and Potentially Lots of It)