An employer cannot rely on intention alone to define workers as independent contractors. That’s the lesson from a recent Federal Court of Appeal case in which an employer had attempted repeatedly to hire independent contractors, but could not satisfy the Canada Revenue Agency criteria. “Despite the stated intent of the parties to characterize their relationship as that of independent contractors, the facts of this case suggest otherwise,” the Court said. The employer had significant control over the workers’ work, and limited their financial risk and opportunity for profit to the extent that the relationship was closer to employer-employee than independent contractor.
This CRA External Interpretation document deals with whether a membership fee paid to an organization to assist the employer with labour relations is a taxable benefit to an employee. (In PDF)
One of the most important issues facing employers today is the management of employees of the baby boomer generation who are nearing the end of their careers. Organizations need to consider their succession plans, while respecting the rights of senior employees who do not want to retire at the age of 65. (In PDF)