In Firepower Debt GP Inc. v. TheRedPin, Inc., 2019 ONCA 903 (“Firepower”), the Ontario Court of Appeal recently affirmed a decision of Justice Penny that commissions held by an insolvent real estate brokerage but owed to real estate salespersons were not held in trust and were thus subject to the security of the brokerage’s lenders.
Organizations are increasingly retaining the services of individual contractors rather than hiring employees in order to increase the organization’s flexibility and obtain special expertise on an as-needed basis. Historically, organizations have been subject to statutory and common law duties in relation to their employees which have not been applied when organizations retain independent contractors. Case law over the past ten years suggests that the classic distinction between employees and independent contractors is becoming blurred.
As the managing editor of The Human Resources Advisor and Human Resources PolicyPro, I am often asked for clarification on bonuses and employment/labour standards entitlements. Essentially, should bonuses be included in the calculation of vacation pay and public holiday pay entitlements, and why?