Between employees and independent contractors exists a third, lesser known category of employment relationship: the dependent contractor. Unlike independent contractors, and subject to specific contractual termination provisions, dependent contractor relationships cannot generally be terminated without notice, or pay in lieu thereof.
common law entitlement
We are not long into 2019 and yet one thing already seems clear – the law concerning employment contract termination clauses will continue to be the focus of a great deal of litigation in Ontario. In just the past few months alone, new decisions from the Superior Court have helped to advance the law and provide further guidance to employers on proper drafting of termination clauses.
Recently, the Ontario Court of Appeal affirmed that the probationary clause, which provided, simply, “Probation...six months”, was enforceable, and that the employee was not entitled to anything more than the one week of pay in lieu of notice of dismissal pursuant to the Ontario Employment Standards Act, 2000 (“ESA”).