I have often commented on the widespread misclassification of workers and, more specifically, the common practice of treating a worker as an Independent Contractor when they are really an employee in all but name.
In the recent decision of Cormier v. St. Joseph Communications, the Court of Appeal upheld a motion judge’s finding that when calculating reasonable notice periods, an employee is entitled to include the duration of time they were an dependent contractor. This case highlights the risks posed by evolving employment relationships and the importance of drafting legally defensible termination clauses.
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.