Employment and Non-employment Work Relationships

AuthorPaul Wearing
Employment and Non-employment
Work Relationships
What You Should Know
There are three dierent possible service contracts for the provision of
work, but only one creates a pure employer-employee relationship:
1. Contract for service (independent contractor)
2. Contract of service (employee)
3. Hybrid of the contract for service and contract of service (intermedi-
ate agent or dependent contractor)
Sorting out or distinguishing between the three t ypes of contract is
not predictable. However, it matters to employers because if the person
is found to be an employee or dependent contractor, the employer will
face potential liability for termination compensation and also vicarious
liability for any torts (civil wrongs) committed by that person.
In the context of employers and employees, other situations that call for
an examination of the service relationship to determine whether it is one
of employment or contract for service arise in union certif‌ication appli-
cations before the Ontario Labour Relations Board as well as in workers’
compensation claims.

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