Employment and Non-employment Work Relationships

• Author: Paul Wearing
• Pages: 15-18

•15

CHAPTER THREE

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 types 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.