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British Columbia Employer Advisor Keeping Employers Posted on Developments in Labour and Employment Law

Category Archives: Independent Contractors

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Dependent contractor receives 12 months pay in lieu of notice

Posted in Best Practices, Employer Obligations, Independent Contractors, Termination

The recent Supreme Court decision of Glimhagen v. GWR Resources Inc., 2017 BCSC 761, illustrates how an independent contractor can become a dependent contractor – an intermediate category on the spectrum between employee and independent contractor – as the relationship between contractor and company evolves, as well as the risk a company faces if it fails to address such changes in the contract for service, particularly in connection with contractual termination provisions.


Lars Glimhagen (“Glimhagen”) began providing services to GWR Resources Inc. as an independent contractor in 1989. For a flat monthly fee, Glimhagen provided GWR Resources with … Continue Reading

“Control and Dependency Define the Essence of Employment”, SCC Rules

Focus is on substance, not form

Posted in Age, Discrimination, Human Rights, Independent Contractors, Litigation

The Supreme Court of Canada released a highly-anticipated decision for professional partnerships, employers and employees today in McCormick v Fasken Martineau DuMoulin LLP.   We commented previously on the facts of the case and the history of proceedings to the British Columbia Court of Appeal here.

In short, McCormick, a partner at a large law firm, claimed that the mandatory retirement provision in the partnership agreement was discriminatory and contravened the Human Rights Code.  The case was eventually heard by the British Columbia Court of Appeal, which concluded that McCormick could not be both a partner and an … Continue Reading

Employee or Independent Contractor?

The Best Intentions May Mean Nothing

Posted in Employee Obligations, Independent Contractors

How can you be sure the independent contractor you have retained will not be considered an employee?  In a post last year we outlined the importance of the distinction, the consequences if you get it wrong, and the four tests that are typically applied.  We concluded the four tests boiled down to this question:  Is the person in business for himself?

A recent decision of the Federal Court of Appeal, 1392644 Ontario Inc. O/A Connor Homes v. The Minister of National Revenue, confirms that the central question is:

whether the person is performing the services as his own business, Continue Reading