Areas of Practice

Contract Workers’ Rights In Ontario

Contract Workers: Know Your Rights

In the past decade, Ontario has experienced a notable decline in full-time, permanent employment opportunities. Concurrently, the number of temp agencies operating in the province has surged by 20%. This shift in employment practices has led many employers—both large and small—to increasingly favour contract workers. For them, this approach provides access to a pool of highly skilled and adaptable employees while allowing them to sidestep the expenses associated with full-time positions, such as vacation and overtime pay, disability benefits, and severance packages.

The Keenan Case

• The Keenan Case is regarded as a landmark ruling for contract worker rights in 2016.
• Lawrence and Marilyn Keenan were awarded $125,000 in their wrongful dismissal lawsuit against Canac Kitchens.
• This award marked the highest compensation ever given to contract workers who were terminated without notice or severance after 30 years of service.
• The case led to changes in legislation in Ontario, culminating in Bill 148.

Bill 148 and Your Rights

• Bill 148, passed in November 2017, significantly altered the landscape for contract workers in Ontario. Employers are now required to classify their workers as employees, dependent contractors, or independent contractors.
• Employers can no longer classify contract workers as “independent contractors” if they perform tasks identical to those of employees. The dependent contractor classification is now legally protected, granting qualified contract workers the same rights and entitlements as employees.

Contractor or Employee?

• Your classification as an independent contractor or employee is crucial.
• Misclassification can cost you significantly; for example, pizza delivery driver Juan Jose Lira Cervantes experienced financial losses due to being misclassified.

CRA & Your Taxes

• As a contract worker, you must understand who is responsible for remitting your income tax and source deductions to the CRA.
• The Federal Income Tax Act does not recognize dependent contractor status, which can lead to complications.
• If the CRA incorrectly assesses you as an independent contractor responsible for your own payroll taxes while you are a dependent contractor, it can create legal challenges. We have successfully assisted clients in navigating these situations.

We Level This Playing Field

We are committed to ensuring that contract workers receive the rights and protections they deserve. Our experienced team understands the complexities of employment law and is here to assist you in navigating these challenges. We provide guidance on employment classification, helping you determine whether you are classified as an employee or contractor so you can receive the benefits and protections you are entitled to.

We offer legal representation in negotiations or proceedings if you have been misclassified or wrongfully dismissed. Additionally, our experts can clarify your tax obligations to prevent any unfair penalties from the CRA. We are also dedicated to advocating for fair treatment and legislative reforms that protect the rights of contract workers. With our support, you can confidently approach your employment situation, knowing that knowledgeable advocates are on your side.