News
Franchising Disrupted: Insights on Worker Classification
Franchising in Canada is facing heightened scrutiny as courts and legislators increasingly question whether franchisees are truly independent contractors or, in some cases, hidden employees. Recent changes to the Canada Labour Code and new gig worker protections in Ontario and British Columbia highlight this shift, while high-profile cases in Quebec and a proposed class action against Shoppers Drug Mart in Manitoba underscore the risks for franchisors who maintain significant control over operations.
These developments could expose franchisors to greater liability and disrupt the long-standing principle that franchisees operate as independent business owners. It is important for both franchisees and franchisors to stay up to speed on recent case law and legislative amendments to ensure compliance.
In this Lexpert article, Jennifer Shayko, Lorenzo Lisi and Emily Chow examine how evolving legislation is reshaping obligations and control in business.
Click here to read the full article.