Employees and Independent Contractors in Ontario: Key Differences

For clients seeking to expand in Ontario, understanding the differences between employees and independent contractors is crucial to ensuring that all legal obligations are satisfied for each type of worker. Employees’ rights are governed by Ontario’s Employment Standards Act, 2000. Independent contractors, however, are generally not covered by employment standards legislation. As a result, the statutory protections and minimum entitlements that apply to employees typically do not extend to independent contractors.

Aside from the protections and entitlements that differ, there are several notable differences in the relationship between a company and an employee and between a company and an independent contractor. These include, but are not limited to, the level of control the company maintains over working conditions, the exclusivity of the relationship and the financial risk taken by the worker or service provider.

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