Independent Contractor Misclassification – Don’t Waste Time and Money

A group of people sitting around a table discussing Independent Contractor Misclassification.

Often an assumption exists that organizations can get around PEO/GEO services by simply declaring that a person is an Independent Contractor. However, the Canadian government is very strict on who can be classified as such. This can lead to questions about independent Contractor vs Employee qualifications. In order to prevent costly and time-consuming process from slowing down your business, keep reading to discover how to prevent Independent Contractor Misclassification.

When labelled as an ‘Independent Contractor’ the worker does not have benefit entitlements, vacation or statutory holiday pay, workers’ compensation/insurance coverage or any other protections that are afforded to employees. The worker is not restricted by borders and can work for organizations outside of their country of work. Although this relationship may seem like a no-brainer to international organizations seeking Canadian talent, it ultimately opens up both parties to unnecessary risk. If caught, the penalties are severe and costly for both the employee and the employer.

At this time, the Canadian government has stepped up its investigation into those who declare themselves to be Independent Contractors. A recent Ontario Ministry of Labour decision found that an Uber courier, who was classified as an independent contractor, did not in fact meet the criteria and was entitled to compensation associated with Employment Standards Act violations.

If you’re unsure of how to classify your workers, try our free Independent Contractor vs. Employee Quiz. Receive detailed results straight too your email in a matter of minutes. Still unsure? Please contact us today! Don’t risk misclassification, stay compliant.

Independent Contractor Misclassification



Also, visit our Canada HR Essentials website for all your Canadian HR needs. Providing comprehensive HR solutions since 1981.

Need support? Reach out to the team of professionals at The OI Group for help navigating Canadian employment relationships.