Why is it necessary to include contract workers in the Employment Standards Act?
Contract workers are included in the Employment Standards Act because employers often misclassify them as “independent contractors”. Indeed, contract workers themselves make the same error. Employers may realize significant liabilities because of this mistake and employees may lose the protection of the Act. It is very important to both parties that the true legal relationship in existence between them is properly classified. Contract workers are employees, not independent contractors. • What constitutes an employment relationship? The two most important elements in defining an employment relationship are economic dependency and the worker is under an obligation to perform duties (subordination) for another. If those two elements exist, and the relationship more closely resembles an employment relationship (rather than one independent contractor to another independent contractor, or principle to independent contractor relationship), it is an employment relationship. • Is adding contrac