For many start-up businesses, hiring an independent contract in Canada may require some assistance


Published by Paragon Legal Services on 13th May, 2021

If it is time to review your independent contractor relationship, then Paragon Legal Services can help with drafting and reviewing the agreement. We can help you understand your legal obligations as well as those of the other party when it comes to contracting for your business and signing an agreement.

Some workers may be classed as independent contractors yet they may be treated as employees. For this reason, they may also be required to sign different contractual agreements than those that are permanently employed in the company. 

Under the Fair Workplaces, Better Jobs Act, the government of Canada laid out how employees who fall under the classification of an independent contractor are to be treated. The federal government also married these requirements with the Employment Standards Act. 

Employers and companies may need to determine if their employee is an independent contractor or permanent employee in order to avoid liability in certain situations. This is where the help of a legal business professional should be obtained.

The reason for independent contractors is so that certain benefits of a permanent employee does not need to be issued including vacation pay, public holiday pay and overtime or severance benefits. Furthermore, independent contractors are not entitled to EI benefits or contributions. 

All employers may wish to have a contract with an employee whether they are permanent or an independent contractor. This is where Paragon Legal Services can assist in drafting and reviewing your independent contract. 

We can assist in determining the type of contract you need and the particular terms that should be stated. Independent contractors generally have to decide their own degree of control over their work, provide their own equipment and can hire their own subcontractors of helpers. 

A higher degree of responsibility generally lies with the independent contractor and their pay is based on the level of work that is done. Once more, upon independent contract review and drafting, a business professional or consultant can help draft these terms for the company. 

Independent contractors are also allowed to take on other jobs as they may come under less scrutiny from their employer for the provision of the service. They may also provide their services through a corporation who is the sole independent contractor that signs the agreement that would be drafted. 

If you need help with independent contract review and drafting, consult with Paragon Legal Services today and let us assist you with information on paperwork, liability and legal requirements.

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