Terminating a contractor agreement can trigger legal redress and complications. To avoid disputes, both parties must understand what makes a contractor and an employee and their rights once terminated.
Contractor Rights and Employee Rights
You should have a clear idea of contractor and employee rights. In particular, contractors in cities like Toronto may not have the same rights as employees. Several employment laws protect employees, but the terms of a contractor’s agreement typically bind them. However, these terms should align with fair practices, especially when contractors can be referred to as dependent contractors.
In such cases, their termination rights might be much closer to those of employees. Getting the help of an employment lawyer in Toronto is often vital to avoid disputes and ensure clarity.
What’s the Difference Between Independent and Dependent Contractors?
Independent contractors operate independently without supervision and use their equipment to serve many clients. However, dependent contractors rely on a single entity for income and often work on long-term contracts.
The latter group may receive protections analogous to those afforded to employees. This distinction is essential because, on termination, a dependent contractor may have more rights than an independent contractor regarding reasonable notice and severance.
Do Contractors Have the Right to Reasonable Notice?
A legal requirement when terminating an employee is reasonable notice, but what about contractors? An independent contractor is generally only entitled to a contract.
Yet, sometimes, dependent contractors may even demand reasonable notice comparable to employees. If your contract doesn’t say how long you need to give to be fired, the court may decide how long is fair, considering how long you’ve been working.
How Does the Termination Notice for Dependent Contractors Compare to Employees?
The right to reasonable notice is not cut and dried for dependent contractors. When deciding on notice, courts often consider the length of service, the role’s importance, and the person’s dependence on the company.
Dependent contractors should be treated like employees under employment laws, such as notice periods. If you are in a dispute, you will be advised to seek advice from a Toronto employment lawyer to help clarify this matter and protect your interests.
Legal Basis
Canadian courts have recognised that contractors in dependent roles should receive more protection than independent contractors, especially in provinces such as Ontario. In case law, dependent contractors have been ruled in favour when there was no notice period in their agreements.
Calculation of Notice
Factors such as the duration of the contract and the role in question will determine the amount of reasonable notice. Notice to dependent contractors who have invested considerable time and effort may be equivalent to that given to employees.
Contractual Provisions
Notice and termination may be specified in the contracts, which the contractors should review. If courts are not given reasonable notice provisions, then courts may impose a notice period.
Inclusion of Contractor Period
When calculating notice periods, dependent contractors’ service time is considered from when they started work to when the contract ends. The start of this period is used to determine what is reasonable notice.
Finally, it is essential to know the differences between the roles of contractors. If you’re a contractor facing termination, consulting an employment lawyer will protect your rights and provide you with fair treatment. Get in touch with us today for professional advice.
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