Canada: Bill 148: new risks for misclassifying independent contractors as employees

There are many advantages to using independent contractors as part of a workforce. They often bring specialised expertise and tools, without the expectations of a long-term relationship. Further, they can parachute in and out of an organisation, setting their own schedules, taking on multiple projects and even bringing in their own employees to help. However, adjudicators, plaintiff lawyers and legislators are increasingly challenging employers that misclassify workers as independent contractors. Further, some adjudicators seem to have no problem with an individual reaping the benefits of being an independent contractor (typically, throughout the relationship) and later claiming to be an employee when it is advantageous to do so (typically, at the end of the relationship). A finding that a worker (or group of workers) has been misclassified can result in significant liability for an organisation.

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