Employee
Employee is a person who is hired by employer for wages. Some businesses prefer contractual relationships with workers to employment due to variety of reasons including but not limited to tax and administrative ones .
If you were offered a contract rather than employment and since then you declare yourself and submit the tax returns as an independent contractor, make sure that you are an independent contractor. One day it may be challenged in court that will look thoroughly into the substance of the relationships.
The test the courts use to determine:
1. Control over the process: setting up the time, schedule, tasks; reporting requirements; latitude in hiring others to have the work performed; ownership over tools and equipment.
2. Sharing the financial risks with the employer .
3. Integration into the business and to what extent.
4. Duration of the relationships.
5. Exclusivity. The number of clients.
Most of the employment relationships are governed by provincial legislation unless you work for the federal government in the places like banks, airlines, railways, shipping companies, television and radio.
In Ontario there are three main documents that regulate major areas of employment relationships:
The Employment Standard Act, 2000 sets out the minimum requirements and standards such as minimum wage, hours of work, overtime pay, vacation, termination etc.
Note: Some employee and employers are not covered of exempt from certain parts of the Act.
The Occupational Health and Safety Act watches over safety and is construed to prevent injuries at workplace .
The Human Rights Code protects individuals from discrimination at work.
An employee is a person who is hired by the employer for wages.