Understanding of who you are
There are many different categories and sub-categories of workers in the area of employment law:
Employees Contractors
full-time employee independent
part-time employee dependent
temporary employee
casual employees
agency employees
Understanding what group an individual belongs to is important. Depending of the category you are in there is a different level of protection and entitlement to benefits.
Employee – is a person who is hired by employer for wages. Some businesses and the individuals prefer contractual relationships to employment due to variety of reasons including but not limited to tax benefits and administrative obligations.
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 whether an individual is an employee or independent contractor :
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.
Note: Dependent contractor is a worker that neither meet the strict criteria to be an employee nor an independent contractor.
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.