Transitioning from employee to contractor

A look at steps an employer can take to ensure a proper working relationship (Toughest HR Question)
By Brian Johnston
|Canadian HR Reporter|Last Updated: 08/08/2016

Question: If an employer wants to terminate a full-time employee and offer him a position as an independent contractor (IC), what must be done to ensure the relationship is that of a contractor and no longer that of an employee?

Answer: While there is no way to guarantee that an individual will be viewed at law as an independent contractor, there are steps the employer can take to increase the likelihood that such a relationship would be found.

1.Formally sever the employment relationship. For the employment relationship to properly end, it must be terminated with proper notice (or pay in lieu) and severance (if applicable).