Independent contractor relationships

What are the limits when it comes to how many times a contract can be renewed?
By Colin Gibson
|Canadian HR Reporter|Last Updated: 10/03/2016

Question: Is there a limit to how many times a contract can be renewed before the relationship with an independent contractor changes? Is there language that can be included to maintain an independent contractor relationship indefinitely?

Answer: When an organization is designing a contract for personal services, it must determine whether the service provider is an employee or independent contractor. This distinction is important because while independent contractor relationships are generally subject only to the basic principles of contract law, employment relationships are governed by an extensive and complex common law and statutory legal framework. For example:

• The common law implies certain terms into many employment contracts, such as the obligation to provide reasonable notice of termination of employment.