Contractor became employee after 18 years

Independent consultant’s role with home builder changed from original 1987 contract: Court
By Jeffrey R. Smith
|Canadian Employment Law Today|Last Updated: 05/11/2010

A contractor relationship is different from an employer-employee relationship, but sometimes the two can merge over time. This can lead to a company being caught off-guard when it discovers it has an employee it didn’t know it had. An Ontario company that terminated its relationship with a sales representative under a contract signed 18 years earlier found this out when the courts found it was on the hook for pay in lieu of notice far greater than the terms of the original contract.