Worker loses $15,000 employee benefits claim

Quebec court rejects claim for overtime, vacation, vehicle reimbursement

Worker loses $15,000 employee benefits claim

A Quebec worker who refused to provide his Social Insurance Number to enable proper payroll processing cannot later claim he was entitled to employee benefits and protections, a provincial court has ruled.

The Jan. 13, 2026 decision underscores the limits of retroactive employment status claims.

Justice Louise Lévesque of the Court of Quebec rejected Laurent Picard's $15,000 claim for overtime, vacation, termination compensation, and vehicle expense reimbursement against Autos Rive-Sud SB, finding he failed to prove he was an employee rather than an independent contractor.

Employee or supplier?

Picard provided services to the automotive dealership from 2016 to December 2019, receiving variable payments, generally weekly, without source deductions. Payments came by cheque or cash, sometimes with invoices, sometimes without. The arrangement raised red flags for the company's accountant, but Picard's refusal to provide essential documentation prevented any change to employee status.

Rachel Bélanger, an independent accountant and consultant who worked for the business from 2007 to 2020, testified that she recommended Picard be paid as an employee. However, the recommendation was not followed due to Picard's refusal to provide his SIN, which she identified as an essential condition for issuing required tax slips at both federal and provincial levels.

The court found the accounting department treated Picard as a supplier rather than an employee throughout the relationship.

Burden of proof for payroll claim

In response to his claim, the court emphasized that Picard bore the burden of demonstrating an employment relationship existed. He needed to establish, through preponderance of evidence, that he was integrated into the business as an employee, particularly through the existence of a subordinate relationship, an imposed schedule, and salary remuneration.

Justice Lévesque found Picard's refusal to comply with basic employment “not insignificant,” adding “it demonstrates a conscious choice not to submit to the tax obligations associated with employee status.”

The court noted Picard continued receiving payment for several years while accepting this arrangement, making his later claims problematic.

Signed settlement agreement

Beyond the employment status issue, two additional factors doomed Picard's claim. He signed a settlement agreement on Dec. 10, 2019, accepting $2,000 and expressly waiving any legal action against Autos Rive-Sud. His allegation that he signed under duress lacked sufficient evidence.

The court also found Picard's financial claims unsubstantiated. He produced no timesheet, no precise record of hours worked, and no coherent breakdown to verify alleged overtime. Vehicle expense claims were based on rough estimates without reliable documentary evidence or contractual agreement.

"In these circumstances, Mr. Picard cannot now retroactively claim employee status, since he has consciously and repeatedly accepted – and even favoured – a relationship comparable to that of a self-employed worker," Justice Lévesque concluded, rejecting the claim with costs.

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