Contractor or Employee? Explaining the Difference

Independent contractors are easier than employees right? Flexibility, less risk. So many employers create that contract AND unknowingly create legal, financial, and tax liabilities for themselves. Employment lawyer Brady Farmer, partner with Mathew Dinsdale Clarke, explains so much about this and why written contracts do not shield companies from liability when the daily working relationship looks like standard employment. You will learn the specific tests courts use to evaluate control, tools, and financial risk, plus how HR can safely transition misclassified workers. Key Takeaways: - Courts assess the full context of the relationship rather than relying on your contract. - When an someone is supervised, works fixed hours, uses company-supplied equipment and can't subcontract? Employee. - Misclassified contractors can retroactively claim overtime, holiday pay, vacation pay, and common law severance. You can fix the problem and Brady provides advice on how to go about in the video. 00:00 Intro 02:06 The key legal tests 06:17 The value of the contract 07:12 Why companies prefer contractors 09:16 The costs of getting it wrong 10:22 The potential tax liabilities 11:41 Fixing the problem 13:41 Liability limits and civil claims 15:08 More info Find Brady Website: https://matthewsdinsdale.com/ LinkedIn: https://www.linkedin.com/in/brady-farmer-077235108/ Firm Profile: https://matthewsdinsdale.com/bio/brady-farmer/ Find Andrea (me) Website: https://thehrhub.ca/ LinkedIn: https://www.linkedin.com/in/andrea-adams1/