Chapter 4: What is Employment (And Why Does It Matter)?

  • Introduction to Employment Status

    • Case study of Samir, a taxi driver who suffered a violent attack.
    • Denied workers' compensation benefits due to being classified as a self-employed independent contractor.
    • The distinction between employee and independent contractor is legally significant in Canada.

  • Understanding Employment Status in Canadian Law

    • Employees are covered by various employment laws; independent contractors are not.
    • Independent contractors defined as small, one-person businesses.
    • The classification impacts the application of laws and policies, making it crucial in labor law.

  • Defining Employee vs. Independent Contractor

    • Common initial definitions are often inadequate.
    • Courts developed tests to differentiate between employees and independent contractors:
    • Control Test: Focus on the level of control the employer has over the worker.
    • Fourfold Test (Montreal Locomotive Case): Considers control, ownership of tools, chance of profit, and risk of loss.

  • Application of Fourfold Test

    • In Samir's case, evidence showed he was integral to Blue Line Taxi's business.
    • The tribunal found extensive control by the employer, thus ruling Samir as an employee.

  • Evolution of Tests for Employment Status

    • Supreme Court's clarification in Sagas Industries (2001):
    • Central question of whether the worker is in business for themselves.
    • Control, equipment provided, financial risk, and profit opportunity are key factors.
    • Current test involves identifying whether the person resembles an employee or entrepreneur.

  • Practical Application: Scorecard Approach

    • Clients provide information about their work arrangements based on various factors (control, supervision, independence, financial involvement).
    • Example with Braden vs. La-Z-Boy:
    • Braden's employment status disputed; he worked exclusively for one company and thus resembled an employee despite being labeled as an independent contractor.

  • Dependent Contractors

    • A third category emerged, termed dependent contractors.
    • They exhibit independence but are economically vulnerable and dependent on a single source of employment.
    • Courts evaluate economic dependence alongside traditional tests to find eligibility for protections similar to employees.

  • Employment Protections and Regulatory Frameworks

    • Many employment-related statutes exist across Canada, defining employee and independent contractor status to determine eligibility for various protections.
    • Potential regulatory gaps for gig workers, leading to debates on classification (e.g., Uber drivers).

  • Recent Legal Developments

    • Covered cases highlight the challenges gig workers face in obtaining employee status and subsequent benefits.
    • The case of Sharma vs. Uber: Court found couriers more like employees due to their dependence on the app despite being labeled independent contractors.

  • Conclusion: Future of Employment Classification

    • Current socio-economic trends show that many workers fall outside traditional employment classifications.
    • Debate arises on the necessity of maintaining distinctions between employees and independent contractors.
    • Suggestion to consider all workers as entitled to protections to reflect modern work arrangements and economic realities.