Navigating the Legal Distinction: Employee vs. Independent Contractor Relationships
When bringing people in to work with your business, the distinction between an “employee” and an “independent contractor” is not just an administrative detail; it carries significant legal implications, particularly in the realms of tax and employment law.
If a court, the Ministry of Labour, or the Canada Revenue Agency (CRA) finds a worker has been “mischaracterized” by being treated as an independent contractor when they are an employee, this can have serious and expensive implications.
As a huge swath of the Canadian workforce began working entirely remotely in 2020, employers increasingly considered employee requests to relocate. Some employees were looking to return to their home province or country to be with loved ones. Others were looking for a change of scenery and saw an opportunity to do so. Whatever the reason, offering employees the opportunity to take advantage of work-from-home arrangements by working from their chosen location can be a welcome perk. Some employers have even included guidelines for relocation as part of remote work policies.
