How To Address Misclassification As An Independent Contractor

The problem that most workers experience in Canada is the tendency to be treated as independent contractors although they actually operate as employees. This is the so-called misclassification and it has severe implications on income security as well as rights in the workplace. Employers also misclassify their workers so as to escape paying benefits, overtime, and contributions to schemes like Employment Insurance and Canada Pension Plan. To employees, this may result in deprivation of legal protection and financial benefits.

Knowing how to recognize and solve misclassification is the key to defending your rights at the workplace. Employees who are contracted might not see that they are forfeiting rights by the Canadian employment law. Proactive measures to address this problem can go a long way in financial health and in fairness of the workplace.

Knowledge Of Employee And Contractor

In the law, the difference between employees and independent contractors lies in the true nature of the working relationship and not the name applied in a contract. Workers are typically controlled by their employer, on a schedule, on company equipment and as a part of the normal operations of the organization. On the other hand, independent contractors tend to be more autonomous, provide their own equipment, and are financially responsible for the work they do.

Misclassification occurs when the employer claims to have a worker as a contractor, but he retains the degree of control that would exist in an employer-employee relationship. This is possible in the construction industry, hospitality, delivery services, and technology. Employees in such positions might not even know they are entitled to vacation pay or even overtime, or even termination. The first step to solving the issue is to recognize what the relationship is all about.

Repercussions Of Misclassification

Loss of access to a host of statutory protections Being erroneously classified as a contractor is to be deprived of a host of statutory protections. Provincial or federal employment standards, such as minimum wages, vacation allowances, overtime compensation, and job-related leaves are the rights of employees. Independent contractors, on the other hand, are on their own to cover taxes, benefits and insurance and hence are left in a more exposed financial position.

Besides loss of benefits, there can be long term financial risks created due to the misclassification. Employment Insurance and the Canada Pension Plan are not applied to the contractors as it is to employees. This implies that once a worker who has been misclassified loses his or her job, he/she might be left with no income support. With time the amount of money invested in retirement and social benefits programs is also minimized and workers suffer.

Measures To Deal With Wrong Classification

When you believe that you are not in the right group, the first thing that you need to do is to reexamine your working relationship. Analysis on how much your employer controls your work, the tools and equipment you are using and the independence of making the decisions. Although the terms of your contract may declare that you are an independent contractor, the reality as to how the work is done is examined by the law.

Having examined your case, you can think about discussing the case with your employer. Not all misclassifications occur on purpose and sometimes the misclassification is the result of a wrongful understanding. In case the employer is not ready to make some corrections you can complain to your provincial employment standards office or in case of some disagreement in Canada Revenue Agency depending on the nature of the conflict. An employment lawyer in Vancouver or any other city is also able to offer professional advice on the strength of your case and how to go about it in the most effective manner.

Legal Remedies Available

Employees who can manage to demonstrate that they have been misclassified can be liable to compensation. This may involve unpaid wages, overtime payment, vacation payment and severance benefits. Moreover, employers might be asked to provide retroactive payments to government schemes like Employment insurance and Canada pension plan. This makes sure that the worker gets the benefits and protections that he or she should have gotten at the start of the relationship.

The legal remedies not only aid in the recovery of lost income, but also are able to hold the employers liable to their duties under the employment law. Seeking such remedies may also eliminate further misclassification at the workplace, since employers would tend to abide by the right legal standards when disputes are settled. Through action, employees help to make the employment system a fair and transparent one.

Significance Of Consulting

The employment law in Canada may be tricky and every case is different. Consultation with experts in the area of workplace rights is a good way to make sure that workers get the right information depending on their situation. An experienced employment lawyer can assist in determining whether a worker has a good case, and pay through the complaint procedure or compensation process.

To most employees, it is hard to be familiar with the legal landscape. The opinion of a skilled expert gives one the hope and assurance in the face of any employer who might be adamant about accepting misclassification. Making such a step in order to consult will show that one is being proactive about his or her rights and financial safety.

Conclusion

In Canada, a wrong classification as an independent contractor may cost workers great financial and legal implications. Knowing what distinguishes employees and contractors, what the dangers of misclassification are, and making informed choices in order to resolve the conflicts, the workers may defend their rights and be treated fairly at the workplace.

The issue of misclassification is not only the possibility to get the lost wages and benefits back but also concerns the long-term security and fairness. Employees can assert themselves against wrongful classification and protect all their rights under the Canadian employment law with the right attitude and, where need be, the guidance of their professional representatives.