On June 20, 2024 Bill C-69 (Budget Implementation Act, 2024, No. 1) received royal assent, establishing a new presumption of employee status that shifts the burden of proof from workers to employers.
This significant change represents one of the most substantial reforms to Canadian labor law, with far-reaching implications for businesses across multiple sectors. Since implementation, this legislation has had significant impacts, making it crucial for HR professionals to understand the implications and necessary compliance measures.
Understanding the Legislative Changes
At the heart of this legislation is a fundamental shift in how worker classification is determined. Previously, workers often had to prove they were employees to access various protections and benefits. Now, the equation has been reversed.
According to Employment and Social Development Canada (ESDC), the law establishes that “all workers — including gig workers — are considered employees unless proven otherwise when their classification is contested.” This means independent contractor status is now the exception rather than the norm when employment status is questioned, with employers bearing the burden of proof.
The legislation makes two critical changes:
These changes apply specifically to...
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