Understanding your work status in Ontario is crucial — it determines your rights, benefits, and severance pay. Many workers believe they are independent contractors, but under Ontario law, some are actually dependent contractors — a category that sits between employees and independent contractors.

What Is a Dependent Contractor?

A dependent contractor is someone who technically works as a contractor but relies heavily on one company for most (or all) of their income. While not considered a full employee, they are economically dependent on the business they serve.

In Ontario, dependent contractors are legally recognized under the common law (court decisions) and are entitled to certain employee-like protections — especially reasonable notice or severance pay when their contract ends.

Dependent Contractor Definition in Ontario

In simple terms, a dependent contractor:

• Works independently but is tied closely to one company
• Depends on that company for the majority of their income
• May wear company branding or represent the company publicly
• Often works long-term for the same business without the flexibility of a true contractor

Dependent Contractor vs. Independent Contractor

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Factor	Dependent Contractor	Independent Contractor
Income Source	Relies on one main client	Has multiple clients
Control & Supervision	Company directs much of the work	Sets their own schedule and methods
Integration	Acts as part of the company’s business	Operates a distinct, separate business

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