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I once promised to produce a monthly Q&A column but have been profoundly remiss. To make up for it, here is the first of two columns based on common questions asked online about employment law, along with the “right” answers.

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Can a contractor claim wrongful dismissal?

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The answer is: usually. First, there are very few actual independent contractors. The vast majority of workers who are referred to that way, even if they have a contract specifying that they are “independent contractors” and even if they invoice their “clients,” are employees at law. It is one of the biggest, possibly the biggest, boondoggle perpetrated on our taxation authorities because so-called “contractors” will deduct “expenses” and therefore pay less tax than is legally permitted.

But even a genuine contractor, if they are largely dependent upon one client, work for that client on a regular weekly basis, derive most of their income from that company and, to the outside world, look like an employee of that company, will be permitted by the court to sue for wrongful dismissal. There was one recent case where such an actual “dependent contractor” was awarded 26 months’ severance by an Ontario Court.

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It is only true independent contractors who can be fired without notice or severance.

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