Self-employed worker or salaried employee? Getting it wrong can be costly

September 22, 2013 0 COMMENTS

By Myriam Robichaud

You’re about to hire an employee. But he has his own business and wants to be an independent contractor. That way, he’ll pay less tax. And it’s easy for you too — you will just have to pay his invoices and won’t have to include him in your employee headcount.

But wait. There can be significant consequences from incorrectly characterizing an employee as an independent contractor. Not only can the individual, at the end of the relationship, claim he was really an employee and entitled to significant severance benefits, the tax authorities can also come knocking, as was the case recently in Quebec. read more…

Even more mysteries of mitigation

January 20, 2013 0 COMMENTS

By Michel Bellemare

Last fall, we reported on the mysteries of mitigation. Those articles (“When do employees have a duty to mitigate termination claim?” and “More mysteries of mitigation”) reported on the Ontario Court of Appeal’s decision in Bowes v. Goss Power Products Ltd. that confirmed that the duty to mitigate doesn’t necessarily apply where employment contracts contain specific termination payments and the employment relationship is terminated without cause. read more…