What is the difference between a dependent contractor and an employee?

British Columbia, Canada


The following excerpt is from Pasche v MDE Enterprises Ltd., 2018 BCSC 701 (CanLII):

Justice Rogers recently summarized the law on dependent contractor relationships in Glimhagen v. GWR Resources Inc., 2017 BCSC 761 [Glimhagen] at para. 44: As a general proposition, a person on an employer’s payroll and for whom the employer makes conventional statutory deductions from his pay will be considered to be an employee. If his contract does not provide otherwise, that person is entitled to reasonable notice of termination of his employment. An independent contractor, on the other hand, is not an employee. Between those two states lies a construct of the common law: the dependent contractor. The dependent contractor is not on payroll, but in most other ways operates and is treated as an employee. A dependent contractor is entitled to reasonable notice of termination of his contract.

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