What is the legal test for a dependent contractor?

British Columbia, Canada


The following excerpt is from Lauridsen v. Mortgage Executives, 2002 BCPC 131 (CanLII):

Not every person fits comfortably in either category. As a consequence, the notion of a dependent contractor, someone who does not possess all the indicia of employee status, but is economically dependent upon the employer, developed through case law. In these kinds of relationships, a requirement at law to give reasonable notice of an intention to quit may be implied depending on the intention of the parties. This type of quasi-independent contractor is referred to by Mr. Justice Drossos in Straume v. Point Grey Holdings Ltd., supra: Some indefinite contracts for service may therefore be terminated by either party at will without notice, but there may be instances of contracts of this type of an intermediate nature of a quasi-independent contractor where the obligation to terminate upon reasonable notice may be implied. Where each case falls will depend upon its particular factors and circumstances on determining the intention of the parties. As stated in Carter v. Bell & Sons, [1936] 2 D.L.R. ...: ... When the employer exercises no immediate control over the agent but leaves him to be his own master, in such cases it has always been held that the relationship of master and servant does not exist and the contract may be terminated by either party at will. There are many cases of an intermediate nature where the relationship of master and servant does not exist but where an agreement to terminate the arrangement upon reasonable notice may be implied. ... The mode of remuneration points to a mercantile agency pure and simple, but the duties to be performed indicate a relationship of a more permanent character. ...

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