What is the case law on subordination between a company and its employees?

Canada (Federal), Canada

The following excerpt is from Canada (Attorney General) v. Acier Inoxydable Fafard Inc., 2002 FCA 214 (CanLII):

The relevant excerpts, found at paragraphs 4 to 7 of the decision on which her argument was based, are reproduced: In concluding that there was no relationship of subordination between the workers and the defendant, the trial judge does not appear to have taken into account the well-settled rule that a company has a separate legal personality from that of its shareholders and that consequently the workers were subject to the defendant's power of supervision. The question the trial judge should have asked was whether the company had the power to control the way the workers did their work, not whether the company actually exercised such control. The fact that the company did not exercise the control or that the workers did not feel subject to it in doing their work did not have the effect of removing, reducing or limiting the power the company had to intervene through its board of directors. We would add that the trial judge could not conclude there was no relationship of subordination between the defendant and the workers simply because they performed their daily duties independently and without supervision. The control exercised by a company over its senior employees is obviously less than that exercised over its subordinate employees. If the trial judge had recognized that the defendant had a separate legal personality, as he should have done, and analyzed the evidence in light of the applicable rules (Wiebe Door Services v. M.R.N., [1986] 3 C.S. 553), he would have had no choice but to conclude that a contract of service existed between the defendant and the workers.

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