employee vs independant contracts
employer has more control over the employees actions than an independant contractor
Equilibrium wage rate
A theoretical wage rate fixed through market forces in which the supply of labour equals the demand for labour
Dependent contractor
A worker whose status falls in between that of an employee and an independent contractor
This worker has more autonomy and independence than a typical employee, yet remains economically dependent on one customer for income and is subject to considerable control at the hands of that customer
Vicarious liability (tort law)
A legal rule under which an employer is liable for damage caused to a third party by one or more of its employees
which is the chief justification for creating a special regime for employment contracts different from that governing commercial contracts?
employees are vulnerable in a way that independent contractors are not
According to the test set out by the Supreme Court of Canada in Sagaz, what is the single-most important question to answer to determine employment status?
whose buisness is it?
Belton vs. Liberty Insurance
-Comissioned sales reps selling insurance
-Originally were independent contractors and their agreements allowed the company to change commission schedules with a 90 days’ notice
-Agents refused to sign a new agreement and were terminated, leading to a lawsuit for wrongful dismissal
What it means:
Sales reps are deemed employees, not independent contractors per their contracts.
Courts focus on exclusive or near-exclusive performance for the company.
It empowers employees to test new employment terms due to the employer’s unilateral decision.
Decision allows employees to “try out” an employers unilateral changes to their contract before deciding whether to accept the new terms or quit and sue for constructive dismissnal
Lack of a defined “reasonable time” for assessment creates uncertainty for employers.
Belton and Ontario Ltd. v. Sagaz Industries Canada Inc
Plaintiff selling fake sheepskin covers at Canadian Tire under exclusive agreement
-Sagaz wants an exclusive agreement instead
-Sagaz hires marketing firm, AIM
-AIM bribes Canadian Tire and gets exclusive agreement
Decision: Sagaz is not liable, AIM is independent contractor
Vicarious liability
Judge applied the “organization test”, which asked whether the work in question is “an integral part of the business” of the purported employer or only peripheral to that business, and whether the worker had been integrated into the business such through regular scheduling and required adherence to company rules and procedures
What are administrative tribunals?
They’re created by statute to offer an alternative system, though one not wholly dissimilar to the courts
What does the term “binding precedent” mean?
Lower courts must decide similar cases in the same way as higher courts in the same jurisdiction, whether they agree with the decision or not
What’s the purpose of distinguishing between independent & dependent contractors
To extend some benefits of the employment relationship to contractors who are economically subordinate
what is efficient breech
The term refers to a violation of employment standards law that occurs because it makes ‘good business sense to commit the infraction
For which of the following reasons have courts decided that employment contracts are distinguishable from commercial contracts?
Unlike employment contracts commercial contracts are generally not characterized by an inequality of bargaining power
In Ontario under what conditions can an employee-trainee (intern) be exempt from the provision of the Employment Standards Act?
Only under the condition that they’re ‘training’ as part of an approved educational program pursuant to a school board
Which of the following does the author claim is the main purpose of the collective bargaining regime?
To produce a countervailing force that could help equalize bargaining power between employers & workers
Which of the following best defines that “broader legal subsystem”?
Developments in legal fields other than work law that affect the development of work law
What main employment benefit(s) have dependent contractors been granted?
The right to reasonable notice of termination
To what does the term “efficient breach” refer?
The term refers to a violation of employment standards law that occurs because it makes ‘good business sense to commit the infraction
What’s been the Canadian government’s position regarding collective bargaining?
It’s been alternatively supportive & hostile since the inception of collective bargaining in the mid-1940s depending upon the particular government in power
To what does the “spillover effect” refer?
The effect that wages negotiated within the collective bargaining regime have on the wages of non-unionized employees
What’s the “equilibrium wage rate”?
The wage at which the supply of workers in a particular occupation equals the demand for workers for that particular occupation
What is a tort?
A wrongful act committed by one party resulting in harm to another
Which of the following is an outcome of the common law regime that helped prompt the creation of human rights legislation?
The common law didn’t protect people against discrimination in employment
What is the principle characteristic of a dependent contractor?
They work exclusively or almost exclusively for one company