Employee or independent contractor: understanding your status

The agreement’s label is a starting point

You may work regular hours for one organization under an “independent contractor” agreement. You may work part-time and be told employment standards do not apply. Neither description settles your legal status.

I start with how the relationship works. Who sets your schedule? Who decides how you do the work? Whose equipment do you use? Are you running your own business or working within someone else’s? Your agreement matters, but its label cannot answer every question.

Full-time and part-time describe hours, not separate legal status

A part-time worker can still be an employee. Fewer hours do not, by themselves, remove employment standards protections. Each entitlement has its own eligibility and calculation rules.

Minimum wage, vacation pay, public-holiday rules and termination obligations can apply to part-time work. Entitlements are not all reduced in the same proportion as your hours. The relevant rules and facts determine what applies.

The Employment Standards Act also has coverage rules and exemptions. Ontario’s employee-status guidance explains the distinction. Identify the working relationship and the applicable law. A weekly-hours label does not settle either question.

Independent contracting is a different relationship

A genuine independent contractor provides services through their own business. They may choose how to do the work and supply their own equipment. They may also take financial risks and have an opportunity to earn a business profit. Employees generally work within the employer’s organization and under its direction.

No single feature decides status. Sending invoices, registering a business or handling your own taxes is not conclusive. The whole arrangement needs assessment. A status decision for tax purposes may not settle the position under employment standards law.

Independent contractors generally do not receive the Employment Standards Act’s employee entitlements. But the label “contractor” does not automatically rule out notice rights or other protections. The contract needs assessment. Economic dependence may also be relevant in some cases.

Platform work has specific protections

Ontario’s Digital Platform Workers’ Rights Act covers specified ride-share, delivery and courier platform work. It is a separate framework from the Employment Standards Act. Its protections apply to covered workers regardless of employment status.

The Act took effect on July 1, 2025. Ontario’s platform-worker guidance explains pay information, payment periods and other rights. The Act does not cover everyone who finds work online. It also does not resolve every question about employee status.

Describe a normal working week

If your status is uncertain, write down how you work. Explain how tasks are assigned and whether you can refuse them. Note whether you can send a substitute or serve other clients. Record who supplies the tools.

Keep your agreement, any changes, payment records and relevant instructions. A clear factual account is more useful than the contract’s label alone. If the relationship is ending, seek advice before assuming that nothing is owed.

I share these articles for general information. Advice about your circumstances requires an individual assessment.