Independent Contractor — Ontario Employment Law

P. v. Zenova Group PLC

P. v. Zenova: Employment Status & Jurisdiction Appeal

This is an appeal from a motion judge's decision regarding employment status and jurisdiction. The Court of Appeal found that the appellant was an employee under the Employment Standards Act, 2000, rendering the forum selection clause void, and established that Ontario had jurisdiction over the dispute.

ITCAD Tech Inc. v. P. et. al.

Employment: Punitive Damages & Non-Compete Enforceability

This is an appeal and cross-appeal decision from the Divisional Court concerning an employment dispute involving the withholding of earned compensation and the enforceability of a restrictive covenant. The court addressed whether the employer's conduct met the threshold for punitive damages under Whiten and found the 12-month non-competition covenant unenforceable as it was used to circumvent the loss of vendor status. The appeal and cross-appeal regarding punitive damages were dismissed.

P. v. ITCAD Tech Inc.

Independent Contractor Non-Compete & Punitive Damages

This case addresses whether the plaintiff was an employee or independent contractor and the enforceability of a non-competition clause in their agreement. The court upheld the independent contractor relationship and found the 12-month non-compete restriction reasonable. Damages for breach of the non-compete were awarded, along with punitive damages for the withholding of funds.

D. v. T.E.S. Contract Services Inc.

Worker Misclassification: Class Certification Denied

This is an interlocutory decision on a motion for class action certification involving allegations of worker misclassification. The court denied certification, finding no systemic commonality to determine employment status on a class-wide basis and requiring individual trials.

Monterosso v. Metro Freightliner Hamilton Inc.

This is an appeal to the Court of Appeal from a trial judge's decision regarding the early termination of an independent contractor. The employer engaged the worker on a 72-month fixed-term contract but terminated his services without cause with 65 months remaining. The trial judge awarded the worker $552,500 plus HST for the balance of the term and held that he was not required to mitigate his damages. The Court of Appeal decided that the trial judge erred in law, clarifying that independent contractors on fixed-term contracts do have a duty to mitigate. However, because the employer failed to prove that the worker did not take reasonable steps to find new work, the Court of Appeal dismissed the appeal and upheld the $552,500 award.

G. v. Knights of Columbus

G. v. Knights Columbus: Arbitration & Employment Status

This is an appeal to the Court of Appeal from a motion judge's decision dismissing a motion to stay a wrongful dismissal action in favour of arbitration. The employee worked as a field agent selling insurance products for the employer. The motion judge dismissed the employer's motion, finding that the updated contracts containing the arbitration clauses were invalid because the employee received no fresh consideration for signing them. The Court of Appeal agreed and dismissed the appeal, holding that the employer failed to provide fresh consideration for the restrictive new terms. The court also clarified that the employee's ultimate status as an employee or independent contractor remains to be decided at trial.

C. v. HomeLife Response Realty Inc.

Independent Contractor: Conditional Offer & Contract Validity

This is an appeal from a Small Claims Court decision regarding a dispute between a real estate salesperson and their brokerage over commissions and the validity of their independent contractor agreement. The Divisional Court upheld the Deputy Judge's dismissal of the claim, finding that the conditional offer did not create a binding contract and that the independent contractor agreement was enforceable. The appeal also addressed issues of judicial bias and costs, all of which were resolved in favor of the respondent.

G. v. Knights of Columbus

Employment Contract: Arbitration Clause Invalid for Lack of Consideration

This interlocutory proceeding determined the validity of arbitration clauses in employment contracts where the plaintiff alleged lack of consideration for subsequent agreements. The court applied the Sagaz test to classify the plaintiff as an employee and found the arbitration agreements invalid due to insufficient consideration, thereby refusing to stay the wrongful dismissal action in favour of arbitration.

Heller v. Uber Technologies Inc.

Heller v. Uber: Worker Classification Class Action

This is a class proceeding certification motion addressing whether Uber drivers are employees or independent contractors. The court certified a common issue regarding worker classification but declined to certify an additional issue concerning the validity of a class action waiver in Uber's service agreements, finding no pleaded cause of action.

S.I. Systems Partnership v. G.

Independent Contractor Restrictive Covenant Claim Dismissed

This is an appeal to the Court of Appeal from a trial judge's decision regarding a breach of restrictive covenants. The plaintiff company sued two independent contractors for allegedly breaching their contracts. The trial judge dismissed the claim, finding the covenants were not brought to the contractors' attention, were unenforceable, and the plaintiff failed to prove damages. The Court of Appeal dismissed the appeal because the plaintiff did not appeal the finding concerning damages, leaving no basis to set aside the trial judge's order.

Heller v. Uber Technologies Inc.

Uber Worker Classification: Class Action Certification

This is a certification motion in a class action lawsuit challenging the employment classification of workers using Uber's apps. The court addressed whether the putative class members were employees, independent contractors, or service providers under the Employment Standards Act, 2000, applying criteria such as control and economic dependency. Certification was granted for breach of contract and statutory claims, while claims for unjust enrichment and negligence were denied.

R. v. Approval Team Inc.

Class Action: Employee Misclassification Certification

This is a certification motion in a class action lawsuit where the court determined whether the proposed action satisfied the statutory test for certification under the Class Proceedings Act, 1992. The central issue was the misclassification of salespersons and sales managers as independent contractors rather than employees, raising common issues regarding entitlement to minimum benefits under the Employment Standards Act, 2000. The court granted certification for the misclassification claim but excluded punitive damages due to a lack of sufficient evidence.

W. v. 2016169 Ontario Inc.

Class Action: Teacher Misclassification Settlement

This is a certification and settlement approval motion in a class action involving teachers who were misclassified as independent contractors. The court addressed whether the proposed settlement was fair and reasonable, approved class counsel fees and a representative plaintiff honorarium, and ordered the discontinuance of claims for online-only teachers due to lack of evidence and individualized issues.

A. v. S.

Midwife Contract: Expiration vs Termination & Restraint of Trade

This case concerns the interpretation of a fixed-term midwifery practice agreement, focusing on whether its expiration triggers termination obligations and whether a clause requiring the withdrawal of hospital privileges constitutes an unreasonable restraint of trade. The court applied the contra proferentem rule to resolve ambiguities in favor of the midwife, considering the power imbalance and the non-negotiable nature of the agreement. The court determined that the expiration did not constitute termination under the agreement and that the privilege withdrawal clause was not a restraint of trade.

M. v. Information Systems Architects Inc.

Fixed-Term Independent Contractor - No Duty to Mitigate

This is an appeal to the Court of Appeal from a motion judge's decision granting summary judgment to an independent contractor. The contractor signed a fixed-term contract but was terminated after one month due to a dated criminal record he had previously disclosed. The motion judge found the employer breached its duty of good faith and awarded damages for the unexpired term with no duty to mitigate. The Court of Appeal dismissed the appeal, holding that the duty of good faith applied and that the principle of no duty to mitigate for fixed-term contracts applies to independent contractors in these circumstances.

S. v. Messengers International

S. v. Messengers International: Independent Contractor Appeal

This is an appeal to the Divisional Court from a trial decision regarding wrongful dismissal and employment status. The appellant argued he was an employee entitled to damages for wrongful dismissal and vacation pay, but the trial judge found he was an independent contractor and had abandoned his job. The appeal was dismissed, upholding the findings that the appellant was an independent contractor and had abandoned his employment.

S. v. Deloitte Management Services LP

Class Action Certification: Employee Status Dispute

This is a certification motion under the Class Proceedings Act, 1992, regarding a proposed class action against Deloitte Management Services LP. The central issue is whether document reviewers are employees or independent contractors under the Employment Standards Act, 2000. The court granted certification, finding that the proposed class satisfied statutory criteria, including a valid cause of action, common issues, and an adequate representative plaintiff.

946900 Ontario Limited v. T.

Judicial Review: Employee vs Independent Contractor Under ESA

This is a judicial review application concerning the Ontario Labour Relations Board's determination of whether the applicant was an employee or independent contractor under the Employment Standards Act, 2000. The Divisional Court dismissed the application, finding no merit and applying deference to the Board's expertise. Additionally, the court dismissed a procedural motion to set aside a Registrar's dismissal for delay, finding no reasonable explanation for the lengthy delay in perfecting the application.

F. v. 6007325 Canada Inc.

Independent Contractor Classification Appeal Dismissed

This is an appeal to the Divisional Court regarding the classification of a worker as an independent contractor versus an employee. The appellant argued that the trial judge erred in applying the legal test from McKee v. Reid’s Heritage Homes Ltd. and in considering factors such as economic dependency, exclusivity, and permanency. The Divisional Court dismissed the appeal, upholding the trial judge's findings as reasonable and supported by evidence.

M. v. Information Systems Architects Inc.

Fixed-Term Contract Termination: Unenforceable Clause

This case addresses the enforceability of a termination provision in a fixed-term independent consulting agreement where the plaintiff was terminated after a client requested a replacement. The court found the termination clause unenforceable due to vagueness, inconsistency, and lack of clarity, interpreting it against the drafter using contra proferentem principles. Consequently, the plaintiff was awarded damages for the balance of the fixed-term contract without an obligation to mitigate.