Knowing something-the truth is that you are an independent contractor, or that you are not, that you are an employee in disguise-is more than a technical one. Your rights, benefits, tax liability and employment security can be greatly impacted by it. Misclassification is typical in Canada and much of the workforce discovers late enough that they, in fact, should have been regarded as employees throughout. The worse part of young women getting addicted to training is that it has warning signs and with it you know how to beat the predicament before it worsens.
The Nature of the Relationship
Another aspect that can greatly affect your actual status is the level of control your employer exercises on your work. In case you need to work certain hours, take detailed orders, or make periodic reports to a superior, then this shows that an employment relation exists instead of an independent contractor relation. Practicing contractors tend to design timetables and make their own plans on the most appropriate way to do the task.
The other point here is the amount of integration you have with this business. You might be an employee in case you engage in core functions which are vital in the operation of the company. In other words, a unit as a business entity that can not be operated without your position or when outsiders would see you as an extension of the business organization and not somebody in business to service this organization, then it is a major sign to be considered an employee.
Financial Considerations
Financial control is another area to examine carefully. The independent contractors tend to get a chance to make a profit or lose depending on their management of the work and expenditure. In case you do not invoice your services, bear your business expenses, and promote your services to other clients, it can be a hint that there can be a possibility that you are an employee.
Ownership of tools and equipment also matters. Genuine contractors provide and upkeep their own equipment which is required in the task. When your company supplies the equipment, software, or surroundings in which you work on a daily basis, this may spell out an employment relationship as opposed to an independent contract.
Taking Action
You should carefully record your working arrangements where you suspect that you have been misclassified. Keeping records of how many hours you have worked, a direction you have been given, or an individual that regulates the plans you have can be very considerable evidence in case of a query in the future. This is also reasonable to thoroughly go over your contract and see whether its terms are really representative of your every-day reality.
An employment lawyer Edmonton would provide assistance and advice to anyone in Alberta residing in the area to help you know whether your employment classification falls in the right category in Canadian legislation. A qualified employment lawyer can help you understand your legal options, whether that means negotiating with your employer, filing a complaint with the labour board, or seeking compensation for lost benefits.
Consequences of Misclassification
Being misclassified can have serious financial and legal consequences. In doing so, you can also forgo vacation pay, statutory holidays, overtime and other benefits to which employees are entitled under the employment standards legislation, in case you are incorrectly deemed a contractor. You also may not enjoy Employment Insurance and Canada Pension Plan contributions, a factor that will influence your wellbeing in future.
Moreover in case the Canada revenue agency comes to the opinion that it is you that ought not to have been treated as an employee your employer may have to pay back taxes, penalty, and interest. This may also result in claims on unpaid salary or severance where it may be important to consult an experienced employment lawyer to ensure that your rights are upheld.
Being incorrectly labeled as an independent contractor might not even be perceived as something dangerous, at least initially, when it is accompanied by the hope of comfort or even a little more salary. But in the long run it might end up costing you some important legal shields and monetary incentives that the employees are provided. It is important to be aware of the indicators of being misclassified and job security and know your rights in order to realize a real difference in the application of the same.
