• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Presentation   hiring extra hands
 

Presentation hiring extra hands

on

  • 1,039 views

 

Statistics

Views

Total Views
1,039
Views on SlideShare
1,039
Embed Views
0

Actions

Likes
0
Downloads
2
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Presentation   hiring extra hands Presentation hiring extra hands Presentation Transcript

    • Hiring Extra Hands: How to Protect yourself
      RAYNA SHIENFIELD
      BARRISTER & SOLICITOR
    • Employees v. independent contractors
      Employer basics
      Contracts
      Discussion & questions
      WHAT’S IN STORE...
    • Employees v. Independent Contractors
    • Employer:
      Administrative perspective – easier to hire an independent contractor
      Liability - hiring an independent contractor limits employer’s liability
      Payroll taxes (income tax, EI, CPP, EHT)
      Employment Standards Act requirements  ie. payments on termination
      Do not have as much control over the worker – this could be a good or bad thing
      Worker
      Benefits to worker – entitles worker to deduct business expenses from gross income
      WHY DOES IT MATTER?
    • BUT…it’s not that easy
      The choice is not actually that of the employer
      Can put a contract describing an individual as an independent contractor into place but that does not necessarily mean s/he is, at law, an independent contractor
      MORE THAN JUST A NAME
    • Degree of control an employer has over determining method of work, hours
      Whether or not worker provides tools
      Whether worker is subject to employer’s policies
      Degree of financial risk taken by the worker / worker’s opportunity for profit
      Economic dependence of worker on one company
      Status is not affected by whether worker is paid directly to worker to a personal corporation
      DETERMINING FACTORS
    • CRA:
      Employer needs to pay unremitted tax plus unpaid CPP and EI, plus penalties & interest
      Must defend a challenge in the Tax Court of Canada
      Workplace Safety and Insurance:
      Investigation
      Fines
      Payment of outstanding premiums plus interest
      WHAT HAPPENS IF YOU CLASSIFY INCORRECTLY?
    • Wrongful dismissal claims
      Court will disregard termination provisions in an independent contractor agreement if the worker is found to be an employee
      liability for minimum notice under the Employment Standards Act, plus common law notice.
      Braiden v. La-Z-Boy Canada Ltd. (OCA) - sales rep was designated as an independent contractor by the company, but court found the designation invalid. There was a 60 day notice provision in the contract, but because of wrong classification that was invalid and 20 months of notice was awarded
      WHAT HAPPENS IF YOU CLASSIFY INCORRECTLY CONT…
    • EMPLOYER BASICS
    • One of the reasons people don’t want to have employees is because of the obligations under the Employment Standards Act  Only apply if worker is an employee and not an independent contractor
      Entitles worker to certain benefits and protections:
      Overtime pay
      Personal and parental leave
      Vacation pay
      Notice or pay in lieu of notice, severance
      EMPLOYMENT STANDARDS ACT OBLIGATIONS
    • Basically anyone
      Do not need to be a registered company
      You do need a Business Number with a payroll deductions account before employee starts work (through CRA)
      www.businessregistration.gc.ca
      WHO CAN HIRE AN EMPLOYEE?
    • Get employee’s social insurance number
      Have the employee fill out Form TD1 (Personal Tax Credits Return)
      Make sure you are compliant with the Ontario Employment Standards Act*
      There is a guide on the Ministry of Labour website for employers – print this out & read it!
      Lots of little things are regulated – breaks, overtime, vacation time, vacation pay
      MAIN THINGS TO REMEMBER
      *in some cases governed by Federal Canada Labour Code
    • CONTRACTS
    • Should be put into place for both employees and independent contractors
      Best to do BEFORE THE WORKER STARTS
      Important to classify the worker – BE REALISTIC
      If worker is an employee, can’t contract out of the Employment Standards Act minimums
      CONTRACTS – THE BASICS
    • WHAT GOES INTO A CONTRACT?
      Employee
      Independent Contractor
      Position
      Compensation
      Confidentiality
      Proprietary Rights
      Termination
      Severability
      Non-solicit
      Starting Date (and Ending Date if for a fixed term)
      Services
      Payment
      Confidentiality
      Proprietary rights
      Termination
      Severability
      Non-solicit
      Term
    • WHAT GOES INTO A CONTRACT?
      Employee
      Independent Contractor
      Vacation
      Hours of Work
      Non-compete
      Policies
      Duty of loyalty
      Relationship
      Expenses, taxes
      Tools
      Invoicing
      Non-assignment
      Indemnification
    • Sets expectations on things such as:
      Payment
      What / when / how the work is to be done
      Who is responsible for what
      Time off entitlements
      Protects parties in case of relationship breakdown:
      Termination provisions
      Solicitation of other workers
      Proprietary rights
      HOW DOES A CONTRACT PROTECT YOU?
    • QUESTIONS & DISCUSSION
      RAYNA SHIENFIELD
      WWW.EMPLOYMENTLAWSOLUTIONS.CA
      416-489-6660