Fact Sheet
Independent ContractorsIndependent contractors are not covered under Manitoba’s employment standards. The laws for minimum wage, vacations, general holidays, and termination of employment, among other standards, do not apply to independent contractors. But some employees are mistakenly classified as independent contractors. It is important for employees to be correctly classified so that they receive proper wages and other entitlements provided under The Employment Standards Code. Employment Standards enforces payment of wages where an employee has been incorrectly classified as an independent contractor.
What are the differences between an employee and an independent contractor?Many factors may be used to distinguish an employee from an independent contractor. Each situation is unique and must be assessed based on the specific circumstances of the relationship between the person performing the work and the person who pays for the work. The Employee vs. Independent Contractor Chart at the end of the fact sheet identifies some common factors that are used by Employment Standards, the Manitoba Labour Board and the courts. It is provided as a guide to assist in determining if a worker is an employee – and, as such, entitled to Manitoba’s minimum standards – or an independent contractor. Why is it important to distinguish an employee from an independent contractor?By law, employees in Manitoba are entitled to certain specified minimum standards. An employee who is misclassified as an independent contractor may not be receiving these entitlements. Employers who fail to pay an employee properly are liable for unpaid wages and may be subject to monetary penalties. What if someone believes he or she has been incorrectly classified as an independent contractor?Individuals who feel they may be an employee, and are owed wages, can file a claim with Employment Standards. An officer will make a determination if the person is an independent contractor or an employee for the purposes of The Employment Standards Code. Are written agreements enough to establish whether a worker is an employee or independent contractor?A written agreement is just one factor that is considered when determining if an individual is an independent contractor or an employee. Simply saying that the worker is an independent contractor, or having a lawyer prepare an agreement, does not legally or definitely ensure the relationship. Working relationships vary greatly and the differences between an employee and an independent contractor can be complex. Does Employment Standards accept the determination of another government agency that finds that an individual performing work is an independent contractor?Government agencies, such as Revenue Canada, may assess a working relationship to determine if the person performing work is an independent contractor or an employee. Determinations made by these other bodies may be taken into consideration but are not binding for the purposes of applying The Employment Standards Code.Employee vs. Independent Contractor Chart
For more information contact Employment Standards:Phone: 204-945-3352 or toll free in Canada 1-800-821-4307 Fax: 204-948-3046 Website: www.manitoba.ca/labour/standards This is a general overview and the information used is subject to change. For detailed information, please refer to current legislation including The Employment Standards Code, The Construction Industry Wages Act , The Worker Recruitment and Protection Act, or contact Employment Standards.
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Date Published: April 14, 2020 |
- Telephone: 204-945-3352
- Toll Free: 1-800-821-4307
- Fax: 204-948-3046
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