Dependent Contractor

McKee v. Reid's Heritage Homes Ltd., 2009 ONCA 916 (CanLII)

(1) Employee vs. dependent contractor

[22] RHH submits that the law provides for an intermediate position of “dependent contractor” between employee status and independent contractor status. I agree. The caselaw’s evolution demonstrates the existence of an intermediate category, defined by economic dependency in the work relationship, requiring, inter alia, some reasonable notice for termination.

[23] RHH further submits that the trial judge erred in determining that McKee was an employee because a proper application of the law to this case necessitates a conclusion that McKee was a dependent contractor of the sort defined above. For the reasons that follow, I disagree. Although I conclude that a “dependent contractor” category exists, I nevertheless conclude that the existing principles defining the employee category remain intact. Employing these principles, the trial judge concluded that McKee is an employee, a decision for which he is owed substantial deference.