Scenario P Flashcards
Urban Couriers employs bicycle couriers to pick up and deliver packages locally in cities across Ontario. The couriers provide their own bicycles, and usually do not need to report to their local office at the start or end of their shifts. The company’s owner has decided to experiment with hiring independent contractors in place of regular employees, but she is concerned about violating the employment regulations. To be certain, she asks an HR advisor to review 3 currently open positions at the company to determine which roles could be filled by independent contractors and which should be filled by regular employees. The first position is a brand promoter role. This position offers a flexible work schedule and is paid monthly on a salaried basis. There is no requirement to work at the office regularly, but the promoter must report to headquarters once a week. The second position is for a bookkeeper who would work remotely from home. The individual Urban Couriers is considering for the role previously worked as a freelancer for similar sized companies but plans to reduce his workload to only one client, Urban Couriers. The third position is for an occasional bicycle courier who would work a few shifts with Urban Couriers each month to provide coverage for the other couriers. Of the 3 positions, which one should the HR advisor recommend not be filled by an independent contractor? a) Brand promoter b) Bookkeeper c) Bicycle courier
The answer is a. Brand promoter Functional Area: A2 Rationale(s): A is correct. Given that the position is paid a monthly salary and must report to headquarters once a week, it cannot be filled by an independent contractor. As independent contractors are traditionally paid for services rendered instead of on a salaried basis and are not required to report in to a central location regularly. B is incorrect. A contract bookkeeper role could be filled by an independent contractor. However, the candidate being considered is reducing his client base to only working for Urban Courier. This makes him more likely to qualify for dependent contractor than an independent contractor. C is incorrect. Bicycle courier can easily be filled by independent contractors like Denis, who work for Urban Couriers and for other employers. Reference(s): Unit 4: The Employment Contract, Part 2, Module 3: Employees and Independent Contractors. Montreal v. Montreal Locomotive Works Ltd., [1947] 1 DLR 161, 1946 CanLII 353 (UK JCPC
Urban Couriers employs bicycle couriers to pick up and deliver packages locally in cities across Ontario. The couriers provide their own bicycles, and usually do not need to report to their local office at the start or end of their shifts. The company’s owner has decided to experiment with hiring independent contractors in place of regular employees, but she is concerned about violating the employment regulations. To be certain, she asks an HR advisor to review 3 currently open positions at the company to determine which roles could be filled by independent contractors and which should be filled by regular employees. The first position is a brand promoter role. This position offers a flexible work schedule and is paid monthly on a salaried basis. There is no requirement to work at the office regularly, but the promoter must report to headquarters once a week. The second position is for a bookkeeper who would work remotely from home. The individual Urban Couriers is considering for the role previously worked as a freelancer for similar sized companies but plans to reduce his workload to only one client, Urban Couriers. The third position is for an occasional bicycle courier who would work a few shifts with Urban Couriers each month to provide coverage for the other couriers. The HR advisor informs Urban Couriers that one factor in particular would likely disqualify bicycle couriers from being considered independent contractors. What factor is he likely referring to? a) If they worked for Urban Couriers for more than 3 years. b) If they are required to wear a company uniform. c) If they are covered by the company’s liability insurance.
The answer is b. If they are required to wear a company uniform. Functional Area: A2 Rationale(s): A is incorrect. There is no legal limit on how long an independent contractor can service a client. B is correct. Requiring an independent contractor to wear a company uniform may disqualify them from being considered an independent contractor because the company is exercising control over how they act/look while doing their work. An independent contractor would likely be told the task to be completed and given some minimal control requirements (e.g., when to have work done and how to conduct themselves with customers). Requirements such as uniforms and specific work routes generally indicate that the workers are employees. C is incorrect. Being covered by a client’s liability insurance does not automatically change the contactor–client relationship as it could be negotiated as part of contract for services. A company may have insurance for all visitors that would include independent contractors. Reference(s): Unit 4: The Employment Contract, Part 2, Module 3: Employees and Independent Contractors. Montreal v. Montreal Locomotive Works Ltd., [1947] 1 DLR 161, 1946 CanLII 353 (UK JCPC). Belton v. Liberty Insurance Company of Canada (2004), 70 O.R. (3d) 81.
Urban Couriers employs bicycle couriers to pick up and deliver packages locally in cities across Ontario. The couriers provide their own bicycles, and usually do not need to report to their local office at the start or end of their shifts. The company’s owner has decided to experiment with hiring independent contractors in place of regular employees, but she is concerned about violating the employment regulations. To be certain, she asks an HR advisor to review 3 currently open positions at the company to determine which roles could be filled by independent contractors and which should be filled by regular employees. The first position is a brand promoter role. This position offers a flexible work schedule and is paid monthly on a salaried basis. There is no requirement to work at the office regularly, but the promoter must report to headquarters once a week. The second position is for a bookkeeper who would work remotely from home. The individual Urban Couriers is considering for the role previously worked as a freelancer for similar sized companies but plans to reduce his workload to only one client, Urban Couriers. The third position is for an occasional bicycle courier who would work a few shifts with Urban Couriers each month to provide coverage for the other couriers. Despite the recommendations of the HR advisor, Urban Couriers decides to fill all 3 positions with independent contractors. Given the recent changes to rules governing the classification of workers due to Bill 148 and Bill 47, what should Urban Couriers be prepared for? a) Urban Couriers will have to justify its classification and could face prosecution if any workers are incorrectly classified as independent contractors. b) The Ministry of Labour will conduct an annual audit of all workers deemed independent contractors and could prosecute Urban Couriers if it finds proof of misclassification. c) The workers could sue Urban Couriers if they believe they have been misclassified as independent contractors, in which case they would have to prove they were.
The answer is c. The workers could sue Urban Couriers if they believe they have been misclassified as independent contractors, in which case they would have to prove they were. Functional Area: A2 Rationale(s): A is incorrect. Although Bill 148 did place the onus on employers to justify the classification of a worker as an independent contractor if called upon to do so, these changes, along with most of the rest of Bill 148 were repealed by Bill 47. B is incorrect. As a general rule, annual audits are not currently the norm. C is correct. Bill 47 removed the reverse onus that had been placed on employers by Bill 148 to justify their classification of workers as independent contractors. However, the company could still face significant financial challenges if any of its workers are incorrectly classified as independent contractors and decide to sue. Reference(s): Fair Workplaces, Better Jobs Act, 2017, S.O. 2017, C. 22. Making Ontario Open for Business Act, 2018, , S.O. 2018, c. 14 – Bill 47
