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07

Oct
2021

In Uncategorized

By Bill

Severance Agreement For Independent Contractor

On 07, Oct 2021 | In Uncategorized | By Bill

If your independent contractor contract contains a provision that allows the parties to terminate the relationship at any time, re-establish the contract in order to introduce a termination clause with at least some kind of notice to terminate the contract. A severance pay, also known as “consideration,” is usually based on the employee`s salary. If you`re not sure how to calculate severance pay, check out our free resource: Contractors typically employ 1099 people, which means some companies choose not to offer them severance pay. There is often no doubt that a worker is entitled to severance pay. However, in certain circumstances, the parties disagree on a worker`s status, particularly where the worker believes that their status as a subcontractor was only a label that their employer/client gave them to evade certain obligations, including the provisions of Code 1 of the Employment Standard, such as overtime, vacation pay and working time limitations. When such a disagreement arises, the initial question is: was the worker a real “employee” or was he really a “contractor”? The investigation is not completed in the event that a court determines a person as the contractor. Instead, the question that arises is: was the contractor economically dependent on a particular client?2 If he did, he too is entitled to appropriate termination/severance pay. The courts have designated this type of worker as belonging to the intermediate category of the “salaried contractor”. The Ontario Court of Appeal3 stated this category as follows: 26. . . .