The Canada Labour Code (the Code)
The Canada Labour Code (the Code) is an Act of the Parliament of Canada that: defines the rights and responsibilities of workers and employers in federally regulated workplaces, and. sets out federal labour law. Part III (Labour Standards) of the Canada Labour Code (the Code) applies to, and in respect of, employees employed in or in connection to any federal work, undertaking or business (including employees of Crown corporations and excluding the federal public service). Part III of the Code is the only labour standards legislation in Canada that does not include a definition of “employee”.
While not explicitly stated, Part III does not treat independent contractors as employees. However, it does apply to them as employers if they have employees and operate in the federally regulated private sector (FRPS).
In the application of Part III, binary determinations of whether someone is a true employee (who would be covered by Part III) or a true independent contractor (who would not be covered by Part III) are made on a case-by-case basis by Labour Program inspectors, adjudicators and the courts.Footnote2 If the relationship more closely resembles that of employee-employer, the worker will generally be deemed to be an employee.