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Alberta > Employment Law > The difference between employees and independent contractors

What is considered when looking at the issue of ownership of tools?

The ownership of tools test has a broad application. The word tools can be interpreted to mean, for example, space, supplies, materials, furnishings, phones, computers, and equipment.

In general, a worker is more likely to be in an employment relationship if s/he uses tools, space, supplies, materials, furnishings, and equipment owned by the payer. If, on the other hand, the worker owns or rents the tools, materials, and facilities s/he uses to perform services, s/he is more likely to be an independent contractor. Other aspects of this issue include who bears the cost of replacing the tools and who retains the tools when the work is complete.

Some employees such as mechanics customarily use their own hand tools. The courts have recognized that some employers require employees to provide their own tools and/or vehicles.

 


WARNING: The contents of these FAQs are intended as general legal information only.
If you have a personal problem, please consult a lawyer.

May 2008
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