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

What is considered when looking at the issue of payment?

The payment test considers the financial details of the relationship between the worker and the payer.

Certain factors are generally considered strong evidence of an employer/employee relationship. For example:

  • Does the worker receive continuous payments of regular amounts at set intervals (as opposed to a lump sum)?
    Does the worker receive payments regardless of customer satisfaction or customer payment?
    Does the payer pay for the worker’s traveling expenses and other expenses incidental to the payer’s business?
  • Does the payer contribute to employee benefit plans on behalf of the worker, and are the plans for the specific benefit of employees?
  • Is the worker trained by an experienced employee, correspondence, required attendance at meetings, or other methods that the payer controls? (A contractor generally uses his/her own methods and comes with―and is hired specifically for―his/her own expertise.)

 

 


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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