2.55. Employer-Employee Relationships
- When contracting for the services of individuals, including temporary help, contracting officers should carefully review the circumstances in order to avoid establishing an employer-employee relationship which would be contrary to or in conflict with the Public Service Employment Act and common law principles dealing with employer-employee relationships.
- As per sections 4.1.9(e)and 16.3 Employer-employee relationships of the Treasury Board Contracting Policy, contracting officers must ensure that an employer-employee relationship will not result when contracting for the services of individuals.
- Criteria for assessing an employer-employee relationship have been established by the Canada Revenue Agency (CRA) and pertinent court rulings. For guidance, seek legal advice or consult the CRA publication RC 4110, Employee or Self-Employed?. If there is any uncertainty, the contract should be signed at a level higher than the individual who would normally approve the initial entry into the contract.
- Legal advice should be sought where it is not feasible for contracting officers to determine whether a contract is a contract for services or a contract of employment (i.e. employment status is not easily identifiable). It is ultimately the responsibility of the contracting officer to ensure that contracts do not create employer-employee relationships.