Independent Contractor Lawyer in Toronto and Ontario

Many Ontario workers are labelled independent contractors when the law would treat them as employees or dependent contractors, and that difference can be worth months of notice, severance, and unpaid entitlements. The label in your agreement does not decide the question; the substance of your working relationship does. If you are a contractor facing termination, a withheld payment, a restrictive contract, or you suspect you were misclassified, Achkar Law's employment lawyers can tell you what your true rights are, often more than your contract suggests.

Independent Contractor, Dependent Contractor, or Employee?

Ontario law recognizes three categories of worker, and which one applies to you decides what you are owed:

• Independent contractor. Genuinely in business for yourself. Governed by contract law, not the Employment Standards Act, 2000, with no statutory notice or severance.
• Dependent contractor. A middle category for a contractor who is economically dependent on one client. Dependent contractors are entitled to reasonable notice on termination, similar to employees, a right the Court of Appeal confirmed in McKee v. Reid's Heritage Homes.
• Employee. If you have been misclassified and are really an employee, you are entitled to the full protections of the Employment Standards Act, 2000 and the common law.

Courts look at the true nature of the relationship, not the wording of the agreement. The factors include the degree of control over your work, whether you own your tools and equipment, your chance of profit and risk of loss, how integrated you are into the business, and how economically dependent you are on a single client. Ontario's Employment Standards Act, 2000 also prohibits employers from misclassifying employees as contractors, and puts the onus on the employer to prove you are not an employee.

Were You Misclassified? What You May Be Owed

Misclassification is common, and correcting it can be worth a great deal. If a court or tribunal finds that you were actually an employee, you may be entitled to:

• Termination pay and, where you qualify, statutory severance pay
• Common-law reasonable notice, often far more than the statutory minimum, through a wrongful dismissal claim
• Unpaid vacation pay, overtime, and public holiday pay
• Unpaid commissions and other withheld compensation

If you are found to be a dependent rather than a full independent contractor, you are still entitled to reasonable notice on termination even though other employee entitlements may not apply. Either way, the gap between what your contract says and what the law provides is often significant, and it is worth having assessed before you accept anything.

Independent Contractor Agreement Review

A properly drafted contractor agreement can significantly affect your rights in a dispute. We regularly advise contractors in Toronto and across Ontario on:

• Termination clauses and notice provisions
• Restrictive covenants, including non-compete and non-solicitation clauses
• Commission and bonus structures
• Intellectual property ownership
• Conversion clauses
• Payment and invoicing terms

Many contractor agreements contain broad termination language or restrictive clauses that may not be enforceable. Before you sign, or if a dispute has arisen, it is worth understanding whether your agreement actually limits your notice rights, whether a restrictive covenant against you is enforceable, whether unpaid compensation can be recovered, and whether the contract reflects the real nature of your working relationship. For related help, see our employment contract services.

Independent Contractor Disputes and Termination

Disputes usually arise when the relationship ends or payment is withheld. We assist with:

• Termination of contractor agreements
• Dependent contractor notice claims
• Unpaid commissions and withheld payments
• Breach of contract
• Wrongful termination allegations
• Restrictive covenant disputes
• Constructive dismissal arguments

Even where your agreement states that you are an independent contractor, a court can examine the true nature of the relationship and reach a different conclusion. Where a dispute proceeds, our employment litigation team represents contractors through negotiation and, where needed, the Ontario courts.

Can Independent Contractors Get Severance or Notice in Ontario?

True independent contractors are not entitled to statutory severance under the Employment Standards Act, 2000. But many people labelled as independent contractors are, in law, dependent contractors or employees, and those workers can be entitled to reasonable notice or full statutory and common-law entitlements. The deciding issue is economic dependency and the real nature of the relationship, not the label in the agreement. If your engagement was terminated, get legal advice before accepting a settlement or signing a release, because the amount you are owed may be substantially higher than what you were offered.

What a Contractor Lawyer Does for You

Assesses your true classification

We review how you actually worked, not just what your contract says, and tell you honestly whether you are likely an independent contractor, a dependent contractor, or a misclassified employee.

Reviews your agreement

We examine your termination, notice, and restrictive covenant clauses and explain what they really mean for your rights and your risk.

Challenges misclassification

Where you were misclassified, we pursue the notice, severance, and unpaid entitlements you are owed as an employee or dependent contractor.

Recovers unpaid compensation and handles disputes

We pursue unpaid commissions and withheld payments, defend against overreaching restrictive covenants, and represent you in negotiation or litigation when a dispute arises.

Independent Contractor Frequently Asked Questions

Can I challenge my classification as an independent contractor?

Yes. Courts and tribunals assess the substance of the working relationship, not the label in your agreement. If you function like an employee or a dependent contractor, in terms of control, economic dependence, and integration into the business, you may have significantly more rights than your contract suggests, including notice, severance, and unpaid entitlements. Ontario's Employment Standards Act, 2000 also places the onus on the employer to show you are not an employee.

What is a dependent contractor?

A dependent contractor is a worker who is technically an independent contractor but economically dependent on a single client, often working mainly or exclusively for one company over a meaningful period. Ontario law, following the Court of Appeal in McKee v. Reid's Heritage Homes, treats dependent contractors as entitled to reasonable notice of termination, similar to employees, even though the label on the contract says otherwise.

I think I was misclassified. What can I claim?

If you were actually an employee, you may be able to claim termination pay, statutory severance where you qualify, common-law reasonable notice, and unpaid vacation, overtime, and holiday pay, plus any withheld commissions. If you were a dependent contractor, you may be entitled to reasonable notice on termination. The value depends on your length of engagement, your role, and the degree of your economic dependence, so it is worth having your situation assessed.

Can I recover unpaid commissions?

Often, yes. Commission and payment disputes are generally governed by your contract and the surrounding circumstances, and unpaid amounts can frequently be recovered through negotiation or litigation. Keep your invoices, agreements, and records of what was owed, they are central to a commission claim.

What happens if my agreement has no termination clause?

The absence of a valid termination clause generally works in your favour. Without an enforceable clause limiting your entitlement, a dependent contractor or misclassified employee is usually entitled to reasonable notice determined by the courts, which is typically well above any minimum. This is one of the first things a lawyer checks.

Are non-compete clauses in contractor agreements enforceable?

Frequently not. Courts are reluctant to enforce non-compete clauses unless they are reasonable in scope, duration, and geography and go no further than necessary to protect a legitimate interest. Non-solicitation clauses are more likely to be enforced than outright non-competes. If a former client is trying to enforce a restrictive covenant against you, have it reviewed before you assume it binds you.

Speak With an Independent Contractor Lawyer in Ontario

Independent contractor disputes and agreement issues can significantly affect your income and your professional future. Whether you need advice before signing a contract or after a termination, tell us what is happening and we will respond promptly with a clear read on your rights and your options. You can also reach us at 1-800-771-7882. We advise independent and dependent contractors in Toronto, Ottawa, and across Ontario, including Mississauga, Brampton, Markham, Hamilton, London, and Kitchener-Waterloo, with virtual consultations province-wide.

Phone calls, consultations, forms, and emails sent to us do not create a lawyer-client relationship and do not constitute legal advice.