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I've been employed by my employer for about a year or two as a part time employee working on the weekends when I first started. In 2021 I switched to full time on payroll as a seasonal employee. In July of 2021 I bought a new truck. I then negotiated a rate with bonuses with my employer during the off season for the following 5 years as a subcontractor, he agreed. There was no contract, it was a verbal agreement. Since then I have worked every year for my employer, excluding the winter months. I am due to start working this upcoming season sometime this month. My employer called me last month and told me that if I decide to return this season that the pay will not be hourly anymore and that it will be changed to a flat rate. He has been trying to convince me a few times last year to do a flat rate of pay, which every time he asked, I declined. I do not want flat rate as I know I will make less. As per our verbal agreement, I still have 2 seasons left to work under that arrangement. Even tho I am a subcontractor in Ontario, is this a constructive dismissal? And would I be entitled to severance?
The Employment Standards Act does not apply to Contractors in Ontario. Dependent Contractors may be entitled to common law notice of termination, depending on the specific facts of the matter.
An Employer unilaterally changing an Employee's form of compensation may give rise to a constructive dismissal, depending on the context and facts of the employment relationship.
Given the highly fact specific nature of both these issues, we strongly recommend you get in touch with our Firm's intake department.
An Employer unilaterally changing an Employee's form of compensation may give rise to a constructive dismissal, depending on the context and facts of the employment relationship.
Given the highly fact specific nature of both these issues, we strongly recommend you get in touch with our Firm's intake department.