I have been working at my workplace as an employee for 3 years as a clinical counsellor. Last week, I was told that the employment program would be shut down (to save money on taxes) and I would be switched over to contractor. Which means that I will lose my salary, vacation time, etc. I will be hired back into the same role as a contractor, and they said they will make me an offer next week for my rate. They have said nothing about severance pay as it seems they are mostly treating it as just a change in title. This is all happening 6 months before I go on maternity leave, which my employer does know about. I am uncertain if I have a case here but would love your perspective. I was told that this change is due to wanting to “get away from all these taxes” and has nothing to do with my work performance.

Thanks for sending over this question. If your employer plans on ending the employment relationship, this is a termination, full stop. Once you are terminated (without cause), notice or pay in lieu thereof, is owed, the amount of which is determinable through employment standards legislation and the common law. Whether or not you want to accept an offer of re-employment as a contractor is up to you, but there is likely not an expectation at law that a reasonable person in your circumstances would accept a contractor position with significantly less security and employee protections than what you had previously. I would recommend that you book a consult with an employment lawyer at our firm before signing any offer.

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