Employment / source of income

[vikashI]

Hi, I am applying outland application to my wife. I am incorporated and working on contract basis currently. Should I mention myself as self employed or get a letter my contract agency ? Thanks in advance.

 

[canuck78]

Hi, I am applying outland application to my wife. I am incorporated and working on contract basis currently. Should I mention myself as self employed or get a letter my contract agency ? Thanks in advance.

Are you only working through an agency to find temporary jobs? Self-emplayed empties that you don’t have a boss you only have clients and customers you work for. If you are working for the agency they would be your employer.

 

[vikashI]

Thanks a lot for your reply. I am working as an independent contractor. I am in contract agreement with a company that has clients and pay me by hour for the IT services I provide. I have incorporated my company. Can this be considered as self employed?

 

[gracefu68]

Thanks a lot for your reply. I am working as an independent contractor. I am in contract agreement with a company that has clients and pay me by hour for the IT services I provide. I have incorporated my company. Can this be considered as self employed?

Hi, did you receive any answer for this?

 

[gracefu68]

That member's post is almost a year old and the member has not been on the forum since December/21. So your chances of getting a reply are almost zero.

But, the simple answer to the question is that the member would be considered self-employed, in the situation described. At least if I understand things correctly.

I am assuming the member takes on work for "the company", which has a relationship with "clients". The member has incorporated a company that is the vehicle used to deliver the services. So, I further assume that the member's company bills "the company" on a periodic basis for the number of hours worked since last invoice. If the member's company bills over $30,000 annually, I'll also assume it is adding GST to its invoices. In turn, "the company" pays the gross invoice amount, without deduction for income tax, etc. if I am close to right in most of the foregoing, the member is "self-employed". So far as the Canada Revenue Agency is concerned, one is either employed or self-employed. There is scant prospect of this member being considered as an employee.

I have a similar question, but this is for non-Canadian (foreign) work experience. Would appreciate if you could respond to this:

A person (working in India) is employed with a certain Indian company as an "Independent Contractor". Unlike freelancers who may work for different clients, this person is working for just one company. The salary is paid by the company which is certain fixed amounts depending on the work done. There is no third party (client) involved here, just the person and the company. There are bank statements, salary slips, Income Tax return (India) statements, etc. to prove that this person is working & receiving a salary from this company.
Would the term "Independent Contractor" be a problem if the person applies for Canada PR? Since the person is not directly contacting clients for work (which is what a freelancer does), this would technically not be a "self-employed person". There are confusing terms on the Internet, especially the "Self-employed category" part.

 

[canuck78]

I have a similar question, but this is for non-Canadian (foreign) work experience. Would appreciate if you could respond to this:

A person (working in India) is employed with a certain Indian company as an "Independent Contractor". Unlike freelancers who may work for different clients, this person is working for just one company. The salary is paid by the company which is certain fixed amounts depending on the work done. There is no third party (client) involved here, just the person and the company. There are bank statements, salary slips, Income Tax return (India) statements, etc. to prove that this person is working & receiving a salary from this company.
Would the term "Independent Contractor" be a problem if the person applies for Canada PR? Since the person is not directly contacting clients for work (which is what a freelancer does), this would technically not be a "self-employed person". There are confusing terms on the Internet, especially the "Self-employed category" part.

Most contract employees are still are employees of the organization just not without the security and often benefits (like medical insurance) that come with permanent positions.

 

[gracefu68]

Most contract employees are still are employees of the organization just not without the security and often benefits (like medical insurance) that come with permanent positions.

Yes, that's a similar case here. The person is not entitled to any employee benefits, insurance, etc., but is paid by the company only, not by the clients the company deals with. There wouldn't be a problem in this case for Canada PR right? Would the person have to select "self-employed" when applying for Express Entry profile?

 

[gracefu68]

I do not see why the IRCC will much care about tying down the exact nature of your working relationship for PR purposes. They probably care if you have work, earn income, etc.

As noted in a recent BC Supreme Court decision: "It is now well established that there is a continuum of working relationships between that of an employee and that of an independent contractor."

For an illuminating discussion on the topic, see:

Cho v. Stonebridge Solutions Inc., 2020 BCSC 1560

https://www.bccourts.ca/jdb-txt/sc/20/15/2020BCSC1560.htm

I refer, in particular, to what is said at para. 20 et seq.

If you care for more, here are a couple:

Farren v. Elite Service Group Inc., 2020 BCSC 23

https://www.bccourts.ca/jdb-txt/sc/20/00/2020BCSC0023.htm

Meridian Distribution Ltd. v. Endeavor Design Inc., 2019 BCSC 2406

https://www.bccourts.ca/jdb-txt/sc/19/24/2019BCSC2406.htm

I can come up with a few dozen more, if you want 'em.

As an aside, I doubt any VO has the depth of knowledge of Canadian employment law to arrive at any meaningful conclusion in many cases. But, as I said, I can see no reason why they need delve into the niceties of employment law in many, if any, cases.

Thank you very much for providing those links as well, and for your response...things make much more sense now! I found conflicting & confusing answers regarding this on the internet, and hence wanted to confirm. So this basically means that, as long as you have all valid documentation to prove your work experience and employment, it doesn't matter whether you're an "independent contractor" as well, since that wouldn't affect your application, correct?

 

[gracefu68]

That would be my view of the matter.

Oh ok. Thanks for your help!

 

[canuck78]

Yes, that's a similar case here. The person is not entitled to any employee benefits, insurance, etc., but is paid by the company only, not by the clients the company deals with. There wouldn't be a problem in this case for Canada PR right? Would the person have to select "self-employed" when applying for Express Entry profile?

they aren’t self-employed.

 

[gracefu68]

they aren’t self-employed.

Oh alright, thanks for clearing this.