Calling you a contractor doesn't make you one.
If your employer labels you an independent contractor but controls your work like an employee, that can be illegal misclassification — and you may be owed wages, vacation pay, and more. Here's how to figure it out.
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In 30 seconds, here's what's true
- What decides your status is the reality of the work, not your job title or contract. Signing a 'contractor agreement' doesn't make you a contractor if you're treated like an employee.
- It's illegal in Ontario for an employer to misclassify an employee as an independent contractor. But since 2019, if there's a dispute, it's the worker who has to prove they're really an employee.
- The test looks at things like: who controls how you work, who owns the tools, whether you can earn a profit or risk a loss, and whether you're truly in business for yourself.
- If you're really an employee, you may be owed minimum wage, overtime, vacation pay, public holiday pay, and termination pay — sometimes going back years.
- You can file a free claim with the Ministry of Labour (within 2 years) and ask the CRA for a ruling on your status for CPP and EI.
How the process works
Look at the real relationship
Ask: Does your employer control your hours, where you work, and how you do the job? Do they provide the tools? Do you work mainly for them? The more 'yes' answers, the more it looks like employment, whatever your contract says.
Add up what you might be owed
If you're really an employee, you may be owed overtime, vacation pay (4%, or 6% after 5 years), public holiday pay, and termination pay. Note your pay, hours, and how long you've worked — these can be claimed retroactively.
Gather your evidence
Save your contract, pay records, schedules, emails showing who directs your work, and anything showing you were treated like staff (a company email, set hours, a uniform). This is what proves employee status.
File a claim with the Ministry of Labour
You can file a free Employment Standards claim. An officer investigates whether you were misclassified and can order unpaid wages. You generally have 2 years, and can recover unpaid wages from the 2 years before you file.
Ask the CRA for a ruling too
For CPP and EI, you can ask the CRA to rule on whether you're an employee or self-employed (Form CPT1). This is separate from the Ministry claim and can also matter at tax time. A legal clinic can guide you.
What to do next
- Write down who controls your hours, location, and how you work.
- Note who provides the tools and equipment you use.
- Note whether you work mainly for this one company.
- Save your contract, pay records, schedules, and work emails.
- Calculate unpaid overtime, vacation pay, and holiday pay you may be owed.
- File a free Employment Standards claim (within 2 years).
- Consider asking the CRA for a ruling (Form CPT1) on your status.
- Start a free PLAIN session to check your status and plan next steps.
Common myths
| Myth | Reality |
|---|---|
| I signed a contractor agreement, so I'm a contractor. | Not necessarily. What matters is the real relationship — control, tools, and risk — not the label on a contract. |
| If they pay me with no deductions, I must be self-employed. | No. How you're paid doesn't decide your status. You can be an employee even if no tax is taken off. |
| Contractors get no protections at all. | Even 'dependent contractors' who rely on one company can be owed reasonable notice when let go. |
| Calling me a contractor makes it legal. | No. Misclassifying an employee as a contractor is illegal in Ontario, regardless of the label used. |
| My employer has to prove I'm a contractor. | Since 2019, in a dispute it's the worker who has to show they're really an employee — so gather your evidence. |
| I can't claim anything from the past. | If you're found to be an employee, you can recover unpaid wages from the 2 years before you file. |
| This only matters for my paycheque. | It also affects CPP, EI, and tax. You can ask the CRA for a ruling on your status. |
| There's no way to challenge it. | You can file a free Ministry of Labour claim and ask the CRA for a ruling — both are open to you. |
Last reviewed June 2026
Written and reviewed by the founder of PLAIN, checked against primary government and legal sources. How we research these guides
Sources
PLAIN gives legal information, not legal advice. It is not a substitute for a lawyer or paralegal — and we'll point you to free ones. Laws change; we review these pages regularly, but always confirm current rules with the Ministry of Labour or a licensed professional.
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