Contractors vs Employees - You Won't Be the Judge

Kelly VanBuskirk, KC, PhD, C. Arb.

The recent ruling of the the BCCRT in Talvio v. Cascade Journalism Society, 2026 BCCRT 114 (CanLII), https://canlii.ca/t/khrdf illustrates (again) the legal and financial risks organizations undertake when engaging workers classified as contractors but who function more like employees. The Tribunal found that, despite being characterized as a "contractor" in her written agreement to take on the role of managing editor of a student newspaper, Ms. Talvio was in fact a dependent contractor — a sort of middle axiom between "employee" and "independent contractor". As a dependent contractor, Ms. Talvio was entitled to reasonable notice of dismissal, even though the parties had initially agreed she wasn't.

This case demonstrates that contractual labels alone do not determine worker classification. Courts and tribunals have to apply a multi-factor test (see Wildflower Jewelry Ltd. v Kassem, 2020 CanLII 73637 (AB ESAB), https://canlii.ca/t/j9z52 ) in order to assess the true nature of the working relationship. Organizations that misclassify workers face limits on disciplinary actions, liability for wrongful dismissal damages, and possibly statutory penalties under employment-based legislation. James LeMesurier, K.C. brought this issue to the forefront way back in 1999 in the case of Jackson v. Norman W. Francis Ltd., 1999 CanLII 9428 (NB QB), https://canlii.ca/t/1k311, and it continues to present risks for employers 27 years later!