Misclassifying a worker may save a dollar today, but it could cost much more tomorrow

You can save this article by registering for free here. Or sign-in if you have an account.

With minimum wages creeping up, many Canadian employers turn to “independent contractors” to manage fluctuating work demands.

Subscribe now to read the latest news in your city and across Canada.

Subscribe now to read the latest news in your city and across Canada.

Create an account or sign in to continue with your reading experience.

Create an account or sign in to continue with your reading experience.

Don't have an account? Create Account

But a recent Alberta tribunal decision serves as a stark reminder: how you label a worker is far less important than the true nature of the relationship.

In ARH Developments Inc. v Elrateb, an Alberta Employment Standards Appeal panel confronted this issue head-on.

Mohammed Abdulb Elrateb worked as a security guard for ARH Developments for one month in the fall of 2024. The parties verbally agreed that he would be paid a flat fee of $3,000 per month. An hourly wage was never agreed to.

When Eltrateb asked for payment after a month, ARH refused.

Eltrateb filed a labour complaint claiming he was owed wages, overtime and vacation pay. At the tribunal, he........

© Toronto Sun