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Wilfrid Laurier University
Daniel J Fife

1READING NOTESCHAPTER 20Contract of EmploymentRelationship of Employer and EmployeeRelationship of employer and employee is established by a contract that gives one party the employer the authority to direct and control the work of another partyoAdditional terms are implied relating to Common law termination noticeStatute Statutory minimums workers rightsNever start in position of strength as employee laws are designed to protect youoTerms of ContractJob Description from HRProvides standard against which to evaluate your performanceRate of PayTermOption to terminate discussed laterCompare with Independent ContractoroIf an individual is found to be an independent contractor rather than an employee then the relationship is governed by the terms of the contract and the general principles of contract lawoHow recognize difference in assessing relationshipControl of employee by employer Ownership of tools of production Use of time by the hr vs Delivery of result complete projectRisk of profit or loss full liability for contractorExclusivity and duration Employees can only work for one business often for an indefinite time contractors are gone when contract is completeSource deductions and expensesEmployer takes of EI CPPoContract may state nature of relationshipoDistinction is important as it affects agency and vicarious liabilityWhen a firm undertakes work as an independent contractor any liabilities that it incurs are almost entirely its ownSmall exceptions in that a firm may have responsibility to see that contractor takes reasonable precautionsto avoid endangering third partiesAmending Terms of Employment ContractsThe ability of an employer to amend the terms of the employment contract will be impacted by the terms of the contractA unilateral substantial change to an important term Ie salary job position can result in constructive dismissaloConstructive dismissalan employee claims wrongful dismissal based on the unilateral change of the terms of employment which amounts to repudiation of the employment contract
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