Physiotherapy Contractor Agreement
Whether you are a new physiotherapy graduate or have recently emigrated to Canada to work in a private clinic, you face the challenge and complexity of becoming an independent employee or contractor. The main difference between an “independent contractor” and a “dependent contractor” is the termination of the contractor`s services. In the event of a contractual relationship, the holder must grant an appropriate termination of the contract, unless it is expressly dealt with in a written agreement. The duration of termination to which dependent contractors are entitled is fixed on a case-by-case basis. Businesses are also subject to different taxes. The corporate tax rate is generally lower than the individual rate and, therefore, creation may offer some tax benefits (it is best to discuss these benefits with accountants). However, the Canada Revenue Agency may find that a contractor`s company is a “personal services business,” i.e., the contractor would be considered “reasonably as an employee” of the company or the companies for which the contractor`s services were provided, but for the existence of the contractor`s company. The Canadian Revenue Agency`s classification as a “personal services company” and not as a registered contractor can have significant negative tax consequences for contractors. (It is best to discuss these implications with the accountant) Albert Nolette is a contract lawyer. Although employed by Field Law in Edmonton, AB, Albert ignitephysio helped clear up the frequent misunderstandings of contractors against the status of staff in physiotherapy.
The rating agency asks the parties to the employment contract what their intention was when they entered into the employment agreement. The rating agency wants to know how it defines its working relationship and why it defines it as such. Sometimes the intention is clear and both parties agree (common intention). Sometimes the parties have different views on the status of their working relationship, in which case there is no common intention. Prior to signing an agreement, professional advice should be sought to determine whether a non-competition clause is appropriate and valid. There are laws to ensure that genuine independent contractors are not treated as workers and to protect real workers from being treated as independent contractors. It is important to make a clear distinction, as the relationship between the employer/employee and the payer/contractor has different legal obligations and tax consequences. The courts have introduced a multi-factor test to determine whether a person is an independent worker or contractor. No subject will be decisive. However, the courts will have more weight on certain issues, including the right to control how the work is performed.
I hope you find this article by Albert useful for understanding the staff landscape against the contractor. A clinic may include a non-compete clause in an independent awardee contract. However, the terms of a contractor`s agreement are freely negotiated between the contractor and the clinic. Contractors are not required to have such clauses in their contracts.