Independent Contractors vs. Employees: What’s the Difference?

In days gone by, workers carried out all workplace functions. However, workplace trends change over time, and the concept of hiring outside workers to complete singular functions is growing in popularity. It’s undeniable that there are benefits to using independent contractors, but how does that impact health and safety in the workplace? 

Whether you call them gig workers, freelancers, temps, or by their proper name, independent contractors, they’re gaining a foothold in the modern work landscape. 

Employers must be careful because sometimes an independent contractor is considered an employee under the ESA, even if the employer does not intend for them to be. It is the relationship between the contractor and the employer that matters when it comes to defining whether a contractor is an employee, and not the label given to the relationship. 

According to the Employment Standards Act (ESA) in Ontario

“An independent contractor is in business for themselves. An individual may be considered an independent contractor, and not covered by the ESA, when at least some of the following applies:

• the business can end the individual's contract for services, but cannot discipline the individual
• the individual:
  • has the opportunity to make a profit and has a risk of losing money from the work
  • determines how, when or where the work is performed
  • decides whether to subcontract some of the work”

Despite the many benefits of working with independent contractors, there are implications for workplace health and safety.

What is the Impact on Safety?

Hiring Independent contractors is gaining traction at the moment, and it has many benefits including: 

• Access to specific skills and expertise
• Work efficiencies resulting in cost savings
• Not responsible for paying for training, development, or professional fees
• Save on benefits costs and administration
• Fill temporary talent gaps

 
Despite the many benefits of working with independent contractors, there are implications for workplace health and safety.

Overwork: Independent workers aren’t under your jurisdiction, and nothing is stopping them from taking more than one job at a time. However, this can become a safety risk when they’re working excessive hours, resulting in fatigue on the job.

Knowledge Gaps: Independent contractors may not know that they have the same basic rights as employees: to know, to refuse, and to participate. Often if they have safety concerns, they don’t know who to talk to, or they’re hesitant to bring it forward at all.  

Workplace Violence and Harassment: There’s been a significant increase in independent contractors who provide delivery services and rides. These contractors work alone with little support and are at higher risk for violence and harassment. 

Stress Injuries: All workers experience stress at times, but that stress can be amplified for contractors, especially if they need to take multiple jobs to make ends meet. Additionally, having to constantly line up jobs, manage business administration, and follow all ESA, Health and Safety, and industry standards creates more stress for independent contractors. Learn about Managing Stress at Work.

Training: Contractors may not have the same training your employees receive. It’s also possible that although a contractor holds certification, they’re at higher risk for injury because they don’t use the skills every day. When it comes to training costs, employers aren’t responsible for providing health and safety training or onboarding training; however, you may want to consider putting together a standard package for all contractors if your organization uses them regularly. Include the basics, such as: 

• Job-specific WHMIS
• Workplace Violence and Harassment Policy and Reporting
• General Safety Awareness, including how to report hazards and whom to contact to ask questions, discuss concerns, or report an incident
• General orientation to the workplace including the location of fire extinguishers, eye-wash stations, first aid kit, etc.

 
Much of this training can be provided quickly and conveniently, and at low cost, via eLearning.
 

Browse our e-Learning catalogue now

It is possible that although a contractor holds a training certification, they’re at higher risk for injury because they don’t use the skills every day. 

Trust MidSouthWest Training and Consulting

MidSouthWest Training and Consulting offers consulting services, and we can help you determine if your independent contractors meet the definition as set out by the ESA. We’ve also got a robust online training catalogue that you can use as a cost-effective method of ensuring that all your independent contractors complete some basic health and safety training.
 
To ask questions, contact us online or call 289.309.1143. Visit us 24/7 on the web at midsouthwest.ca.

​Last updated March 7, 2023