Authors: William Hockin and Cereise Ross
Effective January 1, 2023, the Employment Standards Act, 2000 (“ESA”) no longer applies to individuals who are business consultants or information technology consultants when:
- they provide services through (i) a corporation of which they are a director or shareholder party to a unanimous shareholder agreement; or (ii) a sole proprietorship that is registered under the Business Names Act; and
- there is an agreement for the individual’s services that expressly sets out an hourly rate of at least $60 per hour, excluding bonuses, commissions, expenses and travelling allowances and benefits.
To assist in interpreting the new exemption, the ESA now includes definitions for the terms “business consultant” and “information technology consultant,” which broadly refer to individuals who provide advice or services to a business or organization in respect of its performance, or in respect of its information technology systems, respectively.
It is anticipated that this change will benefit both affected workers and organizations. Employers now have greater certainty about the status of consultants under the ESA. Consultants now have enhanced options and leverage within the labour market. More broadly, market watchers have suggested that these changes will attract highly skilled workers to Ontario and increase competitiveness.
If you are a freelance business or IT consultant and want to better understand how these changes will impact you, contact Turnpenney Milne to set up a consultation with one of our lawyers. If you are a company that engages the services of business or IT consultants, you may want to protect yourself with more fulsome written contracts incorporating these changes. Contact us for assistance.