Describe the Legal Framework That Is Provided for the Employment Contract

Employment contracts are encased by many legal frameworks which significantly influence the how the contracts are interpreted and enforced. These legal frameworks include tests used by courts to determine who is an employee and how these tests were altered by the Pointe-Claire v. Quebec case trialed by the Supreme Court of Canada, and aspects of contract law which govern the establishment of employment contracts.

It is critical to determine who is an employee and who is an independent contractor because not only do most protective employment statutes pertain only to employment contracts (England, 2008, p. 16), but an employee has certain obligations under various legislation including the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act, the Employment Standards Act, the Workers Compensation Act, and the Labour Relations Code 9or the Canada Labour Code if the employee is regulated federally). Employees are also protected by the “reasonable notice” of termination of employment entitlement under the common law unless the employment contract includes an express provision regarding termination (Flanagan, Ravary & Boyd, 2005, p. 1).

Courts within Canada establish employee status by using a variety of tests; however three components are commonly exercised when coming to a decision. Courts conclude that an employer must demonstrate a high level of bureaucratic control over employment in regard to the where and when it occurs; a worker must be economically reliant on an employer; and a worker cannot be an entrepreneur operating a business, but must form a portion of the employer’s organization. The demonstration of control is essential to the employment relationship due to the subordination of the employee to the clout of the employer. Economic reliance showcases the central policy of protective employment legislation, which, essentially, shelters susceptible employees. The requirement of an employee being an integral part of the...