Question

“Homes that Care” (“Homes”) operated foster homes and group homes for children with behavioural problems. To carry out its services, Homes hired a number of childcare workers including Marie Chen. Prior to starting work with Homes, Chen signed a contract specifying that she was working as an independent contractor. She reported her income from the contract for income tax purposes as income earned as an independent contractor, but she failed to remit last year’s income taxes. Her guaranteed hours of work were 20 hours per week but she could work as many as she wanted and she often worked 50 hours per week, without overtime. The staff turnover rate was very high and the average age was 23. Chen was terminated without cause and with no notice as per her contract. Chen wants to know what she can do.

Homes drafted the contract and dictated virtually every aspect of the how the work was performed through policies and procedures issued by the company Manual, based on the requirements of the provincial legislation relating to child and family services. Chen could adjust her pay through accepting or refusing hours of work and schedules, however Homes scheduled the actual hours of work. She was required to have her own cell phone and have access to a computer. She was also expected to use her own motor vehicle to access the sites where her work was performed and to occasionally transport some of the children.

Settlement is not going well and Chen calls Canada Revenue Agency (CRA) to report the company. On what basis might Chen report Homes? How would this help Chen? Why did Home’s favour this work arrangement?

Need there paragraph discussion

three*

Answer 1

Clearly, Chen has a contractual agreement with Homes and that she is paid for the services she renders as an independent contractor. Though she is not a salaried employee, her contract cannot be terminated abruptly by Homes. Reason for termination must be provided along with all the compensation as per the work done by Chen and the contract signed by both.This is the basis for Chen to report Homes.

The Canada Revenue Agency can mediate in the issue and ensure Chen gets her due payment for the work she has done for the firm. Also, she must be paid for having to use her vehicle and phone for work purpose, provided it is mentioned in the agreement.

A contract enables Homes to save costs of hiring permanent salaried employees. Homes does not have to provide amenities/facilities and benefits such as paid leaves, medical insurance, travel allowance, etc. Also, the independent contractor can be paid in proportion to the work done by her, and not like a salaried employee whose pay is fixed irrespective of the work done by the employee.