What defines an “independent contractor” in relation to employees?

An independent contractor is defined as a self-employed individual who provides services to others under a contractual agreement but does not have the same legal status or protections as an employee. This distinction is crucial in Canadian employment law, as independent contractors do not receive employee benefits like health insurance, retirement contributions, or paid leave that employees typically enjoy. Instead, they operate under a contract that delineates the terms of their services and generally have more control over how they complete their work.

The attributes of being self-employed and lacking employee benefits directly align with the definition of an independent contractor. They often handle their own taxes and have the flexibility to work for multiple clients simultaneously, highlighting their independent status rather than being integrated into a company’s workforce.

In contrast, the other options present characteristics that do not align with the term "independent contractor." Employees have job security and a range of benefits, which independent contractors do not. Part-time status also does not define independence; an independent contractor can work full-time or part-time, and guaranteed job security does not apply to independent contractors, who typically work on a project basis without employment guarantees. Hence, recognizing the unique position of independent contractors in the employment spectrum is key to understanding their role and rights within Canadian law.