Courts and the CRA weigh factors such as control over how work is done, who provides the tools, whether the worker can profit or lose from the engagement, and how integrated they are into the business. A written label is evidence but is not decisive. Some relationships fall into an intermediate "dependent contractor" category that carries notice entitlements.
Why it matters: misclassification can result in retroactive source deductions, CPP and EI liability, vacation and overtime entitlements, and notice on termination.