Canadian business law - Case Study Example

Axel’s Compensation Case Axel’s Compensation Case The Ontario’s Employment Standards Act, 2000 (ESA) may duly acknowledge the legality of Chip’s employment as Axel’s driver. Axel has complete legal obligations to ensure absolute wellbeing of the employee then. However, the scenario changes when Chip decides to take up his responsibility from a different performance dimension. As an independent contractor, as he proposed in his new work preference, Chip began to operate as a single entity in mere form of partnership with the Axel Company.

ESA stipulates that an independent contractor like the case of Chip operates on an equal bargaining power as the Axel company receiving his services (Government of Canada, 2014).Therefore, his new terms of work calls for autonomous management of his own affairs and complete independence in the execution of his duties as assigned by the company (Primerus, 2014).The Canadian Ministry of Labor provides policy guidelines for managing the aspects of independent contractors. The ministry, while offering protection for the rights of both employees and independent contractors, outrightly describes Chip’s situation differently.

He ceased to have entitlement to benefits accruing to the company’s employees. From a critical viewpoint, Chip is no longer Axel’s employee, meaning that he does not have to be answerable to the company. He has no employment rights enshrined in the ESA as he had before going the independence way.Furthermore, he has no entitlement to equal treatment as other employees working under Axel. While coming to this new contract, Chip had made all considerations and come to a sober and an informed decision thereby foregoing all related employee benefits.

Against the legal obligations of the Canadian Revenue Agency (CRA), Chip faces two conflicting scenarios; he has fraudulently evaded tax and premium compliance by not informing the Workers Compensation scheme of the current changes in his work contract. According to the obligations of the CRA, Chip ought to commence remitting his own revenue billings, an obligation that he violated by not informing the relevant authorities of the changes in work contract. Moreover, no workplace insurance premiums get billed on the work as done by Chip.

This scenario means that he fraudulently remains a beneficiary of the Axel’s employee schemes against the requirements besides signing a different work contract.As he drove out of Axel’s premises, Chip’s mandate was independent of Axel’s. He was absolutely out of duty as per the new work contract such that his actions could not influence Axel’s owing to his new autonomous form of work contract. Besides, it is justifiable otherwise that the accident was unpreventable. As such, it was Chip’s responsibility to employ driving professionalism and avoid the accident.

Furthermore, the location of the accident scene is not a busy highway where it is most likely that a small distraction may lead to a fatal accident. Axel is not in any case liable to Chip’s compensation in the case of such an accident. According to the stipulations of the ESA, Chip’s terms of contract do not in any case oblige the company to offer him any compensation outside the work contract. While driving out of the company, there was no ongoing contract, therefore, whatever took place thereafter was completely within his responsibility.

The company is specifically obliged to honor all contract-related requirements as provided in the signed contract. The Canada Labour Code (R.S.C., 1985, c. L-2), section 133, accords an employee the right to present complaints of alleged action taken against him or her by the employee (Government of Canada, 2014). It, however, does not apply in Chip’s case.ReferencesGovernment of Canada. (2014). Canada Labour Code (R.S.C., 1985, c. L-2): Complaints when Action against Employees. Reteived from http://laws-lois.justice.gc.

ca/eng/acts/L-2/page-62.html#h-56Government of Canada. (2007). Workers Rights in Canada: Employment Standards. Retrieved from: http://www.servicecanada.gc.ca/eng/about/publication/workers_rights.shtmlGovernment of Canada. (2014). Canada Labour Standards Regulations (C.R.C., C. 986): Determination Of Hourly Rate Of Wages). Retrieved from: http://laws-lois.justice.gc.ca/eng/regulations/C.R.C.,_c._986/page-6.html#h-14Government of Canada. (2014). Labor Programs: Publications and Reports. Retrieved from: http://webcache.

googleusercontent.com/search?q=cache:http://www.labour.gc.ca/eng/resources/publications/index.shtmlGovernment of Canada. Justice Laws Website. Retrieved from: http://laws.justice.gc.ca/eng/index.htmlPrimerus. (2014). Frequently Asked Questions: Employees and Independent Contractors in Ontario. Retrieved from: http://www.primerus.com/business-law-articles/faqs-employees-and-independent-contractors-in-ontario-05152012.htm