Independent Contractor Vs Employee



Independent Contractor-Freelance

Ordinary Hours of Work are regulated. A worker must NOT

work more than: 45 hours in any week, nine hours a day if a worker works five days

or less a week, eight hours a day if a worker works more than five days a week.

Hours of work are not regulated.


Payment: Done Daily, Weekly or Monthly either in cash, cheque or direct deposit

Independent Contractors will generally invoice the company and payment terms are dependent on the contract


Night Work: Night workers must get extra pay or can work fewer hours for the same amount of money Night work is common

Annual Leave: A worker can take up to 21

continuous days’ annual leave or by agreement

Leave is not applicable to a contract

Maternity Leave: A pregnant worker can take up to four continuous months of maternity leave. She can start leave any time from four weeks before the expected date of birth


entitled to claim benefits from

the Unemployment Insurance Fund.

freelance worker may not work for six

weeks after the birth of her child

Family Responsibility Leave: Full‐time workers

employed longer than four months can take

three days’ paid family responsibility leave per year on request

N/A to  Independent Contractors
Employment Contract relevant – information about their job and working conditions contract will define the terms and conditions between parties
May be included in their terms of employment

Medical & Insurance:  Independent Contractors  are

responsible for their own health and medical


Approved Deductions: An employer may not deduct any money from a worker’s pay unless it is done by consent or required by law


A principal contractor can only deduct money from a freelance payment if a signed

agreement or Acknowledgement of Debt is in place.

Employee required to give notice for termination of employment A termination clause is generally included in the contract
Severance Pay: An employer must pay a worker who is dismissed due to the employer’s operational requirement pay equal to at least one week’s severance pay for every year of continuous service with that employer.  Not entitled to Severance Pay

Certificate of Service: When a job ends, a

worker must be given a certificate of service.

Tools & Equipment: Employees are generally provided all the tools and equipment required to perform their work, including uniforms Have access to their own tools and resources

Workplace disputes: resolved by Trade Union registered with the Dept. of

Labour, or through the Council for Conciliation, Mediation and Arbitration (CCMA).

Not entitled to join a Trade Union and are also excluded from dispute resolution using the CCMA.