Ask the ExpertTermination of a contractor
hri_Admin Staff asked 1 year ago

Hello,
We have a contractor (fixed term but payroll is with the temp agency) that we want to terminate. Do we need to pay the rest of the contract term or we can pay the notice period according to ESA? There is no provision on the offer letter regarding early termination of the service. No written contract. The contractor just passed 3 months of employment.
We are in ON.
Thanks in advance!

1 Answers
hri_Admin Staff answered 1 year ago

From our payroll expert. Hope this helps.
This all hinges on who is seen as the employer.If the contactor is an employee of the temp agency, then the only employer liability would be based on the contact between the client and the temp agency.
What makes this situation a little unclear are the references to an “offer letter” and “no written contract”. Usually, a temp agency would have a written contract with its clients.
If there is no written contract in this situation, the temp agency may want to go after the client for any notice owed to the employee.
Ontario is a little unusual in that there is a 1 week notice required to employees when an assignment with a temp agency is ended before the expected end date.