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Long term employment question

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  • May 14th, 2019 5:17 pm
[OP]
Newbie
May 12, 2019
2 posts

Long term employment question

I had a question, would appreciate any feedback, comments and if anyone knew little more about this.

I am a worker in British Columbia. As a company employee I have been employed past five years now full time. Company has been paying taxes and vacation hours etc. Recently the company has talked about shifting everyone to work as contractors.

Meaning I would be paying my own taxes.

Because of being employed more than five years by the company are there entitlements to anything? In this case I am not being layed off, but would basically become a contract worker.

Just would appreciate opinion and anything I should be aware off going forward.

thx
5 replies
Deal Guru
User avatar
Mar 23, 2008
13006 posts
9952 upvotes
Edmonton
danwick wrote: I had a question, would appreciate any feedback, comments and if anyone knew little more about this.

I am a worker in British Columbia. As a company employee I have been employed past five years now full time. Company has been paying taxes and vacation hours etc. Recently the company has talked about shifting everyone to work as contractors.

Meaning I would be paying my own taxes.

Because of being employed more than five years by the company are there entitlements to anything? In this case I am not being layed off, but would basically become a contract worker.

Just would appreciate opinion and anything I should be aware off going forward.

thx
There's multiple issues going on. First off, the company would be laying you off as an employee. You could talk to an employment lawyer if they don't offer any kind of severance/notice. But they can provide "working notice", which means giving you notice that you'll be laid off in 3 months (for example). You'll have to research what's fair/allowed in BC.

Second, you should talk to an accountant about becoming a contractor. Whether you need to incorporate, how to structure your finances, etc. This would be dependent on your personal situation, so it's difficult to give "one size fits all" advice.

C
[OP]
Newbie
May 12, 2019
2 posts
Hi @cneufeld, no there is no working notice. It could happen any day. They haven't spoken of any severance either.

They just want to transition into contract work for everyone.
Deal Guru
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Mar 23, 2008
13006 posts
9952 upvotes
Edmonton
danwick wrote: Hi @cneufeld, no there is no working notice. It could happen any day. They haven't spoken of any severance either.

They just want to transition into contract work for everyone.
You should probably start with talking to your loca employment standards department in BC. They can help you with working notice or severance requirements. What the company would like to do isn’t relevant if it’s not legal. Don’t sign anything without getting advice.

And like I said, your other issue is how to structure being a contractor (assuming it’s a contractor instead of term employee, which is two different things). You need to figure out if you need/want to incorporate, get a GSTHST number (depending on your income level), etc. I would strongly advise investing the money and talking to an accountant before deciding, but you may want to wait till the company decides what they want to do.

C
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Dec 27, 2009
7657 posts
5074 upvotes
Victoria, BC
danwick wrote: Hi @cneufeld, no there is no working notice. It could happen any day. They haven't spoken of any severance either.

They just want to transition into contract work for everyone.
What they are doing sounds shady as hell. If you are currently employees, and nothing is changing, then I'm sure by definition you should still be considered employees (still showing up on their time schedule, not setting your own, etc). Just the cost to cover your own portion of CPP will be significant, never mind lost benefits like vacation pay, EI eligibility. I would NOT be happy about this. They should be paying you a lot more to make up for this.

PS - In BC they have to give you 6% vacation pay after 5 years of employment (works out to 3 weeks per year) if they aren't already doing this (it seems like this type of shady company might be screwing you over in more ways than one, so just thought I'd mention it).

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