ERA analysis of employment relationship

The ERA applied the established legal test, examining the parties’ intentions, how the work was carried out in practice, and applying three common law tests: control, integration, and the fundamental test of whether the individual was in business on their own account.

Regarding the parties’ intentions, the ERA found “there was never any intention for an employment relationship of any sort.” 

The Authority noted that the worker “made decisions about what, when, how and where he chose to work” and “was free to engage in other work, businesses and obtain employment elsewhere.” 

The ERA determined the parties intended for the worker to have autonomy “because it was intended for [him] to be [a] partner of the business as a 20% shareholder and nothing more.”

The ERA found that in practice, the worker “worked independently,” identifying himself as a business partner, driving business direction as he saw fit, working hours and locations of his choice, referring to payments as loans consistent with shareholder drawings rather than wages, not requesting employee benefits, and working on his own business ventures.Â