Independent contract workers in all industry sectors, including construction, are finding fixed-term, independent employment in today’s “gig economy.” A recent Ontario Court of Appeal case illustrates the importance of clarity when it comes to understand
GovernmentIndependent contract workers in all industry sectors, including construction, are finding fixed-term, independent employment in today’s “gig economy.”
Antonio Monterosso was hired as an independent contractor by Metro Freightliner Hamilton on a 72-month contract. Only seven months into the agreement, Metro terminated the contract without cause. Monterosso filed a claim seeking full payment for the contract. The trial judge ruled the contract was clearly for a 72-month period and did not include a termination clause. The court awarded Monterosso $552,500 plus HST, that being the balance of the contract owing.
In terms of any obligation on Monterosso to mitigate damage, the court of appeal ruled, “a duty to mitigate arises when a contract is breached, including contracts with independent contractors. Of course, the terms of a contract may provide otherwise. However, nothing in this case takes it outside the normal circumstances in which mitigation is required. The burden was on the appellants to establish that the respondent failed in his duty to mitigate, and they did not meet that burden.
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