Question 1 (30 minutes, 20 marks)

When determining the status of an individual as an employee versus an independent contractor, CRA and the courts use the following four means tests: Control; Ownership of Tools; Chance of profit/risk of loss; and Integration.

Consider the following case:

Danny Dolittle currently works as a contractor for Acme Publications as a delivery driver. His job is to deliver the various magazines, supplements and other printed materials to various retail outlets for sale.

CRA has just completed a payroll audit of ACME and has determined that Danny is not an independent contractor, and is in fact an employee. As a result, CRA has assessed Acme with amounts owing for both EI and CPP. They have also reassessed Dannys personal tax return and have disallowed several deductions he made as a self employed contractor.

Acme and Danny have appealed CRAs decision.

Here are some more facts in the case:

i) There was no written contract between Danny and Acme. He was, however, provided with a two-day training session where he went on the delivery route with another employee.

ii) Danny did not incorporate, and just operated as an independent contractor

iii) Danny was not given detailed instructions on how to do his job but knew that all deliveries had to be done by a certain time every day. The schedule was not determined by Acme, but rather by the need to get the deliveries done before the retail outlets opened for business.

iv) Danny would contact Acme after the deliveries were done to let them know that he had finished for the day.

v) Danny could refuse work, but it was up to him to find a replacement to ensure the deliveries got done. Acme would pay the replacement, not Danny.

vi) Danny was provided an Acme vehicle and was required to wear a uniform to make the deliveries.

vii) Danny was paid by delivery.

viii) Acme does employ some other full-time employees and sets their responsibilities and their rates of pay.

vix) Any complaints received by Acme about the deliveries are discussed with Danny. He is responsible for sorting these out with the retail outlets. Obviously too many complaints would result in Dannys termination.

x) From time to time Danny worked inside helping Acme get the deliveries ready in the shipping area. When he did this work, he was paid as an employee.

Required

Use the four tests referenced above in order to help you form an opinion on Dannys employment status and comment on the likelihood of his and Acmes success in overturning CRAs ruling.

Question 2 (20 minutes, 8 marks)

Part A

What is the first and last rule as it pertains to receiving holiday pay. Provide an example of how this rule would be used to not pay an employee holiday pay they otherwise would be entitled to.

Part B

Frederick works as a commissioned salesperson (not a liquor server) for Valley Fine Ales, a local craft beer manufacturer. Frederick is paid on a biweekly basis. He received a commission of 10% on his sales. For the two weeks ending August 14^th his sales were $2,500 and he worked 48 hours. This pay period included the Civic Holiday. Frederick worked 8 hours on the holiday and did not miss any scheduled shifts before or after the holiday.

Required: Calculate the amount of pay Frederick should receive for the two-week period.

Question 3 (20 minutes, 12 marks)

Part A

For each of the following employees, determine the amount of termination pay they would be entitled to receive. Assume that their layoff is permanent.

Employee	Date of Hire	Date of Termination	Amount of Notice Given
Kamil	June 5 2014	Jan 31 2021	6 weeks
Gerard	Jan 1 2020	March 15 2020	none
Gurpreet *	Sept 15 2018	Dec 31 2018	none
Irina	Jan 1 2016	Dec 31 2020	2 weeks
* Note that Gurpreet has been employed since Jan 1 2020 but due to a car accident he had not worked since Sept 30.

Part B

Amanda has worked since June 1^st, 2015 for Standard Enterprises, a small manufacturing company. Amanda earns a salary of $50,000 per year plus 6% vacation pay. On December 1st, 2020 Standard notifies that her job will be eliminated effective January 1^st, 2021.

Calculate the amount of termination pay Amanda should receive, if any.