Question 4 - Employment Law

J&P Partners manages funds for high net worth individuals. Katie works for J&P as a junior analyst and has worked in this role since graduating university three years ago. Most of the work involves analyzing financial assets J&P are considering purchasing for their clients. Katie works 40 hours per week in the office starting at around 9am and leaving at around 5pm but often works additional hours from home and is expected to respond to emails that come in during the evening. Both her laptop and phone are provided to her by J&P and her work is determined by J&P's managers.

Katie has a contract with J&P that includes the following clauses:

1.The relationship of the Analyst to J&P is that of an independent contractor. The Analyst is not an employee of J&P.

2.The Analyst is obligated to report as income all compensation received from J&P under this Agreement and to pay all taxes thereon.

3.J&P may terminate this Agreement at any time and the Analyst hereby revokes the right to any severance under theEmployment Standards Act, 2000.

4.The Analyst shall be compensated for 40 hours per week at an hourly rate of $27.00 per hour. Any additional work done by the Analyst shall be considered professional development and J&P has no obligation to make further payment.

In March 2020, Katie was asked to dinner by one of the partners (Steven) to discuss her progress towards becoming a senior analyst. The dinner took place at a restaurant inside the Royal York Hotel. Steven spent most of the dinner talking about himself. At the end of the dinner, Steven said that he would like to continue their conversation in a more private setting and told Katie that he had booked a hotel room. He told her that if the private meeting went well, she was sure to be promoted in April. Katie said that she would prefer to discuss her promotion at the restaurant or in the office the following day. Steven asked if she was sure and said that the meeting would be better for her if it happened tonight in the hotel room. When Katie declined Steven said that he'd paid the bill and walked off without saying goodbye.

The following day Katie was called into a meeting with Steven and two other partners. Rather than discussing her promotion, Katie was told that she was being put on a Performance Improvement Plan ("PIP") and that if her work did not improve over the next three months she would be fired. In the weeks following the meeting, Katie found that her workload increased substantially and that it would take her until midnight each day just to keep up with new work. Previously, Katie averaged about 45 hours per week of work but her work became 90 hours per week after she was put on the PIP. Due to a lack of time and general exhaustion, Katie began making minor mistakes. At the end of the three month PIP, Katie was informed that because of her poor performance she was being terminated. She was also told that J&P would tell any prospective future employers that she was terminated for poor performance.

1)Is Katie an employee or a contractor? Include all relevant analysis you use to reach your answer.

2)What are the issues that Katie could potentially seek damages for (list and explain all that apply)?